The Safe and Secure Innovation for Frontier Artificial Intelligence Models Act (SB 1047) was seen by many as a necessary safeguard on the technology’s development. Generative AI covers systems that produce new content in text, video, images and music – often in response to questions, or “prompts”, by a user.

But Newsom said the bill risked “curtailing the very innovation that fuels advancement in favour of the public good”. While agreeing the public needs to be protected from threats posed by the technology, he argued that SB 1047 was not “the best approach”.

What happens in California is so important because it is the home of Silicon Valley. Of the world’s top 50 AI companies, 32 are currently headquartered within the state. California’s legislature therefore has a unique role in efforts to ensure the safety of AI-based technology.

But Newsom’s decision also reflects a deeper question: can innovation and safety truly coexist, or do we have to sacrifice one to advance the other?

California’s tech industry contributes billions of dollars to the state’s economy and generates thousands of jobs. Newsom, along with prominent tech investors such as Marc Andreessen, believes too many regulations could slow down AI’s growth. Andreessen praised the veto, saying it supports “economic growth and freedom” over excessive caution.

However, rapidly advancing AI technologies could bring serious risks, from spreading disinformation to enabling sophisticated cyberattacks that could harm society. One of the significant challenges is understanding just how powerful today’s AI systems have become.

Generative AI models, like OpenAI’s GPT-4, are capable of complex reasoning and can produce human-like text. AI can also create incredibly realistic fake images and videos, known as deepfakes, which have the potential to undermine trust in the media and disrupt elections. For example, deepfake videos of public figures could be used to spread disinformation, leading to confusion and mistrust.

AI-generated misinformation could also be used to manipulate financial markets or incite social unrest. The unsettling part is that no one knows exactly what’s coming next. These technologies open doors for innovation – but without proper regulation, AI tools could be misused in ways that are difficult to predict or control.

Traditional methods of testing and regulating software fall short when it comes to generative AI tools that can create artificial images or video. These systems evolve in ways that even their creators can’t fully anticipate, especially after being trained on vast amounts of data from interactions with millions of people, such as ChatGPT.

SB 1047 sought to address this concern by requiring companies to implement “kill switches” in their AI software that can deactivate the technology in the even of a problem. The law would also have required them to create detailed safety plans for any AI project with a budget over US$100 million (£77.2m).

Critics said the bill was too broad, meaning it could affect even lower-risk projects. But its main goal was to set up basic protections in an industry that’s arguably moving faster than lawmakers can keep up with.

California as a global leader

What California decides could affect the world. As a global tech leader, the state’s approach to regulating AI could set a standard for other countries, as it has done in the past. For example, California’s leadership in setting stringent vehicle emissions standards through the California Consumer Privacy Act (CCPA), and its early regulation of self-driving cars, have influenced other states and countries to adopt similar measures.

But by vetoing SB 1047, California may have sent a message that it’s not ready to lead the way in AI regulation. This could leave room for other countries to step in – countries that may not care as much as the US about ethics and public safety.

Tesla’s CEO, Elon Musk, had cautiously supported the bill, acknowledging that while it was a “tough call”, it was probably a good idea. His stance shows that even tech insiders recognise the risks AI poses. This might be a sign the industry is ready to work with policymakers on how best to regulate this new breed of technology.

The notion that regulation automatically stifles innovation is misleading. Effective laws can create a framework that not only protects people, but allows AI to grow sustainably. For example, regulations can help ensure that AI systems are developed responsibly, with considerations for privacy, fairness and transparency. This can build public trust, which is essential for the widespread adoption of AI technologies.

The future of AI doesn’t have to be a choice between innovation and safety. By implementing reasonable safeguards, we can unlock the full potential of AI while keeping society safe. Public engagement is crucial in this process. People need to be informed about AI’s capabilities and risks to participate in shaping policies that reflect society’s values.

The stakes are high and AI is advancing rapidly. It’s time for proactive action to ensure we reap the benefits of AI without compromising our safety. But California’s killing of the AI bill also raises a wider question on the increasing power and influence of tech companies, given they raised objections that subsequently led to its veto.

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The kickoff event featured prominent figures from various news organizations, including Inland Empire Community News, KVCR Public Media, Black Voice News, and Frontline Observer, among others. The highlight of the event was a keynote address by Paulette Brown-Hinds, PhD, Chair of the Journalism Innovation Hub+ Fund and Publisher of Black Voice News.

“Both media and philanthropy play a crucial role in advancing a multi-racial democracy and serving the public good. I’ve been particularly excited by philanthropy’s response to the crisis in local news media,” Brown-Hinds said. “As a fund, we are focused on the future, committed to building a stronger news ecosystem by thinking creatively about improving the civic health of our region through community engagement and solutions reporting on vital conditions for thriving communities.”

The Journalism Innovation Hub+ Fund is designed to support innovations in community news, expand reporting on essential conditions, and invest in sustainable models for local news and civic information. The initiative aims to combine philanthropic efforts to enhance impact, connect donors and funders committed to amplifying community voices, and foster more active, informed communities.

The fund’s establishment comes at a critical time. Since the explosion of the pandemic in early 2020, at least 85 local newsrooms in the U.S. have closed. Others have barely remained in operation, cutting staff, salaries, and work hours. About 1,800 newspapers have shut down across the country since 2004. These closures have left many communities as “news deserts,” lacking reliable local news sources.

“Study after study shows how local news fosters informed communities and civic engagement,” Brown-Hinds continued. “We are proud to announce that the Inland Empire has become one of the first regional chapters in California to benefit from this initiative.”

The event also featured remarks from Dean Baquet, former editor-in-chief of The New York Times, who emphasized the critical role of local journalism in maintaining a healthy democracy. “There is an absolute crisis in local news,” Baquet stated. “I’ve visited newsrooms that once had hundreds of journalists and now have just a handful. Collaborative journalism is the way forward. None of these news organizations have the resources to do big investigative stories alone, but together, we can.”

Baquet, who reported on cases of corruption and money laundering between 1990 and 1995, also discussed the need for news organizations to move forward from competitors to collaborators. “Competition was good for journalism when we could do it, but it can’t be sustained anymore. It’s time for us to collaborate to survive and thrive.”

During the Q&A session, Evan Sanford, executive director of the Redlands Area Chamber of Commerce, asked Baquet about his thoughts on whether there are two sides to every story. Baquet responded, “No. There’s no two sides to racism and anti-Semitism. Some stories do have two sides, but most don’t.”

Baquet highlighted the importance of embracing technology in journalism. “We should not run away from tech,” he said. “While there are challenges, there are also tremendous opportunities. Newsrooms must learn to drive change and adapt to the fast-paced demands of the digital age.”

The Journalism Innovation Hub+ Fund aims to support local journalism through collaborative reporting, resources, and innovative solutions. By fostering partnerships and investing in media infrastructure, the initiative seeks to ensure the long-term sustainability of local news and bolster civic engagement.

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