We Need AI Regulations, Now: A Look at the European Union and China

  • 30/07/2025
  • Category: Commentaries
No Comments
ai regulations

Author: Nathania Azalia
Editor: Achmed Faiz Yudha Siregar

 

Artificial Intelligence (AI) is a rapidly growing technology. Its continued development and usage are inevitable, especially with the global push for digitalisation and innovation. Its market is projected to hit USD 4.8 trillion by 2033 from USD 189 billion in 2023, further proving that it is leading the next generation of technology.[1] However, with the technology still evolving, concerns loom overhead. Risks such as job loss, misinformation, sexual violence, threats to privacy and consent, and ownership are just a few problems that are becoming prominent each day due to the unregulated use of AI. These risks to human interests highlight the urgency for AI regulations. Currently, only a few entities, such as the European Union (EU) and China, have comprehensive regulatory frameworks set up, as AI development is continuously evolving and at a pace that is challenging to keep up with.

As governments race to digitalise to keep up with the technological race, the case for guardrails becomes more pressing. With these many risks, more governments should speed up their enforcement of AI regulations to prevent the loss of basic human interests. This commentary examines the risks of unregulated AI, explores existing AI regulations in the EU and China, and what Indonesia can learn from them to build its regulatory frameworks.

The Risks of Unregulated Artificial Intelligence

The popularity of AI, especially generative AI, is becoming increasingly accessible to the public. While beneficial as a tool to ease tasks, it also comes with risks when unregulated. According to CNN, 41% of businesses worldwide are projected to reduce the workforce by 2030 due to AI adoption, reshaping the labour landscape.[2] This shift could cause difficulties for people to maintain their livelihoods without proper workforce reskilling and upskilling.

Moreover, AI is exacerbating sexual violence in the digital sphere. Generative AI technology’s ability to augment media is making it easier to create pornography, especially deepfake pornography. Deepfakes are digitally crafted videos and images, and in the case of pornography, anyone can create and share fake and nonconsensual content. A member of New Zealand’s Parliament, Laura McClure, recently raised this concern by showing an AI-generated nude image of herself in front of the Parliament.[3] She stressed that the problem lies in its misuse, not the technology itself.

Risks with copyright and gray areas surrounding art and AI also rose. Earlier this year, social media was taken up by a storm with OpenAI’s 4o image generation update, popularised by the trend of turning users’ pictures into images akin to Studio Ghibli films–such as Spirited Away and Howl’s Moving Castle. Hayao Miyazaki, founder of Studio Ghibli, himself has been critical of AI and artificially generated art, calling it an “insult to life itself.[4]” The popularity of this trend has highlighted the issue of ethical concerns over creative ownership, what it means for the future of artists and the value of human creativity.

Indonesia is increasingly becoming digitalised and the government is pushing for the development and deployment of AI.[5] However, we do not yet have clear and binding guardrails for this technology. With risks becoming more prominent with AI development, it is clear that regulations as a guideline for the development and use of AI are needed. The EU and China have taken steps on this matter.

A Look at Existing AI Regulations: The European Union and China

The EU established the Artificial Intelligence Act on 13 June 2024 as an official comprehensive legal framework to regulate the development, the placing on the market, the putting into service, and the use of AI in the region.[6] The Act defines AI as a machine-based system designed to operate with varying levels of autonomy and the ability to adapt over time. It uses input data to produce outputs such as predictions, content, recommendations, or decisions that can affect physical or virtual environments. The EU recognises that AI systems have risks involved and new measures have to be implemented. The Act is then used as a guardrail to ensure the development and adaptation of human-centric and trustworthy AI, taking into account the protection of health, safety, and fundamental rights, according to the Charter of Fundamental Rights of the European Union—which includes democracy, the rule of law, environmental considerations, and innovation.

To enforce the AI Act, the EU established the AI Office within the European Commission. It will form an AI governance system, including the implementation, monitoring, and supervision of AI systems, set to be completed by 2026.[7] Along with the Member States, the AI Board, the Scientific Panel, and the Advisory Forum will be overseeing the Act’s progress.[8] The implementation of the Act will also be done along with other policy measures on AI in the region, including the AI Innovation Package, the AI Factories, and the Coordinated Plan on AI. Through these initiatives, the EU is balancing between technological advancements and the protection of fundamental rights.

On the other hand, China has established AI regulations since 2021, starting with recommendation algorithms, towards the more recent generative AI through the Interim Measures for the Management of Generative AI Services (“the Measures”) published in 2023.[9] China encourages the innovation of AI technologies, but it has also mandated that the development and use of AI must abide by laws, respect social morality and ethics, and must not risk national security and interests.[10] The regulations make it mandatory for developers to register with the government’s algorithm registry, which tracks how these algorithms are trained and how they are secured.[11] Moreover, China established the Cyberspace Administration of China (CAC) to oversee AI governance. This is done together with other relevant ministries such as the Ministry of Information and Technology.

What can Indonesia do in this AI age?

Indonesia, like the rest of the world, is pushing for digitalisation in all spheres of life. AI is also a part of that vision. Looking at the many risks posed by unregulated AI, ensuring the balance between innovation and human interests is imperative. Both the EU and China have established guardrails for the development and deployment of AI in their region, each with its own variations according to their national and regional interests. However, ethics and the trustworthiness of AI remain at the forefront of AI regulations. The Indonesian government can learn from the EU and China to develop its own regulations, adapting to the country’s digital environment and culture, and prioritising human-centred AI development and deployment.

Bibliography

Budiyanti, L. and Adji, R. (2025). Indonesia encourages human-centered AI development. [online] Antara News. Available at: https://en.antaranews.com/news/363949/indonesia-encourages-human-centered-ai-development [Accessed 5 Jul. 2025].

Cyberspace Administration of China (2023). Interim Measures for the Management of Generative Artificial Intelligence Services. [online] www.cac.gov.cn. Available at: https://www.cac.gov.cn/2023-07/13/c_1690898327029107.htm.

European Commission (2025). AI Act. [online] European Commission. Available at: https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai [Accessed 23 Jun. 2025].

European Union (2024). Artificial Intelligence Act. [online] Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32024R1689 [Accessed 8 Jun. 2025].

Evans, G. (2025). Hayao Miyazaki’s ‘disgusted’ thoughts on AI resurface following Studio Ghibli trend. [online] The Independent. Available at: https://www.independent.co.uk/arts-entertainment/films/news/hayao-miyazaki-studio-ghibli-ai-trend-b2723358.html [Accessed 8 Jun. 2025].

Future of Life Institute. (n.d.). The AI Act: Responsibilities of the European Commission (AI Office) | EU Artificial Intelligence Act. [online] Available at: https://artificialintelligenceact.eu/responsibilities-of-european-commission-ai-office/ [Accessed 23 Jun. 2025].

Olesya Dmitracova (2025). 41% of companies worldwide plan to reduce workforces by 2030 due to AI. [online] CNN. Available at: https://edition.cnn.com/2025/01/08/business/ai-job-losses-by-2030-intl [Accessed 8 Jun. 2025].

Pandey, N. (2025). New Zealand MP Exposes Deepfake Threat By Displaying AI-Generated Nude Image Of Herself In Parliament. [online] NDTV. Available at: https://www.ndtv.com/world-news/new-zealand-mp-exposes-deepfake-threat-by-displaying-ai-generated-nude-image-of-herself-in-parliament-8591350 [Accessed 8 Jun. 2025].

Sheehan, M. (2023). China’s AI Regulations and How They Get Made. [online] Carnegie Endowment for International Peace. Available at: https://carnegieendowment.org/research/2023/07/chinas-ai-regulations-and-how-they-get-made?lang=en.

UNCTAD (2025). AI market projected to hit $4.8 trillion by 2033, emerging as dominant frontier technology. [online] UN Trade and Development (UNCTAD). Available at: https://unctad.org/news/ai-market-projected-hit-48-trillion-2033-emerging-dominant-frontier-technology [Accessed 8 Jun. 2025].

Zou, M. and Zhang, L. (2025). Navigating China’s regulatory approach to generative artificial intelligence and large language models. Cambridge Forum on AI: Law and Governance, 1. doi:https://doi.org/10.1017/cfl.2024.4.

  1. UNCTAD (2025). AI market projected to hit $4.8 trillion by 2033, emerging as dominant frontier technology. [online] UN Trade and Development (UNCTAD). Available at: https://unctad.org/news/ai-market-projected-hit-48-trillion-2033-emerging-dominant-frontier-technology [Accessed 8 Jun. 2025]. ↑

  2. Olesya Dmitracova (2025). 41% of companies worldwide plan to reduce workforces by 2030 due to AI. [online] CNN. Available at: https://edition.cnn.com/2025/01/08/business/ai-job-losses-by-2030-intl [Accessed 8 Jun. 2025]. ↑

  3. Pandey, N. (2025). New Zealand MP Exposes Deepfake Threat By Displaying AI-Generated Nude Image Of Herself In Parliament. [online] NDTV. Available at: https://www.ndtv.com/world-news/new-zealand-mp-exposes-deepfake-threat-by-displaying-ai-generated-nude-image-of-herself-in-parliament-8591350 [Accessed 8 Jun. 2025]. ↑

  4. Evans, G. (2025). Hayao Miyazaki’s ‘disgusted’ thoughts on AI resurface following Studio Ghibli trend. [online] The Independent. Available at: https://www.independent.co.uk/arts-entertainment/films/news/hayao-miyazaki-studio-ghibli-ai-trend-b2723358.html [Accessed 8 Jun. 2025]. ↑

  5. Budiyanti, L. and Adji, R. (2025). Indonesia encourages human-centered AI development. [online] Antara News. Available at: https://en.antaranews.com/news/363949/indonesia-encourages-human-centered-ai-development [Accessed 5 Jul. 2025]. ↑

  6. European Union (2024). Artificial Intelligence Act. [online] Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32024R1689 [Accessed 8 Jun. 2025]. ↑

  7. Future of Life Institute. (n.d.). The AI Act: Responsibilities of the European Commission (AI Office) | EU Artificial Intelligence Act. [online] Available at: https://artificialintelligenceact.eu/responsibilities-of-european-commission-ai-office/ [Accessed 23 Jun. 2025]. ↑

  8. European Commission (2025). AI Act. [online] European Commission. Available at: https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai [Accessed 23 Jun. 2025]. ↑

  9. Zou, M. and Zhang, L. (2025). Navigating China’s regulatory approach to generative artificial intelligence and large language models. Cambridge Forum on AI: Law and Governance, 1. doi:https://doi.org/10.1017/cfl.2024.4. ↑

  10. Cyberspace Administration of China (2023). Interim Measures for the Management of Generative Artificial Intelligence Services. [online] www.cac.gov.cn. Available at: https://www.cac.gov.cn/2023-07/13/c_1690898327029107.htm. ↑

  11. Sheehan, M. (2023). China’s AI Regulations and How They Get Made. [online] Carnegie Endowment for International Peace. Available at: https://carnegieendowment.org/research/2023/07/chinas-ai-regulations-and-how-they-get-made?lang=en. ↑