Silicon Valley on Edge as New AI Regulation Bill Advances in California

PYMNTS.com June 7, 2024

A new California legislative proposal, SB 1047, is sending ripples of concern through Silicon Valley.

Introduced by State Sen. Scott Wiener, the bill seeks to implement “common sense safety standards” for companies developing large artificial intelligence (AI) models that surpass specific size and cost thresholds.

If enacted, the legislation would compel these tech giants to adopt measures preventing their AI systems from causing “critical harm,” ensuring they can be shut down if necessary and mandating the disclosure of their compliance efforts to a newly formed “Frontier Model Division” within the California Department of Technology. Failure to comply could lead to civil penalties and potential lawsuits, raising the stakes for Silicon Valley’s AI innovators.

The bill is part of a growing...

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