California Governor Vetoes AI Safety Bill, Citing Concerns Over Impact on Innovation

Gavin NewsomPhoto byAnadolu Agency/Getty Images

California Governor Gavin Newsom vetoed a significant bill on Sunday that aimed to create the nation's first safety regulations for large-scale artificial intelligence (AI) models. The veto deals a blow to efforts seeking greater oversight of the rapidly advancing AI industry. The proposed legislation would have introduced groundbreaking safety measures for AI, potentially influencing similar regulations nationwide.

While Governor Newsom has expressed support for regulating AI, he voiced concerns that the bill could stifle innovation. He highlighted that the proposed law failed to differentiate between AI systems used in high-risk scenarios and those performing basic functions. Newsom cautioned that the stringent requirements could harm California’s tech industry, which is home to numerous AI startups and major tech firms.

The bill, introduced by State Senator Scott Wiener, faced opposition from tech companies, including startups and industry giants, as well as some Democratic lawmakers. Newsom emphasized the need to balance innovation with safety, announcing instead a partnership with AI experts like Fei-Fei Li to develop guidelines for regulating AI.

The vetoed legislation aimed to mitigate AI-related risks by requiring developers to test and publicly disclose safety measures, such as protections against AI manipulation that could disrupt critical infrastructure. It also included whistleblower protections for employees. The bill's supporters, including prominent figures like Elon Musk and AI research company Anthropic, argued that transparency and accountability are essential given the growing power and complexity of AI models.

Senator Wiener called the veto a setback for public safety, noting that industry self-regulation is insufficient. He vowed to continue pushing for AI oversight, stressing the risks posed by advanced AI systems.

Despite the veto, the debate has accelerated discussions about AI regulation. California lawmakers have introduced other AI-related bills this year, including measures targeting deepfakes and workplace protections. The state, a leader in AI development, faces mounting pressure to establish rules governing this powerful technology.

Although Newsom rejected the bill, he has endorsed AI initiatives in other areas, including AI applications in transportation and public services. California also recently partnered with Nvidia to train developers and data scientists in AI, and Newsom signed legislation addressing election deepfakes and protecting Hollywood workers from unauthorized AI use.

Even with the setback, experts predict that similar AI safety proposals will emerge in other states, suggesting that the conversation around AI regulation is far from over.