Senator Steve Padilla (D-San Diego) proposed new legislation in the form of Senate Bills 892 and 893 to establish a robust and ethical AI framework in California, according to a Jan. 3 press release.
The proposed rules mark a significant step toward harnessing AI’s potential while ensuring its safe and responsible use, particularly in state contracts.
Double-edged sword
Senator Padilla said that the dual nature of AI is a source of both promise and challenge and needs to be addressed accordingly. He added that past lapses in tech regulation, particularly in social media, should be a cautionary tale for AI governance.
Padilla said:
“We cannot repeat that disaster by allowing a handful of tech billionaires to operate AI without oversight, accountability, or restraint.”
The proposed bills are in response to the growing influence of AI, which is poised to be the most transformative technology since the dawn of the Digital Age.
While AI offers immense benefits, its unchecked integration into daily life poses significant risks, necessitating comprehensive safeguards and standards.
Legal and AI experts, including Karl Manheim, Professor Emeritus at Loyola Law School, support Padilla’s initiative. Manheim noted the current “regulatory vacuum” in AI development and lauded the bills for positioning California as a leader in AI safety and innovation.
Meanwhile, former National Security Advisor Robert C. O’Brien said the U.S. needs to consider public investment in AI infrastructure to maintain a competitive edge against countries like China that have made significant financial commitments to the AI industry.
He added that the bills will create the foundation for public money to flow into AI-related infrastructure.
Senate bills 892 and 893
Senate Bill 892 proposes the establishment of safety, privacy, and nondiscrimination standards for AI services by the Department of Technology.
Beginning Aug. 1, 2025, it will prohibit the state from contracting with AI service providers who do not meet these standards.
Meanwhile, Senate Bill 893 aims to leverage California’s economic influence by reimagining AI services as a public asset. This involves creating the California AI Research Hub in collaboration with academic institutions.
The Hub will focus on AI research, development, and deployment for public benefit, ensuring privacy and addressing societal risks.
Senator Padilla stressed the importance of AI as a public good, necessitating public investments to prevent monopolistic control over AI’s future. He said:
“This is a public good that must benefit all in our society.”
The bills will be discussed in the Senate in the upcoming year, potentially setting a precedent for AI regulation and development in California, across the United States, and globally.
Assad Jafri
AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
News Desk
CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.
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