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

California’s state senate just 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 concentrate on large AI corporations making greater than $500 million in annual income.

I acquired the prospect to debate SB 53 with my colleagues Max Zeff and Kirsten Korosec on the most recent episode of Trendster’s flagship podcast Fairness. Max believes that Wiener’s new invoice has a greater shot of changing into regulation, partly due to that large 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 must you care about AI security laws that’s passing a chamber in California? We’re getting into this period the place AI corporations have gotten probably the most highly effective corporations on this planet, and that is going to be probably one of many few checks on their energy.

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

To me, this appears like a probably significant test on tech corporations’ energy, one thing we haven’t actually had for the final couple of many years.

Kirsten: To your level about why it issues on the state stage, it’s vital to consider the truth that it’s California. Each main AI firm is just about, if not primarily based right here, it has a significant footprint on this state. Not that different states don’t matter — I don’t need to be getting emails from the parents in Colorado or no matter —  nevertheless 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 like there’s a number of exceptions and carve-outs. It’s narrower, however is it extra difficult than the earlier [bill]?

Max: In some methods, sure. I’d say the principle carve-out of this invoice is that it actually tries to not apply to small startups. And mainly, 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 situation 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 large corporations and never your run-of-the-mill startup.

Anthony: As I perceive it, if you happen to’re a smaller startup, you do should share some security data, however not almost as a lot.

It’s [also] value speaking in regards to the broader panorama round AI regulation and the truth that one of many large adjustments between final yr and this yr is now we’ve got a brand new president. The federal administration has taken far more of a stance of no regulation and corporations ought to be capable of 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 thus far, however probably they may attempt to get that by sooner or later. So this may very well be one other entrance by which the Trump administration and blue states are combating.

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

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