Newsom vetoes AI oversight bill in California

AI Veto

Governor Gavin Newsom vetoed a bill on Sunday that would have created safety measures for large artificial intelligence models in California. The legislation, S.B. 1047, faced opposition from startups, tech giants, and several Democratic lawmakers. “I do not believe this is the best approach to protecting the public from real threats posed by the technology,” Newsom said.

He argued that the bill could hurt the industry by setting up strict requirements that might stifle innovation.

The bill, authored by Democratic state Senator Scott Wiener, would have required companies to test their AI models and publicly disclose their safety protocols to prevent misuse. It also included whistleblower protections for industry workers.

“The veto is a setback for everyone who believes in oversight of massive corporations that are making critical decisions affecting the safety and welfare of the public and the future of the planet,” Wiener said. Instead of adopting the legislation, Newsom announced that the state will partner with industry experts to develop AI safety measures.

Newsom’s AI bill veto explained

This approach, he hopes, will support California’s status as a global leader in AI innovation without stifling the industry. The governor’s veto comes as California lawmakers continue to debate new rules against AI discrimination in hiring practices and other related issues. This year, several other AI-related bills, including those requiring AI-generated content labeling and prohibiting discrimination in employment decisions, also faced significant opposition and did not pass.

The U.S. remains behind Europe in regulating AI, a technology that raises concerns about job displacement, misinformation, privacy invasion, and automation bias. According to supporters of the measure, the California bill would have been a step in the right direction, even if not as comprehensive as European regulations. Earlier this month, Newsom signed some of the strictest laws in the country to combat election deepfakes and protect Hollywood workers from unauthorized AI use.

He highlighted California’s role as an early adopter of AI tools, which the state could soon deploy to address various issues, including highway congestion and homelessness. Newsom’s decision reflects a balancing act between fostering innovation and ensuring public safety, a challenge that will continue to shape the landscape of AI regulation in California and beyond.

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Mason Carter

Mason Carter is a sharp-witted venture capital and startup analyst whose columns provide cutting-edge insights into the world of entrepreneurship and investment.

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