California Governor Newsom vetoes AI safety bill, arguing it’s ‘not the best approach’

In a significant move, California Governor Gavin Newsom vetoed a highly contested artificial intelligence (AI) safety bill on Sunday, citing concerns over its potential to stifle innovation and impose excessive restrictions on AI technologies, including basic functions.

Newsom’s decision to veto Senate Bill 1047, which would have required safety testing and imposed stringent standards on advanced AI models, came after tech giants like Google, Meta, and OpenAI raised concerns that the bill could hamper AI innovation in the state and possibly push companies to relocate.

“While well-intentioned, SB 1047 (The AI Bill)  does not take into account whether an AI system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data,” Newsom said in a statement.

“Instead,” he added, “the bill applies stringent standards to even the most basic functions — so long as a large system deploys it. I do not believe this is the best approach to protecting the public from real threats posed by the technology.”

Newsom emphasized that while the bill was well-intentioned, it failed to differentiate between high-risk AI systems and those with less impact on public safety.

The bill, authored by Democratic State Senator Scott Wiener, sought to mandate safety testing for the most advanced AI models, particularly those costing more than $100 million to develop or requiring significant computing power. It also proposed creating a state entity to oversee “Frontier Models” — highly advanced AI systems that could pose a greater risk due to their capabilities.

Besides, the bill also required developers to implement a “kill switch” to deactivate models that pose a threat and to undergo third-party audits to verify their safety practices.

Proponents such as Senator Wiener argued that voluntary commitments from AI developers were insufficient and that enforceable regulations were necessary to protect the public from potential AI-related harm.

Senator Scott Wiener expressed disappointment, arguing that the lack of enforceable AI safety standards could put Californians at risk as AI systems continue to advance at a rapid pace.

“This veto is a setback for everyone who believes in oversight of massive corporations that are making critical decisions that affect the safety and welfare of the public and the future of the planet,” Senator Wiener said in a statement.

Wiener had earlier stated that voluntary commitments from AI companies were insufficient to ensure public safety, calling the veto a setback in efforts to hold powerful AI systems accountable.

“While the large AI labs have made admirable commitments to monitor and mitigate these risks, the truth is that voluntary commitments from industry are not enforceable and rarely work out well for the public,” Wiener added.

Earlier this month the California State Assembly had passed the bill only to go to Newsom to approve or veto.

Expanding the horizon

While Governor Newsom vetoed the AI bill, he also balanced the veto by announcing a series of new initiatives aimed at protecting Californians from the risks posed by fast-developing generative AI (GenAI) technology, the statement added.

The Governor has signed 17 bills related to generative AI technology, covering areas like AI-generated misinformation, deepfake prevention, AI watermarking, and protecting children and workers from harmful AI applications.

According to Newsom, this legislative package is the most comprehensive set of AI regulations in the country.

“We have a responsibility to protect Californians from potentially catastrophic risks of Gen AI deployment. We will thoughtfully — and swiftly — work toward a solution that is adaptable to this fast-moving technology and harnesses its potential to advance the public good,” Newsom said in the statement.

Among the new measures, Newsom has tasked California’s Office of Emergency Services (Cal OES) with expanding its assessment of risks posed by GenAI to the state’s critical infrastructure. This includes energy, water, and communications systems, to prevent mass casualty events. In the coming months, Cal OES will conduct risk assessments in collaboration with AI companies that develop frontier models and with infrastructure providers across various sectors.

Additionally, Newsom has directed state agencies to engage with leading AI experts to develop “empirical, science-based trajectory analysis” for AI systems, with a focus on high-risk environments.

He also announced plans to work closely with labor unions, academic institutions, and private sector stakeholders to explore the use of Gen AI technology in workplaces, ensuring that AI tools can benefit workers while maintaining safety and fairness.

Newsom’s veto and subsequent announcements underscore the state’s complex position as both a leader in AI innovation and a regulator of potentially disruptive technologies. While tech industry leaders, including Microsoft, OpenAI, and Meta, have opposed the bill, others, like Tesla CEO Elon Musk, have supported the bill, emphasizing the need for more stringent AI safeguards. OpenAI’s chief strategy officer Jason Kwon in a letter to Senator Weiner said the bill would “stifle innovation.”

The controversy surrounding AI regulation in California reflects broader national and global concerns about the impact of AI on society. As federal legislation on AI safety stalls in Congress, California’s actions are being closely watched by policymakers and industry leaders alike.

Despite vetoing SB 1047, Newsom signaled that further AI legislation could be on the horizon.

“A California-only approach may well be warranted — especially absent federal action by Congress,” Newsom said in the statement, leaving open the possibility of revisiting AI safety measures in future legislative sessions.