New technology regulation: what does it mean for Silicon Valley?


NEW TECHNOLOGY REGULATION: WHAT DOES IT MEAN FOR SILICON VALLEY?

A California bill implementing world-leading safety measures for large artificial intelligence (AI) systems has cleared a significant hurdle in the legislature.

William GittinsWilliam Gittins

Update: Aug 31st, 2024, 15:54 EDT

California is set to pass a bill regulating the actions of large-scale AI models, marking a potential first for any global jurisdiction.

The proposal, SB 1047, introduced by State Senator Scott Wiener (Democrat), mandates safety testing for AI models that exceed a specific computing power threshold or cost more than $100 million. Currently, no existing models meet this criteria.

The bill passed narrowly in the state assembly on Wednesday, having also secured necessary approval in the State Senate. It is now awaiting the signature of Governor Gavin Newsom, who has been lukewarm about prior regulatory attempts and has not publicly addressed this recent proposal.

WHAT IS IN THE CALIFORNIA AI BILL?
Supporters herald the bill as offering vital protections against the swift expansion of AI technology.

Under its provisions, developers will be required to present plans for deactivating AI models if they malfunction. This “kill switch” is intended as a safety measure if the technology fails. Moreover, the bill would empower the state’s Attorney General to sue companies that do not comply with these new standards.

Anthropic, a key player in Silicon Valley’s AI development scene, has expressed support for the bill, although they successfully advocated for a significant amendment that removed provisions for an AI oversight committee.

WILL GAVIN NEWSOM PASS THE AI BILL?
Though the bill has undergone all legislative processes, it is still pending final approval from the Governor. Newsom has until the end of September to sign it into law, veto it, or allow it to pass without his signature.

Historically, Newsom has resisted regulating the booming AI sector, crucial to California’s economy, where 35 of the world’s top 50 AI firms are located. Former House Speaker Nancy Pelosi has cited the bill as “well-intentioned but ill-informed,” adding to the scrutiny of its future.

ABOUT THE AUTHOR
William Gittins

William Gittins is a journalist, soccer enthusiast, and dedicated supporter of Shrewsbury Town. He has a passion for soccer that has withstood many playoff disappointments. After earning his degree from the University of Liverpool, he contributed to various British publications before joining AS USA in 2020, where he covers the Premier League, LaLiga, MLS, Liga MX, and football worldwide.

Follow him on Twitter.

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California, Artificial Intelligence, United States, Silicon Valley, Technology

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