why california’s sb 53 might provide a meaningful check on big ai companies

California AI Safety Bill Advances to Governor

The California State Senate has approved a new artificial intelligence safety bill, SB 53, and forwarded it to Governor Gavin Newsom for consideration. He will decide whether to sign it into law or issue a veto.

This development echoes a similar situation from the previous year, when Newsom vetoed a prior AI safety bill, SB 1047, also originating from Senator Scott Wiener. However, SB 53 adopts a more focused approach than its predecessor, concentrating on larger AI corporations with annual revenues exceeding $500 million.

A discussion regarding SB 53 took place on the latest episode of TechCrunch’s Equity podcast, featuring insights from Max Zeff and Kirsten Korosec. Max suggests this revised bill possesses a greater likelihood of enactment, largely due to its targeted scope and the endorsement it has received from AI firm Anthropic.

Below is a preview of the conversation concerning AI safety and legislation at the state level. (The transcript has been edited for brevity and clarity, and to enhance readability.)

The Importance of AI Regulation

Max: The passage of AI safety legislation in California is significant because we are witnessing the rise of AI companies as some of the world’s most influential entities. This represents a potential, and crucial, regulatory oversight of their operations.

This bill is considerably more specific in its scope than SB 1047, which faced substantial opposition last year. Nevertheless, SB 53 introduces meaningful regulations for AI laboratories. It mandates the publication of safety reports for their models and requires the reporting of any incidents to governmental authorities.

Furthermore, it establishes a secure channel for employees within these labs to voice concerns to the government without fear of reprisal from their employers, even if bound by non-disclosure agreements. This feels like a potentially vital counterbalance to the power of technology companies, something that has been largely absent for the past two decades.

California’s Role as an AI Hub

Kirsten: The state-level approach is particularly important given that California is a central hub for AI development. Most major AI companies are either headquartered here or maintain a significant presence within the state. While other states are also important, California’s position as a focal point for AI activity makes this legislation especially impactful.

However, it appears the bill includes numerous exceptions and carve-outs. While narrower in scope, is it perhaps more complex than the previous iteration?

Targeting Large Corporations, Protecting Startups

Max: In some respects, yes. A key aspect of this bill is its intention to avoid impacting smaller startups. A major point of contention surrounding Senator Wiener’s previous legislative effort was the concern that it could stifle the startup ecosystem, a vital component of California’s economy.

This bill specifically targets AI developers generating over $500 million in revenue from their AI models. The intention is to focus on major players like OpenAI and Google DeepMind, rather than smaller, emerging companies.

Safety Information and the Federal Landscape

Anthony: It’s worth noting that even smaller startups are still required to share some safety information, albeit to a lesser extent.

The broader context of AI regulation is also evolving. A significant shift has occurred since last year with the change in federal administration. The current administration has adopted a more laissez-faire approach, advocating for minimal regulation and allowing companies greater autonomy. They have even proposed including provisions in funding bills that would prevent states from enacting their own AI regulations.

Although these provisions haven’t yet been enacted, they could potentially be pursued in the future, creating another area of conflict between the federal government and states with more progressive policies.

Equity is TechCrunch’s flagship podcast, produced by Theresa Loconsolo, and is released every Wednesday and Friday.

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