California Governor Gavin Newsom has recently approved SB 53, a groundbreaking bill that enforces new transparency standards on major AI corporations.
SB 53, which was passed by the state legislature a couple of weeks ago, mandates that prominent AI labs such as OpenAI, Anthropic, Meta, and Google DeepMind must disclose their safety procedures. Additionally, the bill guarantees protection for whistleblowers within these companies.
Furthermore, SB 53 establishes a system for AI firms and the general public to report potential critical safety incidents to California’s Office of Emergency Services. Companies are also required to report incidents related to crimes committed without human oversight, such as cyberattacks, and deceptive behavior by a model that is not mandated under the EU AI Act.
The reaction to the bill within the AI industry has been mixed. While tech companies have expressed concerns about state-level AI regulations hindering innovation, Anthropic has endorsed the bill. On the other hand, Meta and OpenAI have lobbied against it, with OpenAI even penning an open letter to Gov. Newsom discouraging the signing of SB 53.
The enactment of this new bill coincides with Silicon Valley’s tech elite channeling significant funds into super PACs to support candidates advocating for a light-touch approach to AI regulation. Leaders at OpenAI and Meta have recently launched pro-AI super PACs to endorse candidates and bills aligning with AI-friendly policies.
Other states may view California as a model when aiming to mitigate potential harms stemming from the unchecked advancement of this powerful emerging technology. In New York, a similar bill has been approved by state legislators and awaits Gov. Kathy Hochul’s decision on whether to sign or veto it.
Governor Newsom remarked, “California has demonstrated that we can establish regulations to safeguard our communities while fostering the growth of the AI industry. This legislation strikes a balance by enhancing public trust as AI continues to evolve rapidly.”
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The governor is also considering another bill, SB 243, which received bipartisan support in both the State Assembly and Senate this month. This bill focuses on regulating AI companion chatbots, requiring operators to implement safety measures and holding them accountable if their bots fail to meet the specified standards.
SB 53 represents Senator Scott Wiener’s second attempt at an AI safety bill, following Newsom’s veto of his broader SB 1047 last year due to resistance from AI companies. Wiener engaged with major AI firms to help them grasp the modifications made to the current bill.
