It took only a couple of years for this to become the situation, where sexually explicit AI technologies have exploded in popularity, and yet with their early development comes immediate worries about being rather hard (in regards to regulation by governments). Around the world, authorities are racing to create policy settings that might help shape how and where this technology is used. In 2023, the European Union introduced a sweeping regulatory package called the AI Act that has stricter provisions targeting high-risk aspects of AI applications — these include NSFW AIs. The law mandates companies to provide information on the algorithms at work and come with heavy penalties, going all way up €30 million or 6% of their annual global turnover.
Another leading voice in AI, China has issued directives on X-rated Robots as well. CAC passed new rules in this month that require companies to get government approval before publishing generative AI models in 2022. These regulations can have a more immediate, direct effect on companies like Baidu and Alibaba—increasing development costs to professionalize data handling or delaying product rollouts as new data protection standards are absorbed into upgraded code bases. The Chinese government has defended the measures as necessary to protect national security and preserve social order.
In the US, California has been leading but it's more fragmented. The Algorithmic Accountability Act of 2024 presented by California mandated companies to produce impact assessments for harmful AI systems, a category that NSFW AI fitted into. This is the kind of ethical issue with AI that Elon Musk warned about in 2021, when he sounded an alarm against unchecked advances that can threaten civilization.
In light of these recent events, it seems apparent that governmental oversight and intervention for NSFW AI cannot be avoided. This will add growing pressures to some of the companies operating in the NSFW AI space, and as more countries adopt similar regulations they too may also be forced to follow suit or re-establish themselves elsewhere instead. All of that could inevitably result in higher fees, longer development times and more sturdier compliance gate. According to a report by Grand View Research, the financial stakes are high: The global AI market was estimated at $39.5 billion in 2019 and is projected to have an astonishing value of up to $267 billion between now and 2027 Businesses that do not have systems in place to meet these regulations may be laid behind.
Anyone investing time in creating NSFW-AI based services must keep their eye on the ball when it comes to new regulations. As the industry continues to develop, so too will this sector's hurdles and opportunities. The discussion of NSFW AI is not limited to just the technology, but how it applies within a broader societal and regulatory context.
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