California Relaxes AI Bill Before Final Vote Following Anthropic’s Advice

  • Editor
  • August 16, 2024
    Updated
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Key Takeaways:

  • Amended AI Regulation: California’s SB 1047, designed to prevent AI-related disasters, has been significantly modified following pressure from Silicon Valley, particularly AI firm Anthropic.
  • Reduced Legal Accountability: The bill no longer allows the California Attorney General to sue AI developers preemptively for negligent practices, limiting the state’s ability to regulate AI safety before a catastrophic event.
  • Advisory Board Established: Instead of a new government agency, the bill now creates a larger advisory board within an existing state agency to oversee AI safety, reflecting a compromise between regulation and industry concerns.

California’s effort to regulate advanced artificial intelligence, encapsulated in SB 1047, has become a focal point of debate between state legislators and Silicon Valley.

Initially drafted with stringent measures to prevent AI-related disasters, the bill has been significantly altered following substantial pushback from the tech industry, particularly from AI firm Anthropic and other major players in Silicon Valley.


The original version of SB 1047 was intended to hold developers of large AI systems accountable, especially in scenarios where these systems might cause widespread harm or cybersecurity incidents with damages exceeding $500 million.

The bill proposed that California’s Attorney General should be able to sue AI companies for negligent safety practices even before any catastrophic event occurred.


This provision, however, has been removed, following advice from Anthropic and other stakeholders in the artificial intelligence industry.

The amended bill now limits the Attorney General’s powers to seeking injunctive relief—essentially asking a company to stop a potentially dangerous operation—or suing only after a catastrophic event.

Another major change is that the bill no longer includes the creation of a new government agency, the Frontier Model Division (FMD), which was initially planned to oversee the implementation of AI safety measures.


Instead, the bill now proposes the establishment of a larger advisory body, the Board of Frontier Models, within the existing Government Operations Agency.

This board expanded from the originally planned five members to nine will be responsible for setting thresholds for AI models, issuing safety guidelines, and regulating auditors. This shift reflects a compromise aimed at balancing regulatory oversight with industry flexibility.

Further softening of the bill includes the removal of the requirement for AI labs to submit safety test results under penalty of perjury. Originally, this measure was intended to ensure that companies adhere strictly to safety protocols.


The revised bill, however, only requires labs to submit public statements about their safety practices, thus eliminating the threat of criminal liability.

Moreover, the language surrounding AI model safety has been relaxed; developers are now required to exercise “reasonable care” to prevent their AI models from posing considerable risks, as opposed to the stricter “reasonable assurance” previously mandated.

The bill also introduces protections for open-source developers. Under the new amendments, developers who spend less than $10 million fine-tuning an AI model are not considered liable under SB 1047.


Instead, the responsibility remains with the original, larger developer of the model. This change is seen as a move to protect smaller players in the tech ecosystem from the potential burden of regulatory compliance.

These amendments come in the wake of massive opposition from industry leaders and several U.S. Congress members representing California.

Critics argue that the bill could stifle innovation and disproportionately impact startups and small businesses even in its amended form.


Representatives Ro Khanna and Zoe Lofgren, both Democrats from Silicon Valley, have been vocal about their concerns, warning that the bill might be more focused on addressing hypothetical risks rather than real, immediate issues like misinformation, discrimination, and workforce displacement.

Despite these concerns, SB 1047 has made its way through California’s legislature relatively smoothly, thanks to the Democratic majority. However, its future remains uncertain.


Just after the bill passed the Appropriations Committee, eight California Congress members sent a letter to Governor Gavin Newsom, urging him to veto the bill.

They argued that the legislation, even with its amendments, “would not be good for our state, for the start-up community, for scientific development, or even for protection against possible harm associated with AI development.”

As SB 1047 moves to the California Assembly floor for a final vote, it is clear that the bill’s fate will depend on the delicate balance between advancing AI safety and maintaining the state’s position as a global leader in technology innovation.


If the Assembly passes the bill, it will return to the Senate for approval due to the latest amendments before landing on Governor Newsom’s desk, where he will have the final say on whether it becomes law.

The outcome will be closely watched in California and across the United States, as it could set a precedent for how AI is regulated nationwide.

For more news and trends, visit AI News on our website.

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Dave Andre

Editor

Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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