Governor Newsom Blocks AI Bill Over Innovation Concerns

Governor Gavin Newsom has vetoed California’s Senate Bill 1047 (SB 1047). Which aimed to establish new safety standards for artificial intelligence systems. His decision raises questions about the future of AI regulation in the state known for its technological innovation.

Balancing Innovation and Regulation

Newsom expressed concerns that the bill could stifle innovation in California’s thriving tech sector. “Adaptability is critical as we race to regulate a technology still in its infancy. This will require a delicate balance,” he stated. He pointed out that SB 1047’s focus on large-scale AI models—those costing over $100 million—might leave smaller yet equally risky models unregulated.

Industry Reactions

Support and Opposition

The bill, authored by State Senator Scott Wiener, sought to impose safety protocols for developers of large AI models and establish a Board of Frontier Models to oversee compliance. It garnered support from tech safety advocates. Including Elon Musk, who had called for its passage. “For over 20 years, I have been an advocate for AI regulation. Just as we regulate any product or technology that poses a risk to the public,” Musk said.

However, major tech companies like OpenAI, Meta, and Google opposed the bill. Arguing that state-level regulations could hinder innovation and that a federal approach would be more effective.

Concerns Over Scope

Newsom echoed industry concerns, suggesting that a California-only approach might not be sufficient. “A California-only approach may well be warranted—especially absent federal action by Congress. But it must be grounded in empirical evidence and science,” he wrote.

Looking Ahead

Senator Wiener expressed disappointment with the veto, warning that without regulation, AI companies would continue to self-police without enforceable safety standards. While Newsom has signed other AI-related bills to combat deepfakes and protect actors’ likenesses from unauthorized AI use, his rejection of SB 1047 underscores the challenges of regulating rapidly evolving technologies.

Newsom pledged to collaborate with experts, lawmakers, and federal partners to develop future AI regulations. “We will find the appropriate path forward,” he promised.

The veto of SB 1047 highlights the ongoing debate between fostering innovation and ensuring public safety in the realm of artificial intelligence. As AI technology continues to advance, California’s approach to regulation will be closely watched by both the tech industry and policymakers nationwide.