California Governor Gavin Newsom vetoed a bill on 29 September that aimed to implement safety testing requirements for Artificial Intelligence (AI) companies.
The bill, known as SB 1047, aimed to introduce safety testing for AI companies developing models with costs exceeding $100m or utilising significant computational resources. It also sought to make official oversight mandatory for the creation of the most advanced AI systems.
Additionally, it would have required AI developers in California to install fail-safe mechanisms, including a “kill switch” to quickly disable models in the event of emergencies or unexpected situations.
Newsom contended that the bill takes an overly generalised approach to AI safety, stressing that effective regulation should be grounded in empirical data, tailored to the distinct risks posed by various AI technologies and flexible enough to keep pace with the ‘fast-moving’ landscape of AI development.
In his correspondence to legislators explaining the decision, Newsom wrote: “By focusing only on the most expensive and large-scale models, SB 1047 establishes a regulatory framework that could give the public a false sense of security about controlling this fast-moving technology.
“Smaller, specialised models may emerge as equally or even more dangerous than the models targeted by SB 1047 – at the potential expense of curtailing the very innovation that fuels advancement in favour of the public good.”
California is not just a national hub but a global centre for AI companies, raising concerns that over-regulation could stifle innovation and push these businesses to relocate. Such a shift could have serious economic consequences for both the state and the country.
This concern was underscored by opposition from some of the world’s largest tech companies, including OpenAI, Google and Meta, who voiced their disapproval of the bill.
Senator Scott Wiener, who sponsored the bill, has warned that the veto permits companies to keep developing “extremely powerful technology” without any governmental oversight. He also states that this adds to Congress’s continuing struggle to regulate the tech industry.
In recent weeks, however, Newsom has signed 17 bills into law, including measures targeting misinformation and deepfakes, two significant issues stemming from AI technology.
“California is home to 32 of the world’s 50 leading Al companies, pioneers in one of the most significant technological advances in modern history. We lead in this space because of our research and education institutions, our diverse and motivated workforce, and our free-spirited cultivation of intellectual freedom,” Newsom concluded.
“As stewards and innovators of the future, I take seriously the responsibility to regulate this industry.”
Elsewhere, AI safety is becoming a hot topic as it takes shape in Europe. Earlier this month, Lord Chancellor Shabana Mahmood signed the first international treaty that establishes legal regulations for the safe use of AI.
Financial institutions are also making headway on AI safety, as last week the Bank of England established an AI Consortium.
