What to Expect After California Governor Rejects the AI Safety Bill

The AI trend is taking the world by storm lately. Generative AI tools such as Google Gemini and ChatGPT are revolutionizing how we go about our daily activities. From automating repetitive tasks in various industries to enhancing personalized experiences on platforms like online casinos in California, where AI algorithms can analyze players’ behavior and preferences, suggesting games they are likely to enjoy based on their playing history. Additionally, AI can optimize bonuses and promotions, ensuring that players receive targeted offers that enhance their gaming experience.

In the competitive industry of online casinos, the use of AI not only boosts player engagement but also helps operators maintain a safer environment by monitoring problematic gambling behaviors. With real-time data analysis, casinos can implement responsible gaming measures, ensuring players are protected while enjoying their favorite games.

However, the widespread acceptance of this tech trend means authorities must move swiftly to regulate it. In California, legislators passed Senate Bill 1047 by Senator Scott Wiener of San Francisco in August, seeking to introduce sweeping measures to regulate the development of AI. This bill received an overwhelming 29-9 vote in the Senate.

Wiener said innovation and safety must be inseparable, and California must lead the way. He hailed the Senate for taking the “historic” step to protect public interest from this rapidly advancing technology. The Safe and Secure Innovation for Frontier Artificial Intelligence Act required AI companies to comply with specific rules, including shutting down AI models when needed. 

Governor Gavin Newsom Rejects the Bill

With just days remaining to decide, Gov. Newsom chose to veto the bill, disappointing many, including SpaceX CEO Elon Musk. The billionaire businessman publicly came out to support the bill, saying AI should be regulated just like any technology or product. Another disappointed supporter of the measure is Geoffrey Hinton, Google’s former AI lead. 

According to Newson, the regulation would have stifled innovation in the state, leading to the exit of AI developers. He faulted the bill for failing to consider whether the technology is deployed in critical decision-making processes or high-risk environments. Instead, he said the bill only focuses on applying stringent restrictions even to AI’s basic functions. 

If the Governor had signed the bill into law, it would primarily focus on ensuring AI safety. The bill required businesses that create large AI models to undergo safety tests. In addition, these businesses would need to publicly declare the safety measures in place to prevent AI models from being used for malicious intentions. 

Although the Governor’s veto is like defeat to the bill’s proponents, it would be unsurprising if Wiener and his allies table another bill in the upcoming session. However, it will be interesting to see the changes he will add to the new bill to convince Newsom to append his signature. Before the bill was passed, there were several industry-friendly revisions.

New Initiatives to Advance Safe AI Usage in California

While explaining his reasons for rejecting the bill, Governor Newsom also announced new measures to protect Californians from the transformative GenAI technology. This was after signing into law three other AI governance bills. The new laws require AI developers in the state to ensure the responsible use of this technology while protecting Californians. 

First is SB 942, which requires GenAI systems to disclose their source of information. While these disclosures would be invisible to the naked eye, they should be detected using special tools provided by the AI model. This bill aims to ensure transparency and accountability by allowing Californians to identify AI content easily. 

The second bill that was signed into law was SB 926, which targets sexually explicit deepfake content. This bill criminalizes the use of AI to create sexually offensive images of a real person without their consent. Dr. Aisha Wahab of Hayward said the bill would protect victims of digital sexual assault from shame and isolation. 

The Governor also signed SB 981 BY Wahab, which addresses the issue of sexually explicit identity theft. The new law requires social media apps to have platforms where users can report sexually offensive deepfakes of themselves. This legislation empowers Californians to protect their digital identity and privacy on social platforms. 

California Being the Hotbed of AI

AI is already changing the world, and The Golden State is playing a vital role in shaping the future of this technology. California is already home to 32 out of 50 leading AI organizations worldwide. The state has led the nation to leverage this transformative technology’s capabilities. AI’s impact is already visible in California’s education and transport industries. 

In May 2024, the California Department of Transportation announced plans to use GenAI to reduce traffic and road services across the state. The agency said at least 12 Californians succumb to road accidents daily. To address this problem, Caltrans has already contracted three private companies to study how AI can help with traffic bottlenecks and safety issues. 

AI technology has also become too important to ignore in other states nationwide. Several other states have already discussed and approved AI laws. However, California is still the most advanced state in terms of AI regulation. 

The Colorado Artificial Intelligence Act is probably the closest to California’s recent regulation. Signed into law earlier this year, this bill seeks to protect people from algorithmic discrimination by AI models in Colorado. However, it failed to address AI safety measures like SB 1047 did. Overall, expect to see more copycat trends in the US.