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California has become a leader in AI regulation with the enactment of Senate Bill 53, the “Transparency in Frontier Artificial Intelligence Act.” Signed into law by Governor Gavin Newsom, the bill mandates greater transparency and accountability from large AI companies operating within the state.

SB 53 compels these companies to disclose their safety and security protocols, provide whistleblower protections to their employees, and share relevant information with the public. A key provision allows both AI companies and the public to report potential safety incidents to the California Office of Emergency Services, enabling swift response and mitigation. The California Department of Technology is tasked with providing annual recommendations for updates to the law, ensuring its continued relevance and effectiveness.

The new law has elicited mixed responses within the AI industry. While some companies initially expressed concerns that SB 53 could hinder innovation and drive businesses away from California, others have voiced support. Anthropic, for example, endorsed the bill after negotiations. Meta, however, has actively sought to influence AI legislation in the state through the creation of a super PAC. OpenAI also engaged in lobbying efforts against the bill, highlighting the ongoing debate surrounding AI regulation.