Governor Newsom on SB 1047: Balancing AI Innovation and Regulation

During a conversation at the 2024 Dreamforce conference, California Governor Gavin Newsom addressed the growing concerns surrounding AI regulation, specifically California's SB 1047. This bill seeks to hold AI companies accountable for catastrophic outcomes, but Newsom expressed reservations about its broad implications.

Balancing Innovation and Regulation

While acknowledging the need for AI oversight, Newsom emphasized the importance of finding a balance between encouraging innovation and preventing recklessness. “We’ve been working over the last couple years to come up with some rational regulation that supports risk taking, but not recklessness,” Newsom said. He highlighted SB 1047's potential to hinder progress, particularly within the open-source community, due to its far-reaching impact on AI vendors.

Concerns About SB 1047's Scope

Newsom's stance suggests that SB 1047 may face an uphill battle. The bill aims to prevent AI from causing large-scale disasters, such as the failure of critical infrastructure or cybersecurity breaches exceeding $500 million, but does little to hold tech companies accountable for anything short of that. However, critics argue that the bill overlooks more immediate AI-related issues while risking a significant slowdown in technological advancement.

Cracking Down on AI-Generated Political Deepfakes

Gov. Gavin Newsom has signed three new bills targeting the use of artificial intelligence in political ads, aimed specifically at reducing disinformation ahead of the 2024 election. One key law, effective immediately, makes it illegal to create or distribute AI-generated deepfakes related to elections within 120 days before Election Day and up to 60 days afterward. Courts are empowered to stop the spread of these materials and impose civil penalties. Additionally, major social media platforms must remove deceptive content, with enforcement beginning next year. Political campaigns are now required to disclose if AI has been used in their ads.

California’s Role in Regulating AI in Elections

California has long led the way in AI regulations, and these new laws reinforce the state’s position as a national leader. In 2019, California became the first state to ban manipulated images and videos in elections. Now, these updated laws build on that foundation and serve as a blueprint for legislators across the U.S. to address the growing threat of AI-driven election disinformation. The concern is that manipulated content will erode public trust in elections, something lawmakers nationwide are working to address as AI advances.

Addressing Demonstrable AI Risks

During the discussion, Newsom also pointed to the demonstrable risks that can be addressed today, rather than hypothetical scenarios, noting, “I can’t solve for everything. What can we solve for?” Earlier in the day, he signed five new AI-focused bills into law, targeting concerns that have already surfaced in 2024, such as AI-generated misinformation in elections and unauthorized AI replicas of actors in Hollywood.

Industry Response and What Comes Next

Supporters and opponents of SB 1047 are closely watching Newsom’s next move. Some, like state Senator Scott Wiener, have confidence in the Governor’s leadership, especially in light of California's history of tech regulation. Yet, influential players, including OpenAI and the U.S. Chamber of Commerce, are lobbying for a veto, while prominent AI figures like Elon Musk and Geoffrey Hinton have shown cautious support for the bill.

Governor Newsom emphasized California's leadership in AI, stating that while it's important to maintain the state's dominance in the field, there's also a responsibility to address major concerns surrounding AI. He acknowledged that even the strongest advocates of AI technology share these concerns, making it a complex issue to navigate.

On the same day that Newsom signed these AI-related bills into law, federal lawmakers introduced new legislation aimed at regulating the use of AI in elections. This bill would give the Federal Election Commission (FEC) the authority to oversee and regulate AI-generated political content, much like it has regulated other forms of political misrepresentation. The FEC is already beginning to look into AI, having recently banned AI-generated robocalls meant to deter voters.

Newsom suggested that concerns about SB 1047 causing immediate disruption to the AI industry may be exaggerated. However, he warned that passing poorly designed regulations over time could significantly affect California’s leading position in the AI sector.

With two weeks left to decide, Governor Newsom's remarks leave the future of SB 1047 uncertain.