California Gov. Gavin Newsom vetoes first-in-nation AI safety bill

California Gov. Gavin Newsom vetoes first-in-nation AI safety bill

California Gov. Gavin Newsom on Sunday vetoed a landmark bill aimed at establishing first-in-the-nation safety measures for large artificial intelligence models.

The decision is a major blow to efforts attempting to rein in the homegrown industry that is rapidly evolving with little oversight. The bill would have established some of the first regulations on large-scale AI models in the nation and paved the way for AI safety regulations across the country, supporters said.

Earlier this month, the Democratic governor told an audience at Dreamforce, an annual conference hosted by software giant Salesforce, that California must lead in regulating AI in the face of federal inaction but that the proposal “can have a chilling effect on the industry.”

this year to regulate AI, fight deepfakes and protect workers. State lawmakers said California must take actions this year, citing hard lessons they learned from failing to rein in social media companies when they might have had a chance.

Proponents of the measure, including Elon Musk and Anthropic, said the proposal could have injected some levels of transparency and accountability around large-scale AI models, as developers and experts say they still don’t have a full understanding of how AI models behave and why.

The bill targeted systems that require more than $100 million to build. No current AI models have hit that threshold, but some experts said that could change within the next year.

“This is because of the massive investment scale-up within the industry,” said Daniel Kokotajlo, a former OpenAI researcher who resigned in April over what he saw as the company’s disregard for AI risks. “This is a crazy amount of power to have any private company control unaccountably, and it’s also incredibly risky.”

The United States is already behind Europe in regulating AI to limit risks. The California proposal wasn’t as comprehensive as regulations in Europe, but it would have been a good first step to set guardrails around the rapidly growing technology that is raising concerns about job loss, misinformation, invasions of privacy and automation bias, supporters said.

A number of leading AI companies last year voluntarily agreed to follow safeguards set by the White House, such as testing and sharing information about their models. The California bill would have mandated AI developers to follow requirements similar to those commitments, said the measure’s supporters.

But critics, including former U.S. House Speaker Nancy Pelosi, argued that the bill would “kill California tech” and stifle innovation. It would have discouraged AI developers from investing in large models or sharing open-source software, they said.

Newsom’s decision to veto the bill marks another win in California for big tech companies and AI developers, many of whom spent the past year lobbying alongside the California Chamber of Commerce to sway the governor and lawmakers from advancing AI regulations.

Two other sweeping AI proposals, which also faced mounting opposition from the tech industry and others, died ahead of a legislative deadline last month. The bills would have required AI developers to label AI-generated content and ban discrimination from AI tools used to make employment decisions.

Source: cbsnews.com