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Matthew Schruers President & CEO at Computer & Communications Industry Association | Official website

Gov. Newsom vetoes controversial AI bill amid broader legislative actions

California Governor Gavin Newsom has vetoed a controversial artificial intelligence bill that would have held developers accountable for unforeseen uses of technology. The decision was made to focus on the actual bad actors rather than the developers. Earlier this month, Newsom signed several key pieces of legislation, including AB 2655, AB 2355, and AB 2839, aimed at mitigating the impacts of AI-generated election-related deepfakes. He also signed SB 976, which seeks to restrict features available to younger users on social media without parental consent.

Newsom's veto of SB 1047 is part of broader executive action on various AI bills centered on individual rights of publicity and digital replicas, as well as responsibilities for labeling and taking down election-related deepfakes.

The Computer & Communications Industry Association (CCIA) supports safe AI innovation through voluntary measures proposed by the White House and the National Institute of Standards and Technology (NIST). CCIA opposed SB 1047 and requested Gov. Newsom to veto it because it holds developers responsible for unforeseen uses of technology instead of focusing on bad actors.

Khara Boender, CCIA State Policy Director who has testified on several California bills related to AI watermarking, provenance requirements, and standards, stated: "We agree with many others who have cited concerns with the legislation, such as potential stifling of the burgeoning artificial intelligence industry. We commend Gov. Newsom for vetoing this heavy-handed and misguided AI legislation that would have far-reaching effects likely to impact the broader tech ecosystem, including startups. While we certainly agree that such technologies should be developed responsibly and ethically, this bill would not sufficiently provide such protections while still allowing innovation to thrive."

Boender also appreciated Newsom's veto of AB 3048: "CCIA appreciates that Gov. Newsom vetoed AB 3048 — the proposed law would have undermined user choice and created uncertainty and challenging compliance questions for businesses operating in multiple jurisdictions."

Regarding SB 976 aimed at protecting minors online, Boender expressed disappointment: "CCIA understands that certain heightened online protections may be appropriate for minors, and we are disappointed that Gov. Newsom signed SB 976. The law effectively mandates that online services only provide minors with chronological feeds rather than personalization which would help give younger users more relevant and age-appropriate content."

On addressing online election disinformation through AB 2655, Boender raised concerns about technical feasibility and constitutionality: "While CCIA acknowledges the legitimate concerns raised by lawmakers and constituents regarding online election disinformation and misinformation, AB 2655 raises significant concerns regarding technical feasibility and constitutionality. The law risks over-labeling, over-blocking and potential suppression of political speech."

Boender supported executive action on AB 2355: "We support Gov. Newsom’s executive action on AB 2355 which will ensure that covered committees provide clear disclosures for content generated or ‘substantially altered’ by AI. The approach employed under AB 2355 still allows for other beneficial uses of AI without imposing requirements that otherwise risk chilling online political speech."