California Governor Vetoes AI Bill Citing Innovation Concerns

California Governor Gavin Newsom has vetoed Senate Bill 1047, aimed at preventing catastrophic harms from large AI systems. Newsom expressed concerns that the legislation would create a “false sense of security” and stifle innovation, especially for California’s AI industry, which includes 32 of the world’s largest AI companies.

Introduced by state senator Scott Weiner, the bill required companies spending over $100 million on AI models to conduct safety tests and hire independent auditors. It also mandated a built-in “kill switch” to shut off models in case of mass damage or criminal misuse. Companies like Meta, Google, and OpenAI strongly opposed the bill, claiming it would unfairly target them while hindering open-source development and innovation.

Newsom’s decision followed significant lobbying efforts from both tech giants and advocates, including Hollywood figures and AI researchers, who argued that the bill was necessary to regulate potential AI risks. In his veto statement, Newsom highlighted the need for adaptable regulation that doesn’t hinder technological progress but ensures public safety.

While Newsom has passed other AI-related bills addressing immediate harms, such as deepfakes and content watermarking, SB 1047 was seen as a broader attempt to regulate the largest AI companies. Weiner called the veto a “setback for oversight of massive corporations,” criticizing Newsom’s balance between innovation and risk management.

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