California AI Regulation Bill Hits Newsome’s Desk — Redmondmag.com

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California AI Regulation Bill Heads to Newsome’s Desk

• By John K. Waters
• 09.09.2024

California appears to be on the verge of setting a national precedent for regulating artificial intelligence.

Last week, state lawmakers overwhelmingly approved SB 1047, a bill that would impose new restrictions on AI technologies. The bill, which passed the California State Assembly by a 45-15 vote after a 32-1 vote in the state Senate in May, now heads to California Gov. Gavin Newsom, who has until Sept. 30 to decide whether to sign it.

If passed, the bill would require large AI companies to test their systems for security before releasing them to the public. It also gives the state attorney general the authority to sue companies for damages if their technologies cause significant harm, including death or property damage.

The passage of SB 1047 reignited a heated debate about how best to regulate AI. The debate has so far focused on generative AI systems, which have raised concerns about misuse in areas such as disinformation campaigns and even the creation of biological weapons.

Senator Scott Wiener, a Democrat and co-sponsor of the bill, celebrated the Assembly’s vote as a proactive step to ensure AI developments are aligned with the public interest. “With this vote, the Assembly has taken a truly historic step by acting proactively to ensure that exciting new technology protects the public interest as it develops,” Wiener said in a statement.

Newsom, who has faced intense lobbying from both sides of the aisle, has yet to publicly state his position on the legislation. The tech industry, including companies like Google, Meta and OpenAI, has mounted a significant campaign calling on the governor to veto the bill, arguing it could stifle innovation. They argue that regulation of AI technology should be handled at the federal level to avoid a patchwork of state laws that could slow the pace of progress.

Opponents also argue that SB 1047 is aimed at developers, not those who would misuse AI systems, such as those who would deploy AI tools for nefarious purposes. Nancy Pelosi, former House Speaker, joined other congressional representatives in raising concerns that the bill’s requirements are premature and could harm AI development. Pelosi called the legislation “well-intentioned but misinformed.”

On the other hand, prominent figures such as Elon Musk, CEO of Tesla and founder of xAI, have expressed support for the legislation. Musk, who has long advocated for AI regulation, called the bill a “difficult decision” but ultimately expressed approval due to the potential risks AI poses to society.

One of the most important aspects of SB 1047 is its emphasis on ensuring that companies test their AI models for safety. The bill applies to AI models that require more than $100 million in funding for training, a threshold that few current models meet but that experts say could become more common as the technology advances.

To address concerns from the tech industry, Sen. Wiener introduced several amendments to the bill earlier this month. These included removing a proposed new agency dedicated to AI safety and narrowing the bill’s liability provisions so that companies would only be penalized for actual harm, not potential harm.

Wiener emphasized that his approach is a “light touch” aimed at balancing the need for innovation with safety. “Innovation and safety can go hand in hand — and California is a leader in this area,” he said in a statement.

If signed into law, SB 1047 could make California a leader in AI regulation, similar to its role in setting national standards for environmental and consumer privacy regulations. It could also serve as a model for other states and even federal lawmakers that have yet to pass any comprehensive AI legislation.

The European Union has already passed the AI ​​Act, which imposes strict regulations on AI, but no such laws exist in the U.S. In an open letter to Newsome, a coalition of AI experts, including AI “godfathers” Geoffrey Hinton and Yoshua Bengio, warned of the disastrous potential of AI without proper safeguards:

Forty years ago, when I trained the first version of AI algorithms for tools like ChatGPT, no one — including me — would have predicted how far AI would go. Powerful AI systems hold incredible promise, but the risks are also very real and need to be taken very seriously. … I remain passionate about the potential of AI to save lives by improving science and medicine, but it is crucial that we have legislation with real bite to address the risks. California is a natural place to start because that is where the technology took off.

Bengio published an editorial in Fortune supporting the bill.

Newsome’s decision on SB 1047 will come amid a broader conversation about the role of AI in society and how to best harness its potential while mitigating its risks. As the largest home to AI companies, including 35 of the world’s 50 largest companies, California’s regulations could shape the global AI landscape for years to come. Whatever he decides, the stakes — for innovation, safety and governance of emerging technologies — are enormous.