What would have been one of the first regulations on AI in the US has been blocked by the Governor of California.
The Safe and Secure Innovation for Frontier Artificial Intelligence Models Act (SB 1047) has proved very divisive with technology companies and Government officials alike.
There were claims from companies, including OpenAI, that the bill would stifle innovation but, in a twist, some employees of AI pioneering ventures broke ranks and came out in support.
AI Bill Deemed Potentially Damaging for the Economy
Governor Gavin Newsom has blocked the bill on the grounds that it is too sweeping.
Newsom writes in his letter to the California State Senate: “While well-intentioned, SB 1047 [the bill] does not take into account whether an Al system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data.
“Instead, the bill applies stringent standards to even the most basic functions – so long as a large system deploys it.” He states: “I do not believe this is the best approach to protecting the public from real threats posed by the technology”.
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Newsom also suggests that if the bill had been agreed, the State could see an exodus by the 32 AI companies it currently hosts.
AI Legislation Needed
The Governor makes it clear that he is not against legislation but says that a different measure of risk is needed than “the cost and number of computations needed to develop an Al model”.
The bill excludes smaller, specialized models, which he argues “may emerge as equally or even more dangerous than the models targeted by SB 1047”.
Newsom also suggests that a California-centric AI bill could still be agreed but just not this one. He writes: “To those who say there’s no problem here to solve, or that California does not have a role in regulating potential national security implications of this technology, I disagree. A California-only approach may well be warranted especially absent federal action by Congress – but it must be based on empirical evidence and science.”
History of AI Bill
Created by state Senator Scott Wiener, the bill targets developers of AI models that cost $100 million or more to train; but only if they are based in California.
It placed liability firmly with developers with the threat of charges if they don’t adopt precautionary measures before training their models. These measures include testing protocols to evaluate whether their model is posing any kind of threat.
It gained support from surprising places including Elon Musk and former Google Brain researcher and Turing Award winner, Geoffrey Hinton. OpenAI rival, Anthropic, had also signaled its support as did 113 employees or former employees of some of the biggest names in the AI space. They went public in a letter published earlier this month.
Newsom’s verdict also comes just one month after the California State Assembly passed the bill, pending a vote in the state Senate.
Next Steps for AI Bill
Senator Wiener has published his response to Newsom’s letter, and he and his co-sponsors are not going to go down quietly. Sunny Gandhi, Vice President of Political Affairs at Encode Justice, writes: “This veto is disappointing but we will not be stopped by it.”
Listening a host of terrifying, potential outcomes for AI gone bad, Wiener writes: “This veto leaves us with the troubling reality that companies aiming to create an extremely powerful technology face no binding restrictions from US policymakers, particularly given Congress’s continuing paralysis around regulating the tech industry in any meaningful way.”
Wiener also takes a side swipe at Newsom’s office, which he says could have had input into the bill during the legislative process, but chose not to.
The letter describes the veto as a “missed opportunity” but Wiener and his allies are clear in their intentions. As Wiener states: “California will continue to lead in [this AI] conversation — we are not going anywhere.”
