California Governor Blocks AI Safety Bill, Citing Innovation Concerns

California Governor Blocks AI Safety Bill, Citing Innovation Concerns

California Governor Blocks AI Safety Bill, Citing Innovation Concerns

In the US, ThoughtSpot looked even more certain to achieve that milestone this summer: Nearly two years after filing its S-1 paperwork, on June 18, it was announced that California Governor Gavin Newsom would be signing into law SB-731, a bill to create one of the first regulatory structures for AI software in the country. The move, which anguished many tech titans, has reopened the debate around AI development and regulation in the state.

Why the Bill Was Blocked

While sympathetic, Governor Newsom was also worried that the proposed bill might have the opposite effect: He noted that it could make California less of a haven for AI and therefore could actually accelerate rather than slow the exodus. The legislation applied “tough requirements” for all AI systems, in both high-risk environments and mechanisms of simple functionality, he said. Newsom said such a sweeping style could deter companies from developing AI and drive them to leave the state for friendlier places.

In a statement, Newsom said it was important to strike a balance: “We cannot afford to wait until there has been a major incident or a catastrophe before we take action to protect the public but at the same time we need to make sure that our actions are based on efforts that are not hastily developed and eventually futile.”

Concerns About AI Risks

Sen. Scott Wiener introduced the AI safety bill that would have placed limits on large-scale automated decision models by requiring companies to test and disclose safety measures publicly. These safety measures were aimed at protecting against undesirable outcomes like AI systems being hacked to blackout the state power grid or support in designing deadly weapons.

Proponents of the bill said that with AI technology improving so quickly, regulation was necessary to guard against potential abuses. “Voluntary commitments from the industry are not enforceable and rarely work well for the public,” said Senator Wiener in his criticism of the veto. He cautioned that in the absence of regulation, companies could create “incredibly powerful technology” unbound by safety measures.

Maintaining the Balance between Innovation and Security

However, in his brief speech, Governor Newsom also touched upon the dark side of AI: fear that jobs will be cuout by robots; elections one day might even be decided by AIs gone wild; or what everyone has worried about at one point or another, artificial intelligence turning against us. But he did suggest that overly broad standards in the bill could dampen innovation across the board on more advanced AI, as well.

But instead of signing the bill, Newsom said he would use the legislation to jump start a process for building more targeted and science-based rules with experts here in Silicon Valley like Li. Blank also underscored the point that California should be the vanguard in AI regulation, especially because Congress does not appear ready for federal action on this topic.

The Future of AI Regulation In California

The bill was shuttered, but Governor Newsom promised that California will introduce AI regulation. He said he will work with legislators and experts next session to come up with safer policy changes.

This veto occurs at a time when U.S. congressional efforts to provide oversight on AI safety regulation have stalled, with individual states, such as California leading the way. Newsom, who warned that the federal government is likely to be slow to act on AI regulation, indicated that it might have to be “a California-only approach.”

Conclusion

However, the AI safety bill that Governor Newsom rejected has rereouted the conversation from how quickly to expand our AI technology to how important it is to regulate what we create. While some think the bill could have offered important safeguards, others — including Newsom himself — had concerns the measure might stifle innovation in a vital sector. The governor has opted to create “reasonable guardrails” with experts to ensure that AI will continue growing in a safe, responsible manner throughout the state.

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