California Governor Gavin Newsom has signed SB 53, a first-in-the-nation bill that sets new transparency requirements for large AI companies. The bill, which passed the state legislature two weeks ago, requires major AI labs such as OpenAI, Anthropic, Meta, and Google DeepMind to be transparent about their safety protocols. It also ensures whistleblower protections for employees at those companies.
Additionally, SB 53 creates a mechanism for AI companies and the public to report potential critical safety incidents to California’s Office of Emergency Services. Companies must also report incidents related to crimes committed without human oversight, such as cyberattacks, and deceptive behavior by a model, which are requirements not found in the EU AI Act.
The bill has received mixed reactions from the AI industry. Tech firms have broadly argued that state-level AI policy risks creating a patchwork of regulation that would hinder innovation. However, Anthropic endorsed the bill, while Meta and OpenAI lobbied against it. OpenAI even wrote and published an open letter to Governor Newsom discouraging him from signing SB 53.
This new legislation comes as some of Silicon Valley’s tech elite have poured hundreds of millions of dollars into super PACs to back candidates who support a light-touch approach to AI regulation. Leaders at OpenAI and Meta have recently launched pro-AI super PACs aimed at supporting candidates and bills that are friendly to AI.
Other states may look to California for inspiration as they attempt to curb the potential harms caused by the rapid advancement of this powerful emerging technology. In New York, a similar bill was passed by state lawmakers and is awaiting Governor Kathy Hochul’s signature or veto.
Governor Newsom said in a statement that California has proven it can establish regulations to protect communities while ensuring the growing AI industry continues to thrive. He stated that the legislation strikes that balance, calling AI the new frontier in innovation and positioning California as a national leader with this first-in-the-nation frontier AI safety legislation that builds public trust.
The governor is also considering another bill, SB 243, which passed both the State Assembly and Senate with bipartisan support this month. That bill would regulate AI companion chatbots, requiring operators to implement safety protocols and holding them legally accountable if their bots fail to meet those standards.
SB 53 is Senator Scott Wiener’s second attempt at an AI safety bill after Governor Newsom vetoed his more sweeping SB 1047 last year amid major pushback from AI companies. For this bill, Wiener reached out to major AI companies to help them understand the changes he made to the legislation.