California’s AI Bills Pose Threat to Smaller Developers

  • California has been introducing strategic bills to regulate artificial intelligence (AI).

  • Lawyer Dina Blikshteyn hints at the potential impacts of the AI bills that may stifle innovations.

  • Though focused on large-scale developers, the bill could be burdensome for smaller developers.

California has been at the forefront to establish robust regulatory measures for artificial intelligence (AI) technology. Over the past few days, the state has introduced strategic bills to govern the AI space, sparking debates. According to lawyer Dina Blikshteyn, who is a partner at the legal firm Haynes Boone, the bills may impact small developers despite their well-intentioned goals.

SB 1047 and AB 3211 Bills

Two major AI bills proposed by California are SB-1047 and AB 3211. AB 3211, also known as the ‘Watermark’ bill, requires AI companies to add a digital watermark for AI content to distinguish it from human-made content. The bill envisions transparency in the digital space amidst increasing scams and other fraudulent activities.

At the same time, SB 1047 mandates that large AI developers take responsibility for their projects’ potential threats. While AI giants like Open AI opposed SB 1047, they endorsed the Watermark bill. Meanwhile, leading figures like Elon Musk and Vitalik Buterin supported the SB 1047 bill.

AI Bills To Stifle Innovation 

Lawyer Blikshteyn hinted at a possible impact of the SB 1047 bill, broader than initially thought. As per her assessment, though the bill targets large-scale developers, it could also affect smaller developers. She added,

The bill aims to prevent disasters caused by AI models, particularly through the implementation of shutdown capabilities. However, it may not fully eliminate risks, as an AI model could trigger a chain reaction with harmful consequences even after shutdown.

While the US currently doesn’t hold a federal framework for regulating the AI models, states like California and Colorado are taking their initiatives to bring forward new regulations. As per the lawyer, the bills, especially SB 1047, may potentially impose “burdensome disclosure and bureaucratic demands” hindering AI innovations in the states.

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