Sept 30, V7N - California Governor Gavin Newsom has vetoed a controversial artificial intelligence safety bill, marking a significant moment in the ongoing debate over AI regulation. The decision, announced on Sunday, comes after strong objections from the tech industry, which argued that the bill could drive AI companies out of the state and stifle innovation.

In his veto, Newsom criticized the bill for not considering whether an AI system is used in high-risk environments or involves critical decision-making and sensitive data. He expressed concerns that the proposed stringent standards would apply even to basic functions of AI systems, potentially hindering their development.

Newsom has sought guidance from leading experts in generative AI to help California establish effective regulations that are based on empirical data and scientific analysis. He has also directed state agencies to broaden their evaluations of risks associated with AI, particularly concerning potential catastrophic events.

The bill, authored by Democratic State Senator Scott Wiener, aimed to implement safety testing for advanced AI models and establish a state entity to oversee the development of "Frontier Models." Wiener argued that the legislation was essential to protect the public from the rapid advancements in AI technology, which could become unmanageable if left unchecked. He criticized the veto, stating that it leaves the public vulnerable and allows companies to operate without binding restrictions.Despite the veto, Newsom emphasized the need for action to protect the public from potential AI threats, indicating that he plans to collaborate with the legislature on AI legislation in the next session.

This comes at a time when federal efforts to regulate AI have stalled, and the Biden administration is working on its own oversight proposals.The tech industry has largely welcomed Newsom's decision, with the Chamber of Progress, a tech coalition, praising the veto as a move that supports competition and innovation in California's tech economy. However, the bill faced opposition from major tech companies, including Google, Microsoft, and Meta, which expressed concerns about the implications of the proposed regulations.

In a separate move, Newsom signed legislation requiring the state to assess potential threats posed by generative AI to California's critical infrastructure, indicating a continued focus on the implications of AI technology in the state.

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