Lawmakers, tech companies clash over California AI regulation bill

California lawmakers are proposing groundbreaking legislation that would require artificial intelligence (AI) companies to rigorously test their systems and implement security measures to prevent tampering that could cripple the electrical grid or enable the production of chemical weapons. As technology rapidly advances, such situations could become possible, experts say.

The groundbreaking proposal to reduce the risks of artificial intelligence is set to be voted on Tuesday. Facebook and Instagram’s parent companies, Meta and Google, strongly oppose the plan. Google strongly opposes the plan. According to AP News, the tech companies say the rules unfairly target developers rather than those who use AI systems for malicious purposes.

California Positions Itself as a Pioneer in AI Regulation

The bill, authored by Democratic state Sen. Scott Wiener, aims to establish reasonable safety standards to prevent “catastrophic harm” from the persuasive AI models that are expected to emerge in the future. The requirements would apply only to AI systems with more than $100 million in computing power for training. As of July, no current AI models have met that threshold.

During a recent legislative hearing, Wiener emphasized that the issue is not “smaller AI models,” but rather “huge and powerful models that, as far as we know, don’t exist today” but will soon emerge.

Democratic Gov. Gavin Newsom has positioned California as a leader in AI adoption and regulation, emphasizing the potential deployment of generative AI tools to ease highway congestion, increase road safety and provide tax guidance, according to The Mirror.

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Newsome’s administration is also considering new regulations to combat AI discrimination in hiring practices. While Governor Newsom has refrained from commenting on the bill, he has warned that excessive regulation could jeopardize the state’s competitive advantage.

Technology companies express concerns

AI experts support the creation of a state body to monitor AI developers and establish best practices. It would give the state attorney general the power to sue for noncompliance. But a consortium of tech companies says the new laws will stymie mainstream AI development and the open-source community.

According to an ABC News report, Rob Sherman, Meta’s vice president and deputy chief privacy officer, said in a letter to lawmakers that the regulations would make the AI ​​ecosystem “less secure, threaten the open-source models” that startups and small businesses rely on by relying on “standards that don’t exist, and introduce regulatory fragmentation.”

The California Chamber of Commerce echoes those concerns, warning that the proposal could result in companies being forced to leave the state to avoid heavy regulation.

Opponents of the bill argue for more comprehensive federal guidance. Supporters, meanwhile, say California cannot afford to delay, pointing to mistakes made by failing to regulate social media companies quickly.

At the same time, state lawmakers are also considering another ambitious measure to address discrimination in automation. The measure aims to use AI models to help screen resumes and rental applications, seeking to ensure fairness in those processes.

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