AI Law: Hollywood Takes on Silicon Valley

Actress and union president Fran Drescher, director J.J. Abrams, actress Jessica Alba, Alec Baldwin and more than 100 other Hollywood figures called on Newsom to support SB 1047 in an open letter. It has already passed the California Senate and House of Representatives, and — the letter states — has the support of Californians as well. “So why hasn’t the governor passed the bill?”

The bill would include safeguards against catastrophic effects of AI, tech portal The Verge writes. The largest AI developers, all based in Silicon Valley, would have to implement safeguards to reduce the chances that their AI model could spark or enable disasters like a major cyberattack or pandemic. Companies like ChatGPT developer OpenAI would be held liable for such impacts, the LA Times writes.

This decision will have consequences at the United States level.

The Verge also writes that the approval would make the law a nationwide requirement in the United States, where the largest IT companies are based. Unlike the European Union, China, and Great Britain, the United States is far behind in regulating AI. Newsom has until the end of the month to approve the law and thus set the direction in which the United States moves in the field of artificial intelligence.

Governor questions organization

It’s still unclear exactly what Newsom will decide. In a recent interview, he indicated that he was cautious because the law could severely limit California’s competitiveness. That fear also played a significant role in regulation in the European Union.

At the same time, the Democrat signed two bills that would help Hollywood, of all things, when it comes to artificial intelligence — for example, on the sensitive question of whether and how actors can be replaced by AI. This was also one of the reasons behind the months-long strike in Hollywood last year.

The bill is also controversial within the party.

Hollywood stars have expressed their gratitude for Newsom’s commitment in the open letter, but now it’s not about “protecting artists.” Now everyone should be protected. However, the law, introduced by a Democrat, is highly controversial within the Democratic Party: former House Speaker Nancy Pelosi is a vocal critic of the law. San Francisco’s Democratic mayor, London Breed, also opposes the law.

In addition to the powerful actor union, the bill also has the support of the Service Employees International Union, The Verge reports. In addition, more than a hundred former employees of large AI companies like OpenAI are behind the project. And there’s another unlikely supporter: Elon Musk. “For over 20 years, I’ve advocated for regulating AI, just as we regulate any product or technology that poses a potential risk to the public,” Musk wrote on his X messaging service.

Musk also serves on an organization that warns of catastrophic risks from AI. However, it’s unclear how realistic these scenarios are, which could now become law. Critics warn that such laws could distract from the current risks posed by AI, such as the widespread spread of misinformation.

A historic decision for Newsom himself.

In the coming days, the Democratic governor will have to decide which of his state’s two most prominent industries to support. The Verge writes that the two sectors are increasingly politically divided. Some IT billionaires may support Republican presidential candidate Donald Trump — especially since he has spoken out against stricter regulations.

Hollywood, on the other hand, is almost unanimously behind Democratic nominee Kamala Harris — and California Gov. Newsom. Notable figures like Abrams, Mark Hamill, and Alyssa Milano have all backed Newsom’s campaign and are now signatories to the open letter. It could also point to the path Newsom himself will take when it comes to AI.