The California State Legislature approved the Artificial Intelligence (AI) bill, SB 1047 on Wednesday, 22 May. The bill was introduced by Senator Scott Wiener on 7 February. According to the official page, the bill “seeks to ensure the safe development of large-scale artificial intelligence systems by establishing clear, predictable, common-sense safety standards for developers of the largest and most powerful AI systems. These duties do not apply to startups developing less potent models. The bill also invests in the future of California’s AI industry by establishing CalCompute, a public cloud computing cluster that will allow startups, researchers, and community groups to participate in the development of large-scale AI systems.”
“Large-scale artificial intelligence has the potential to produce an incredible range of benefits for Californians and our economy – from advances in medicine and climate science to improved wildfire forecasting and clean power development,” says Senator Wiener. “It also gives us an opportunity to apply hard lessons learned over the last decade, as we’ve seen the consequences of allowing the unchecked growth of new technology without evaluating, understanding, or mitigating the risks. SB 1047 does just that, by developing responsible, appropriate guardrails around development of the biggest, most high-impact AI systems to ensure they are used to improve Californians’ lives, without compromising safety or security.”
“SB 1047 will also promote the growth of the AI industry by establishing CalCompute, a public AI research cluster that will allow startups, researchers, and community groups to participate in the development of large-scale AI systems. By providing a broad range of stakeholders with access to the AI development process, CalCompute will help align large-scale AI systems with the values and needs of California communities.” Senator Wiener added
Senator Scott Wiener shared the news of the approval of the bill on X.
The Senate passed our AI safety & innovation bill, SB 1047.
— Senator Scott Wiener (@Scott_Wiener) May 22, 2024
SB 1047 promotes innovation & ensures developers of the largest, most powerful AI models keep safety in mind.
I look forward to continuing to work with all stakeholders to make sure this bill is as good as it can be. pic.twitter.com/nthkzTrPlG
Upon approval of the bill, many leaders and entrepreneurs from the AI niche shared their commentary.
Replying to Senator Wiener’s post on X, Joe Lonsdale, founder of Palantir (NYSE:PLTR) – a firm engaged in AI development, slammed the legislation.
Wow, this is even more insane than the other new CA law we were just mocking.
— Joe Lonsdale (@JTLonsdale) May 22, 2024
I guess it would be convenient for me if you passed this, as I wouldn’t have to fly back to CA from Texas to work on AI anymore?! https://t.co/GAF9ZrAiQJ pic.twitter.com/jdYgf7j6rp
“Wow, this is even more insane than the other new CA law we were just mocking.” said Joe
“I guess it would be convenient for me if you passed this, as I wouldn’t have to fly back to CA from Texas to work on AI anymore?!” Joe added
Sharing his views, Arto Bendiken, CTO and co-founder at Haltia.AI, said the bill is a bureaucratic nightmare.
“California’s SB 1047 is a prime example of how well-intentioned regulations can morph into a bureaucratic nightmare. These excessive requirements are practically impossible for startups to meet, and risk stifling innovation in its infancy. The financial penalties for non-compliance only exacerbate the issue, potentially deterring groundbreaking ideas before they even take flight.”
Haltia.AI is headquartered in Delaware and has an operating subsidiary in the UAE. The company aims to revolutionize industries and enhance quality of life through AI solutions.
Talal Thabet, CEO and co-founder of Haltia.AI, opined that SB 1047 would strangle innovation, and also suggested that UAE is the strongest alternative for AI development.
“California’s AI regulations are strangling innovation in its crib. The UAE, on the other hand, is a breath of fresh air. Here, startups can focus on what truly matters: pushing the boundaries of AI and developing solutions that will shape the future. That’s one of the many reasons why I’ve chosen Dubai as my homebase for the past 23 years. It’s a launchpad, not a labyrinth.” said Thabet
