SB 53, the AI security and transparency invoice that California Gov. Gavin Newsom signed into regulation this week, is proof that state regulation doesn’t should hinder AI progress.
So says Adam Billen, vice chairman of public coverage at youth-led advocacy group Encode AI, on in the present day’s episode of Fairness.
“The truth is that coverage makers themselves know that we’ve to do one thing, they usually know from engaged on 1,000,000 different points that there’s a method to move laws that genuinely does shield innovation — which I do care about — whereas ensuring that these merchandise are protected,” Billen instructed TechCrunch.
At its core, SB 53 is a first-in-the-nation invoice that requires massive AI labs to be clear about their security and safety protocols — particularly round how they stop their fashions from catastrophic dangers, like getting used to commit cyberattacks on crucial infrastructure or construct bio-weapons. The regulation additionally mandates that firms keep on with these protocols, which will probably be enforced by the Workplace of Emergency Companies.
“Firms are already doing the stuff that we ask them to do on this invoice,” Billen instructed TechCrunch. “They do security testing on their fashions. They launch mannequin playing cards. Are they beginning to skimp in some areas at some firms? Sure. And that’s why payments like this are necessary.”
Billen additionally famous that some AI corporations have a coverage round stress-free security requirements below aggressive stress. OpenAI, for instance, has publicly said that it might “modify” its security necessities if a rival AI lab releases a high-risk system with out comparable safeguards. Billen argues that coverage can implement firms’ present security guarantees, stopping them from reducing corners below aggressive or monetary stress.
Whereas public opposition to SB 53 was muted in comparability to its predecessor SB 1047, which Newsom vetoed final 12 months, the rhetoric in Silicon Valley and amongst most AI labs has been that nearly any AI regulation is anathema to progress and can in the end hinder the U.S. in its race to beat China.
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It’s why firms like Meta, VCs like Andreessen Horowitz, and highly effective people like OpenAI president Greg Brockman are collectively pumping a whole bunch of thousands and thousands into tremendous PACs to again pro-AI politicians in state elections. And it’s why those self same forces earlier this 12 months pushed for an AI moratorium that may have banned states from regulating AI for 10 years.
Encode AI ran a coalition of greater than 200 organizations to work to strike down the proposal, however Billen says the combat isn’t over. Senator Ted Cruz, who championed the moratorium, is trying a brand new technique to attain the identical objective of federal preemption of state legal guidelines. In September, Cruz launched the SANDBOX Act, which might permit AI firms to use for waivers to briefly bypass sure federal laws for as much as 10 years. Billen additionally anticipates a forthcoming invoice establishing a federal AI customary that may be pitched as a middle-ground answer however would in actuality override state legal guidelines.
He warned that narrowly scoped federal AI laws may “delete federalism for a very powerful expertise of our time.”
“In the event you instructed me SB 53 was the invoice that may change all of the state payments on every part associated to AI and all the potential dangers, I’d let you know that’s most likely not an excellent concept and that this invoice is designed for a specific subset of issues,” Billen mentioned.
Whereas he agrees that the AI race with China issues, and that policymakers have to enact regulation that may assist American progress, he says killing state payments — which primarily give attention to deepfakes, transparency, algorithmic discrimination, kids’s security, and governmental use of AI — isn’t the way in which to go about doing that.
“Are payments like SB 53 the factor that may cease us from beating China? No,” he mentioned. “I feel it is simply genuinely intellectually dishonest to say that that’s the factor that may cease us within the race.”
He added: “If the factor you care about is thrashing China within the race on AI — and I do care about that — then the stuff you would push for are stuff like export controls in Congress,” Billen mentioned. “You’ll guarantee that American firms have the chips. However that’s not what the trade is pushing for.”
Legislative proposals just like the Chip Safety Act goal to stop the diversion of superior AI chips to China by means of export controls and monitoring gadgets, and the present CHIPS and Science Act seeks to spice up home chip manufacturing. Nevertheless, some main tech firms, together with OpenAI and Nvidia, have expressed reluctance or opposition to sure features of those efforts, citing considerations about effectiveness, competitiveness, and safety vulnerabilities.
Nvidia has its causes — it has a powerful monetary incentive to proceed promoting chips to China, which has traditionally represented a good portion of its world income. Billen speculated that OpenAI may maintain again on chip export advocacy to remain within the good graces of essential suppliers like Nvidia.
There’s additionally been inconsistent messaging from the Trump administration. Three months after increasing an export ban on superior AI chips to China in April 2025, the administration reversed course, permitting Nvidia and AMD to promote some chips to China in change for 15% of the income.
“You see folks on the Hill shifting in the direction of payments just like the Chip Safety Act that may put export controls on China,” Billen mentioned. “Within the meantime, there’s going to proceed to be this propping up of the narrative to kill state payments which are really fairly mild powerful.”
Billen added that SB 53 is an instance of democracy in motion — of trade and policymakers working collectively to get to a model of a invoice that everybody can agree on. It’s “very ugly and messy,” however “that strategy of democracy and federalism is the complete basis of our nation and our financial system, and I hope that we are going to maintain doing that efficiently.”
“I feel SB 53 is likely one of the greatest proof factors that that may nonetheless work,” he mentioned.
This text was first printed on October 1.
