Recently, artificial intelligence (hereinafter referred to as "AI") technologies have played an important role in the digital economy. AI is widely used in industrial manufacturing, network security, healthcare, transportation, robotics, energy, and public services, which has greatly promoted the progress and development of human society in China. However, the use of AI paves the way for new legal challenges, including but not limited to the issues of morality and ethics, data privacy and security, and protection of citizens' basic rights, that require a promote response and intervention. Specifically, how to balance AI innovation and control legal risks. By using doctrinal legal research methodology, this study examines the legal challenges and regulatory responses to AI in China. Primary and secondary data have been used and analysed using critical, analytical, and comparative approaches. It is found that special emphasis should be placed on promoting AI technological innovation and safety supervision in parallel in China. In light of this, it is suggested that there is an urgent need to formulate comprehensive AI' supervision regulations, adopt innovative regulatory measures, such as regulatory sandboxes, promote technological innovation in safety regulation, strengthen cooperation between government departments and technology companies, and finally improve industry self-discipline norms.