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California’s legislature approves first-of-its-kind AI regulation

Friday, Aug 30

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On Wednesday, California’s State Assembly overwhelmingly approved a bill establishing first-in-the-nation safety regulations for large artificial intelligence companies – a measure that’s received mixed reactions from major industry players.

The proposal would require companies with advanced AI models to thoroughly test their systems for safety before releasing them to the public. The definition of “advanced” covers all AI models that meet a certain computing power threshold and cost $100+ million to develop.

  • If AI companies fail to test for potential “catastrophic” risks – such as the ability to instruct users on how to conduct cyberattacks or build biological weapons – California’s new bill would hold them liable in civil court for any severe harm caused by their models.

The proposed regulation has divided the AI world. Major technology firms, AI startups, and researchers are split over whether California’s new legislation would stifle innovation in the rapidly developing AI sector, or establish much-needed guardrails for the emerging technology.

  • Major AI players like Anthropic and xAi founder Elon Musk have offered cautious support for the bill, arguing AI’s potential risk to the public justifies some form of regulation.
  • Other tech giants like OpenAI, Google, and Meta publicly oppose the measure, saying it would “stifle innovation” and unfairly target developers instead of people who use and exploit AI for harm.

Big picture: If the bill is signed into law, California would become the standard-bearer for regulating artificial intelligence technology in the US, since Congress has yet to enact any federal AI legislation.

On an individual level, OpenAI and Anthropic yesterday announced an agreement to let the US government’s new AI Safety Institute test the companies’ new AI models before they’re released to the public.

Looking ahead… The proposed regulation now heads to the desk of California Gov. Gavin Newsom, who has until September 30 to sign or veto it. Newsom hasn’t publicly indicated his position on the issue.

📊 Flash poll: Do you agree with California’s proposed regulation that would require companies to thoroughly test their advanced AI models for safety prior to public release?

See a 360° view of what media pundits are saying →

Democratic donkey symbol

Sprinkles from the Left

  • Some commentators argue that California’s AI regulation is needed to address the possibility that, in the rush to dominate the market, AI companies might release highly funded products before they’re safe.
  • Others contend that there are myriad issues concerning rapidly occurring technological advances like AI that require Congress to step in and replace the current patchwork, state-by-state solution.
Republican elephant symbol

Sprinkles from the Right

  • Some commentators argue that without clear guidance from Congress, AI stands to get regulated by a patchwork of state government rules and overstepping by federal bureaucrats with a political agenda.
  • Others contend that AI is hard to regulate because it lacks a formal definition – and going too broad risks capturing all computational systems and over-regulating technological development, while narrower definitions risk quickly becoming obsolete.
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