AI Giant Lobbying Against the California Bill SB 1047 That Aims to Regulate AI Technology

Technology tamfitronics

In February California State Sen. Scott Wiener announced a bill called SB 1047 to regulate AI companies and their work on a state level.
The bill has already been passed by the Senate and the state Assembly appropriations committee. It’s now awaiting a full assembly vote.
However, many tech companies like OpenAI, Meta, and Anthropic have opposed the bill, fearing it will stifle development.

Technology tamfitronics AI Giant Lobbying Against The California Bill SB 1047

On one hand, Californian policymakers are preparing to vote on a bill this week that would regulate the development and usage of AI in the state. On the other hand, many top tech companies such as OpenAI and Meta have been preparing to oppose it.

The bill, known as SB 1047, was introduced by California State Sen. Scott Wiener in February. The main purpose of the bill is to set some basic safety standards.

Here are some of the points the bill makes:

Mandatory safety testing for advanced AI models that cost over $100 million to develop or those that require too much computing power.
A kill switch that can fully shut down the AI system if needed.
AI developers will have to ensure that their tools aren’t being used in cyberattacks.
Third-party experts will have to be hired who will assess the company’s safety practices and provide protection to people who speak out against AI abuse.
The bill will also give the state attorney general the power to sue the AI developer if they don’t adhere to these rules.

Current Status of the Bill

The bill has already been passed by the state Senate by a 32-1 vote. Last week, it was passed by the state Assembly appropriations committee as well.

Now all that’s waiting is a full Assembly vote. If it passes by the end of the legislative session on Aug. 31, the bill will be sent to Governor Gavin Newsom who will decide whether to sign it or veto it. The final decision will be here by September 30.

Controversy Surrounding the Bill

While Wiener and those who voted in favor of the bill feel it’s necessary to have some regulations in place to safely develop AI, not everyone is in favor of SB 1047.

For starters, a group of California Congressional Democrats, including Nancy Pelosi, Ro Khanna, and Zoe Lofgren have opposed the bill. In an open letter, Pelosi and others said that this bill can do more harm than good and it might force AI companies out of the state.

Tech leaders like OpenAI, Meta, and Anthropic agree with the Congressional Democrats who are against the bill.

Jason Kwon, OpenAI’s chief strategy officer, wrote a letter to Wiener and said that a bill like this would really hinder AI development in the state and drive out companies. He further added that AI regulation is “best managed at the federal level” rather than through a “patchwork of state laws.”
Rob Sherman, vice president of policy and deputy chief privacy officer at Meta, also wrote a letter in June and said that when such heavy liabilities are placed on developers, it discourages them from encouraging the open-source movement.
AI startup Anthropic is also against the bill. It feels that AI regulation should be balanced in a way that it doesn’t stifle progression.

However, all this opposition doesn’t seem to rattle Wiener and his stance on the subject. He still feels this bill is necessary. He also responded to OpenAI’s letter on Wednesday and said the bill is only asking “large AI labs to do what they’ve already committed to doing,” There’s not much of a change.

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