California Legislature Considers Bill to Strangle AI Innovation: SB 1047 Reviewed

California Legislators Close to Passing Bill that Could Hinder AI Innovation

In a move that could drastically impact the future of artificial intelligence (AI) innovation, California legislators are on the verge of passing Senate Bill 1047, also known as the “Safe and Secure Innovation for Frontier Artificial Intelligence Models Act.” This bill has the potential to stifle innovation and create barriers for technological advancements in a field that holds global significance.

While the authors of the bill acknowledge the potential benefits of AI, they have proposed a regulatory regime that would require permission from the state for any new AI models, treating them as potentially dangerous until proven otherwise. This could hinder the progress of technology by forcing it to move at the pace of bureaucracy.

If passed, the bill would establish a new regulatory agency, the Frontier Model Division (FMD), with sweeping authority to define which AI models could cause or enable critical harm. The FMD would also have the power to impose fees on companies seeking approval, essentially creating a tax on new AI models.

One of the major concerns with SB 1047 is its arbitrary definition of a “covered model,” based on computing power and cost. As AI technology continues to advance, smaller companies may find themselves exceeding these thresholds, leading to unnecessary hurdles in their development process.

Furthermore, the bill would require developers to build a “kill switch” into their models, granting the FMD the authority to shut them down if deemed necessary. Additionally, developers of open-source AI models would face increased scrutiny, potentially facing fines if their models are misused by bad actors.

Critics of the bill argue that such heavy-handed regulations could stifle innovation and create AI monopolies controlled by Big Tech companies. The open-source ecosystem, which provides transparency and competition, could be greatly impacted by this legislation.

As the United States aims to remain competitive in the global AI race, it is essential to regulate AI applications based on a rational assessment of risk rather than fear. Existing laws can address individualized risks without the need for a new regulatory framework that may hinder innovation.

With so much of AI development taking place in California, the repercussions of passing SB 1047 could extend beyond the state’s borders, potentially pushing innovation overseas. It is crucial for policymakers to consider the long-term consequences of stifling AI innovation and the impact it could have on the country’s technological advancement.