Governor Newsom: VETO SB 1047
Keep California the Global Leader in Innovation
Governor Newsom: VETO SB 1047
Keep California the Global Leader in Innovation
SB 1047 will harm California's leadership in AI Development
California has always been a leader in technological innovation, home to 35 of 50 leading AI companies in the world, 21 of them in San Francisco alone. As the global hub for artificial intelligence (AI) development, home to the worlds leading AI companies, California stands to benefit immensly from this transformative technology.
But, SB 1047 threatens to undermine California's innovation leadership role and will harm our home grown development of AI technologies.
SB 1047 requires unrealistic guarantees and requirements, untenable liability risks, and full shutdown mandates, that no other state nor the Federal Government requires.
Regulatory inconsistency and uncertainty, high compliance costs, and significant liability risks imposed on developers for failing to guarantee against harmful uses of their models by third parties will ultimately have a dramatic and potentially devastating impact on the entire AI ecosystem, discouraging economic and technological innovation.
Why SB 1047 is the Wrong Approach
Unreasonable Liability Risks for Developers
SB 1047 imposes severe liability on developers, holding them accountable for any harm caused by others who may modify or misuse their AI models—even if the developers had no direct involvement in those actions. The law unfairly burdens developers with potential legal consequences for activities they cannot control. This will discourage open-source innovation and collaboration, which are vital for the growth of the AI ecosystem.
Intrusive "Know Your Customer" and Kill Switch Requirements
The bill requires developers to collect personal data from anyone who uses their computing resources to train AI models. This not only violates privacy rights but also introduces complex and burdensome requirements that many companies, especially startups, cannot afford to implement. Additionally, the mandate for kill switches—mechanisms to shut down AI systems during emergencies—sounds reasonable in theory but could lead to catastrophic disruptions in practice. Imagine a healthcare AI system being shut down during a critical moment, or a security AI being disabled during an attack.
Economic and Technological Risks to California’s Future
SB 1047 creates an atmosphere of regulatory uncertainty that could stifle innovation. Its broad and vague definitions of "critical harms" leave too much room for interpretation, leading to inconsistent enforcement and high compliance costs. These burdens will make California a less attractive place for AI companies to operate, driving innovation to other states or even overseas. At a time when the global race for AI leadership is heating up, California cannot afford to weaken its competitive edge by imposing overly burdensome regulations.
SB 1047 is well-intentioned but ill-informed
Speaker Emerita Nancy Pelosi
SB 1047 is NOT the Solution
While it’s clear that AI needs regulation, this must be done in a way that encourages responsible innovation rather than stifling it. Federal-level solutions, like the White House’s voluntary commitments to AI safety and Executive Orders, are more appropriate for tackling global issues like AI governance. We should build on these efforts rather than fragment the regulatory landscape with state-specific laws like SB 1047 that will only create confusion and weaken California’s leadership in AI.
California’s strength has always been its ability to foster innovation. We must not let SB 1047, with its overly restrictive and poorly thought-out approach, put that at risk.
Paid for by California Chamber of Commerce
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