California Governor Vetoes AI Safety Bill Amid Industry Opposition

California Governor Gavin Newsom vetoed a contentious AI safety bill on Sunday after facing strong objections from the tech industry, which argued that the bill could push AI companies out of the state and stifle innovation.

Newsom stated that the bill failed to differentiate between low-risk and high-risk AI applications and would impose “stringent standards on even the most basic functions, as long as they are part of a large system.”

He also called for collaboration with leading AI experts to establish practical safety measures based on scientific analysis. Additionally, he directed state agencies to expand their risk assessments for potential catastrophic events linked to AI use.

Generative AI, known for creating text, images, and videos in response to prompts, has sparked both excitement and concern over its potential to eliminate jobs, disrupt elections, and pose risks to human safety.

The bill’s sponsor, Democratic State Senator Scott Wiener, argued that regulations are needed to protect the public before AI technology becomes too advanced to control. However, some industry leaders questioned whether companies would continue operating in California if the bill were enacted.

Wiener criticized the veto, saying it leaves California less protected and AI companies without binding restrictions. He noted that voluntary commitments from industry players are often unenforceable and insufficient to safeguard public interests.

Also Read: OpenAI outlines AI safety plan

Governor Newsom acknowledged the need for preemptive action to prevent AI-related disasters but emphasized that regulations should be informed by scientific research and data. He pledged to collaborate with lawmakers on AI legislation in the next session, highlighting the absence of federal regulations.

The Chamber of Progress, a tech industry group, supported Newsom’s decision, emphasizing that California’s tech economy thrives on competition and openness.

The bill would have required safety testing for advanced AI models costing over $100 million to develop or those using a significant amount of computing power. It also proposed establishing a state agency to oversee “Frontier Models” that surpass current capabilities. Developers would have been mandated to include a “kill switch” mechanism for shutting down AI models if necessary.

The proposal faced resistance from major players like Google, Microsoft-backed OpenAI, and Meta Platforms while gaining support from Tesla CEO Elon Musk and Amazon-backed Anthropic, which saw the potential benefits despite some concerns.

Separately, Newsom signed legislation directing the state to evaluate potential threats from Generative AI to critical infrastructure.

California has already begun assessing energy infrastructure risks and will extend this analysis to water and communication sectors in the coming year.