Gov. Newsom Vetoes Controversial AI Bill w/ Dean Ball & Sam Hammond

10/03/24 • 63 min

On September 29th, Governor Newsom vetoed SB 1047, a controversial bill aimed at heading off catastrophic risks of large AI models. We previously covered the bill on The Dynamist in episode 64. In a statement, Newsom cited the bill’s “stringent standards to even the most basic functions” and said he does “not believe this is the best approach to protecting the public from real threats posed by the technology.” Senator Scott Wiener, the bill’s author, responded, “This veto leaves us with the troubling reality that companies aiming to create an extremely powerful technology face no binding restrictions from U.S. policymakers[.]”

The bill had passed the California senate back in August by a vote of 30-9, having been the subject of fierce debate between AI companies big and small and researchers and advocates who fear a catastrophic AI event. Proponents want to get ahead of AI cyberattacks, AI weapons development, or doomsday scenarios by making developers liable to implement safety protocols. Opponents argue that the bill will stifle innovation in California, calling it an “assault on open source” and a “harm to the budding AI ecosystem.”

Aside from the merits of the legislation, it is arguably the first major political fight over AI in the U.S. where competing interests fought all the way to the governor’s desk, attempting to sway the pen of Governor Newsom. The story featured a cast of characters from California Democrats like Nancy Pelosi to billionaires like Elon Musk to major companies like Google and OpenAI. What does this battle say about who holds sway in emerging AI politics? What are the factions and alignments? And what does this all mean for next year in California and beyond?

Evan is joined by Sam Hammond, Senior Economist at FAI and author of the Substack Second Best, and Dean Ball, a research fellow at the Mercatus Center, author of the Substack Hyperdimensional, and a non-resident fellow at FAI.

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A ‘Public Option’ for the Gig Economy? w/Wingham Rowan

Since the advent of platforms like Uber, Instacart, and DoorDash, the so-called gig economy has been intertwined with technology. While the apps no doubt created loads of opportunity for people seeking flexible work on their own schedules, they have been lambasted by critics who say they don’t provide drivers and grocery shoppers with a minimum wage and health benefits.

This tech-labor debate has largely played out in state legislatures and in the courts. Voters have weighed in as well, with gig companies DoorDash and Lyft spending some $200 million to win the Prop 22 ballot initiative in California that exempted their workers from new labor laws. Should Uber be forced to provide benefits to employees? Should government stay out and let these markets continue to operate?

As labor leaders and progressive lawmakers continue to battle with the companies, and governments, companies, and unions struggle to apply old principles to an increasingly digital economy, some argue for a third way, including our guest today. Wingham Rowan is the founder and managing director of Modern Markets for All, a non-profit that develops infrastructure for people working outside of traditional 9-5 jobs. Prior to that, he was a TV host and producer at the BBC. Read more about his work at PeoplesCapitalism.org.

Next Episode

Tech Coup: Has Silicon Valley Become A Shadow Government? w/ Marietje Schaake

Have tech companies become more powerful than governments? As the size and reach of firms like Google and Apple have increased, there is growing concern that these multi-trillion dollar companies are too powerful and have started replacing important government functions.

The products and services of these tech giants are ubiquitous and pillars of modern life. Governments and businesses increasingly rely on cloud services like Microsoft Azure and Amazon Web Services to function. Elon Musk's Starlink has provided internet access in the flood zones of North Carolina and the battlefields of Ukraine. Firms like Palantir are integrating cutting-edge AI into national defense systems.

In response to these rapid changes, and resulting concerns, regulators in Europe and the U.S. have proposed various measures—from antitrust actions to new legislation like the EU's AI Act. Critics warn that overzealous regulation could stifle the very innovation that has driven economic growth and technological advancement, potentially ceding Western tech leadership to China. Others, like our guest, argue that these actions to rein in tech don’t go nearly far enough, and that governments must do more to take back the power she says that tech companies have taken from nation states.

Evan and Luke are joined by Marietje Schaake, a former MEP and current fellow at Stanford’s Cyber Policy Center. She is the author of The Tech Coup: How to Save Democracy from Silicon Valley. You can read her op-ed in Foreign Affairs summarizing the book.