California has become the first U.S. state to impose comprehensive AI safety and transparency rules with Governor Gavin Newsom signing SB 53 into law. The legislation requires major AI companies such as OpenAI, Anthropic, Meta, and Google DeepMind to disclose their safety measures and protects whistleblowers reporting unsafe practices.
SB 53 also sets up a system for reporting serious AI-related incidents to the California Office of Emergency Services, including autonomously committed crimes like cyberattacks and deceptive AI behaviour. These reporting obligations go beyond those in the EU AI Act, reflecting California’s stronger regulatory stance.
The bill has divided the tech industry. While Anthropic supports it, Meta and OpenAI opposed the measure, with OpenAI urging Newsom not to sign it. This comes amid notable spending by Silicon Valley firms on pro-AI political action committees seeking lighter regulation.
Other states, including New York, are monitoring California’s approach, with similar bills awaiting approval.
“California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive,” Newsom said.
Newsom is also considering SB 243, which regulates AI chatbots by requiring safety protocols and holding operators accountable for failures. SB 53 represents Senator Scott Wiener’s second AI safety bill after his broader proposal was vetoed last year. This time, Wiener worked closely with AI companies to refine the legislation.
California’s new law could set a precedent for future AI regulations, balancing innovation with public safety as AI adoption expands swifty.