California Governor Gavin Newsom announced on Tuesday that he has 38 bills regarding artificial intelligence awaiting his review, but one stands out: SB 1047, a legislation aimed at preventing AI systems from causing catastrophic events. For the first time, Governor Newsom shared his insights on this contentious bill.
Simply put, he believes SB 1047 has flaws. Newsom expressed a preference for AI regulations that address immediate challenges without jeopardizing California’s thriving AI sector. This position raises concerns for the future of SB 1047, which seeks to hold major AI companies accountable if their products result in significant harm, such as disrupting essential infrastructure. Conversely, approving the bill could alienate many in the AI industry who are urging Newsom to veto it.
“We’ve spent the last few years working on sensible regulations that encourage innovation while discouraging recklessness,” Newsom remarked during a conversation with Salesforce CEO Marc Benioff at the 2024 Dreamforce conference. “Finding that balance is particularly difficult in this domain, especially with SB 1047, due to its potential widespread impact and the chilling effect it may have, particularly within the open-source community.”
He emphasized the need to weigh real risks against hypothetical ones. “I can’t solve every issue. What are the problems we can realistically tackle?” he stated.
One key criticism of SB 1047 is its focus on preventing AI-related mass casualty and cybersecurity events costing over $500 million, while offering little accountability for technology firms below that threshold. Detractors argue that the bill could hinder innovation and inadequately address the pressing issues currently posed by AI systems.
Newsom made these comments to an audience of technology professionals in San Francisco. Throughout various tech conferences, conversations about SB 1047’s shortcomings have been prevalent. He was likely aware of the demographics of his audience and may have tailored his remarks accordingly.
Notably, the governor is backing his words with action. Earlier that day, he signed five bills into law addressing urgent AI issues witnessed in 2024, including AI-generated political misinformation and Hollywood studios creating digital clones of performers. These are likely the "demonstrable risks" Newsom was referring to.
“Governor Newsom recognizes California’s pivotal role in leading AI regulation, especially in the absence of federal action,” stated State Senator Scott Wiener. “His efforts to highlight social media impacts stem from the federal government’s regulatory shortcomings. I am confident the Governor will thoughtfully consider this bill.”
Newsom lamented the federal government’s failure to establish clear AI regulations. He noted California’s historical leadership in tech regulation—particularly regarding social media and privacy—and acknowledged the public's expectation for continued guidance from the state. However, he emphasized his commitment to ensuring California maintains its competitive edge in AI.
“We excel in this area, and I’m committed to preserving our leadership,” Newsom declared. “At the same time, there’s a profound responsibility to address the pressing concerns surrounding this technology, even among its most ardent supporters, which creates a challenging balance.”
While he suggested the notion that signing SB 1047 would immediately disrupt the AI industry may be overstated, Newsom recognized that signing multiple problematic bills over time could significantly affect California's standing.
On Tuesday, the governor did not explicitly indicate whether he would sign or veto the bill, informing the LA Times that he remains undecided. Major players, including OpenAI, Nancy Pelosi, and various tech trade associations, are advocating for a veto, while figures like Elon Musk and some notable AI researchers, including Yoshua Bengio and Geoffrey Hinton, are more supportive of SB 1047.
“We remain optimistic that the Governor will ultimately sign SB 1047 because he understands that if California doesn’t lead on safe and responsible AI innovation, who will?” stated Nathan Calvin, senior policy counsel for the Center for AI Safety Action Fund.
Governor Newsom has two weeks to decide. Until then, the uncertainty surrounding the bill’s fate remains a significant topic of discussion.
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