California halts AI bill amid industry concerns

California Governor Gavin Newsom has vetoed a contentious AI safety bill, citing concerns that it might stifle innovation and drive companies out of the state. The bill, proposed by Senator Scott Wiener, aimed to impose strict regulations on AI systems, including safety testing and methods for deactivating advanced AI models. Newsom acknowledged the need for oversight but criticised the bill for applying uniform standards to all AI systems, regardless of their specific risk levels.

Despite the veto, Newsom emphasised his commitment to AI safety, directing state agencies to assess the risks of potential catastrophic events tied to AI use. He has also called on AI experts to help develop regulations that are science-based and focus on actual risks. With AI technology advancing rapidly, he plans to work on a more tailored approach with the legislature in the next session.

The AI bill faced mixed reactions from both the tech industry and lawmakers. While companies like Google, Microsoft, and Meta opposed the measure, Tesla’s Elon Musk supported it, arguing that stronger regulations are essential before AI becomes too powerful. The tech industry praised Newsom’s decision, stating that California’s tech economy thrives on competition and openness.

Newsom’s veto has raised questions about the future of AI regulation, both in California and across the US. With federal efforts to regulate AI still stalled, the debate over how best to balance innovation and safety continues.