California Governor Gavin Newsom has vetoed a groundbreaking artificial intelligence (AI) safety bill that faced significant pushback from major tech companies.
The proposed legislation aimed to introduce some of the first regulations on AI in the United States.
Governor Newsom argued that the bill could hinder innovation and lead AI developers to relocate out of California.
Senator Scott Wiener, the bill’s author, expressed concern that the veto permits companies to advance an “extremely powerful technology” without any government oversight.
The bill proposed mandatory safety testing for the most advanced AI models.
It aimed to require developers to integrate a “kill switch” into their technology, enabling organizations to isolate and effectively shut down an AI system if it posed a threat.
Additionally, the legislation would have mandated official oversight for the development of “Frontier Models,” which refer to the most powerful AI systems.
In a statement, Governor Newsom remarked that the bill “does not consider whether an AI system is deployed in high-risk environments, involves critical decision-making, or utilizes sensitive data.”
“Instead, the bill applies stringent standards to even the most basic functions – so long as a large system deploys it,” he added.
Simultaneously, Governor Newsom announced initiatives to safeguard the public from AI risks and enlisted leading experts to help establish protective measures for the technology.
In recent weeks, Mr. Newsom has also signed 17 bills, including legislation targeting misinformation and so-called deepfakes, which encompass images, videos, or audio content generated by AI.
California hosts many of the world’s largest and most advanced AI companies, including OpenAI, the creator of ChatGPT.
The state’s position as a hub for major tech firms means that any regulatory bill would have significant national and global implications for the industry.
Senator Wiener expressed that the decision to veto the bill leaves AI companies with “no binding restrictions from U.S. policymakers, especially given Congress’s ongoing paralysis regarding meaningful tech industry regulation.”
Congress’s efforts to implement AI safeguards have stalled.
Major tech companies like OpenAI, Google, and Meta were among those who opposed the bill, cautioning that it would impede the development of essential technology.
Wei Sun, a senior analyst at Counterpoint Research, remarked that “AI, as a general-purpose technology, is still in its early stages, so restricting the technology as proposed is premature.”
“Instead, it would be more beneficial to regulate specific application scenarios that may cause harm in the future,” she added.