California Governor Signs Law To Regulate Top AI Companies

'California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive,' Gov. Gavin Newsom said in a statement.

California Governor Gavin Newsom signed a law Monday, Sept. 29, aimed at enhancing online safety and establishing guardrails for artificial intelligence (AI).

According to the California Governor’s office, The Transparency in Frontier Artificial Intelligence Act, or SB 53, imposes new AI-specific regulations on companies, establishes transparency requirements, and establishes a framework for reporting AI-related safety incidents.

“California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive,” Newsom said in a statement.

“This legislation strikes that balance,” he added. “AI is the new frontier in innovation, and California is not only here for it—but stands strong as a national leader by enacting the first-in-the-nation frontier AI safety legislation that builds public trust as this emerging technology rapidly evolves.”

What California’s AI Law Could Mean Globally

As NBC reports, California’s new law could have significant ramifications globally, as 32 of the world’s top 50 AI companies are based in the Golden State.

According to Newsom, the legislation follows a report he requested from a group of world-leading AI academics and experts on “sensible AI guardrails, based on an empirical, science-based analysis of the capabilities and attendant risks of frontier models.”

The report included recommendations on ensuring evidence-based policymaking, striking a balance between the need for transparency and considerations such as security risks, and determining the appropriate level of regulation in the evolving industry. SB 53 is responsive to the recommendations in the report.

“With a technology as transformative as AI, we have a responsibility to support that innovation while putting in place commonsense guardrails to understand and reduce risk. With this law, California is stepping up, once again, as a global leader on both technology innovation and safety,” said State Senator Scot Wiener (D-San Francisco), who authored the legislation.