Governor Newsom Vetoes Groundbreaking AI Law in California

Governor Gavin Newsom has rejected an artificial intelligence (“AI”) safety measure that would have imposed regulations on AI in California. This is a welcome decision for many, particularly major tech companies that had opposed its passage strongly.

Newsom explained that the measure could cause AI developers to move out of California while also stifling innovation.

The measure’s author, Senator Scott Wiener, argued that the veto permitted companies to carry on with the development of powerful tech with no government oversight. He explained that the decision also left AI companies with no binding restrictions from policymakers in the country.

The legislation would have required advanced models of artificial intelligence to undergo safety testing. It would have also made it compulsory for developers to make sure that their tech included “kill switches.” This would make it possible for companies to isolate and turn off AI systems in the event they became threats. Additionally, the legislation would have made official oversight mandatory for the development of powerful artificial intelligence systems.

In a statement, the governor explained that the legislation didn’t account for whether these systems were deployed in high-risk territories, involving the use of sensitive data or key decision-making. Instead, he continued, the legislation focused on applying strict standards to basic functions. The governor also announced plans to protect the public from the risks of artificial intelligence. In addition to this, he requested leading experts to aid in the development of safeguards for this tech.

Over the last couple of weeks, Newsom has signed 17 bills, including measures focused on clamping down on deep fakes and misinformation. This includes audio, video or image content created using generative AI.

The state of California is currently home to most of the world’s AI firms, including OpenAI. Its role as a hub for most of these tech companies means that any measure that regulates this sector would have a major impact on the industry, both nationally and globally.

Efforts made by Congress to impose safeguards on this industry have stalled. OpenAI, Meta and Google were some of the companies that opposed the legislation, warning that it would impede the development of important tech.

Wei Sun, a senior analyst at Counterpoint Research, supported that argument. Sun explained that artificial intelligence was still in its early stages, which meant that restricting the tech itself right now was premature. She added that it would be more beneficial to regulate certain applications that could result in harm in the future.

Nonetheless, the AI industry, including actors such as C3.ai Inc. (NYSE: AI), acknowledge that some form of regulation will have to be enacted sooner or later. The question is how a balance between enabling innovation and protecting public interest will be struck.

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