California governor vetoes pioneering AI regulation bill

California Governor Vetoes Pioneering AI Regulation Bill

Sacramento, CA — On Sunday, California Governor Gavin Newsom vetoed a groundbreaking bill designed to introduce the first-ever safety regulations for large artificial intelligence (AI) models in the nation. The move is seen as a significant setback to attempts aimed at imposing oversight on a swiftly advancing industry that currently operates with minimal regulation.

The proposed legislation would have marked a seminal step in regulating AI, setting a precedent for similar measures across the United States. Proponents argued the bill was crucial for mitigating potential risks associated with AI, including its possible misuse for malicious purposes such as disrupting power grids or facilitating chemical weapons production.

However, Newsom expressed concerns that the bill was too rigid and could negatively impact the burgeoning AI industry in California. “While well-intentioned, SB 1047 does not consider whether an AI system is deployed in high-risk environments, involves critical decision-making, or the use of sensitive data,” Newsom stated. “The bill applies stringent standards to even the most basic functions, so long as a large system deploys it. I do not believe this is the best approach to protecting the public from real threats posed by the technology.”

Instead of endorsing the bill, Newsom announced a collaboration with several industry experts, including AI pioneer Fei-Fei Li, to develop appropriate guardrails around powerful AI models. Li was notable for opposing the original AI safety proposal.

The legislation, championed by Democratic State Senator Scott Weiner, aimed to compel companies to test their AI models rigorously and make their safety protocols public. It also sought to introduce whistleblower protections for employees. “The veto is a setback for everyone who believes in oversight of massive corporations making critical decisions that affect public safety and the welfare of the planet,” said Wiener. He indicated that the dialogue around AI safety had made significant progress due to the bill’s debate, promising continued advocacy on the issue.

Despite the bill’s rejection, efforts to regulate AI in California are far from over. The state has seen a flurry of legislative activities this year aimed at tackling various aspects of AI, including combating deepfakes and safeguarding workers. Legislators are motivated by past experiences in failing to regulate social media platforms, which they are keen not to repeat with AI.

The bill had initially garnered support from notable industry figures such as Elon Musk and Anthropic. Advocates argued that the proposed regulations would introduce much-needed transparency and accountability in the AI sector. The legislation targeted systems necessitating high computational power and those with development costs exceeding $100 million—a threshold no current AI models have yet reached but which industry experts believe could be achieved within a year.

Daniel Kokotajlo, a former researcher at OpenAI, voiced concerns over the concentration of power within private companies, terming it “incredibly risky.” The proposed regulations, he argued, were a critical step in addressing these risks.

Interestingly, the U.S. lags behind Europe in AI regulation. The California bill wasn’t as comprehensive as European measures but was viewed as a significant initial effort to address concerns related to job loss, misinformation, privacy invasions, and automation bias.

Some leading AI companies had already voluntarily agreed to adhere to certain safeguards outlined by the White House, such as model testing and information sharing. The California bill aimed to enforce such measures through legal requirements.

Critics, including former U.S. House Speaker Nancy Pelosi, contended that the bill would have stifled innovation and dissuaded investment in large-scale AI models. Newsom’s veto represents another triumph for big tech firms and AI developers, many of whom have actively lobbied against stringent regulations.

Notably, two other extensive AI proposals also failed to pass ahead of a legislative deadline last month. These measures aimed to mandate labels on AI-generated content and prohibit discrimination by AI tools used in hiring processes.

Governor Newsom has been vocal about maintaining California’s status as a global leader in AI, pointing out that 32 of the world’s top 50 AI companies are headquartered in the state. He has promoted various uses of generative AI to address issues like traffic congestion and homelessness and has initiated a partnership with AI giant Nvidia to enhance workforce skills in the AI domain.

In spite of Newsom’s veto, the California proposal has likely set the stage for similar initiatives in other states. Tatiana Rice, Deputy Director of the Future of Privacy Forum, highlighted the potential ripple effect, suggesting that lawmakers elsewhere might adopt or adapt the proposed measures in future legislative sessions.

As the debate over AI regulation continues, the discourse initiated by the California bill signals an ongoing concern over the balance between innovation and public safety in the rapidly evolving field of artificial intelligence.

Source: Noah Wire Services