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Why California’s SB 53 might provide a meaningful check on big AI companies

California’s state senate lately gave ultimate approval to a brand new AI security invoice, SB 53, sending it to Governor Gavin Newsom to both signal or veto.

If this all sounds acquainted, that’s as a result of Newsom vetoed one other AI security invoice, additionally written by state senator Scott Wiener, final yr. However SB 53 is narrower than Wiener’s earlier SB 1047, with a deal with huge AI firms making greater than $500 million in annual income.

I acquired the possibility to debate SB 53 with my colleagues Max Zeff and Kirsten Korosec on the most recent episode of iinfoai’s flagship podcast Fairness. Max believes that Wiener’s new invoice has a greater shot of changing into regulation, partly due to that huge firm focus, and since it’s been endorsed by AI firm Anthropic.

Learn a preview of our dialog about AI security and state-level laws under. (I’ve edited the transcript for size and readability, and to make us sound barely smarter.)

Max: Why do you have to care about AI security laws that’s passing a chamber in California? We’re getting into this period the place AI firms have gotten essentially the most highly effective firms on this planet, and that is going to be doubtlessly one of many few checks on their energy.

That is a lot narrower than SB 1047, which acquired a variety of pushback final yr. However I believe SB 53 nonetheless places some significant laws on the AI labs. It makes them publish security experiences for his or her fashions. If they’ve an incident, it principally forces them to report that to the federal government. And it additionally, for workers at these labs, if they’ve considerations, offers them a channel to report that to the federal government and never face pushback from the businesses, though a variety of them have signed NDAs.

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To me, this appears like a doubtlessly significant verify on tech firms’ energy, one thing we haven’t actually had for the final couple of a long time.

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Kirsten: To your level about why it issues on the state degree, it’s essential to consider the truth that it’s California. Each main AI firm is just about, if not based mostly right here, it has a significant footprint on this state. Not that different states don’t matter — I don’t wish to be getting emails from the parents in Colorado or no matter —  however it does matter that it’s particularly California as a result of it’s actually a hub of AI exercise. 

My query for you, although, Max, is it simply looks as if there’s a variety of exceptions and carve-outs. It’s narrower, however is it extra sophisticated than the earlier [bill]?

Max: In some methods, sure. I’d say the primary carve-out of this invoice is that it actually tries to not apply to small startups. And principally, one of many fundamental controversies across the final legislative effort from Senator Scott Weiner, who represents San Francisco, who authored this invoice, lots of people stated it may hurt the startup ecosystem, which lots of people take concern with as a result of that’s such a booming a part of California’s financial system proper now.

This invoice particularly applies to AI builders which can be [generating] greater than $500 million [from] their AI fashions. This actually tries to focus on OpenAI, Google DeepMind, these huge firms and never your run-of-the-mill startup.

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Anthony: As I perceive it, in the event you’re a smaller startup, you do need to share some security info, however not practically as a lot.

It’s [also] value speaking concerning the broader panorama round AI regulation and the truth that one of many huge modifications between final yr and this yr is now we now have a brand new president. The federal administration has taken way more of a stance of no regulation and firms ought to be capable to do what they need, to the extent that they’ve really included [language] in funding payments saying states can’t have their very own AI regulation.

I don’t assume any of that has handed to this point, however doubtlessly they might attempt to get that via sooner or later. So this might be one other entrance through which the Trump administration and blue states are combating.

Fairness is iinfoai’s flagship podcast, produced by Theresa Loconsolo, and posts each Wednesday and Friday.

Subscribe to us on Apple Podcasts, Overcast, Spotify, and all of the casts. You can also comply with Fairness on X and Threads, at @EquityPod. 

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