California senator proposes ethical guidelines for AI contractors in the state
The California State Senator Steve Padilla (D) introduced two bills — Senate Bill 892 and 893 — on Jan. 3 which aim to create a “safe and ethical framework” for artificial intelligence (AI) service providers working in the state.
The first of the two, Senate Bill 892, would require California’s Department of Technology to establish standards of safety, privacy and nondiscrimination for AI services within the state.
If passed, starting from Aug. 1, 2025, Padilla’s bill would prohibit the state from entering into any contract that deals with AI services if the provider of said services did not meet the laid out standards.
Senate Bill 893 would require the Government Operations Agency, the Governor’s Office of Business and Economic Development and the Department of Technology to establish an AI research hub within the state.
According to Padilla’s proposal, “the hub should further the research, development, deployment, and application of AI technology for the public good.”
Related: California governor calls for statewide generative AI training
“We are proud of California’s heritage as a center for technological vision and enforcing ethical, safe standards [...] But we cannot allow a few monopolies to control the future of AI. This is a public good that must benefit all in our society, and we must make public investments to prevent a few billionaires controlling our future.”
However, he said the proposed legislation would help stop a monopoly of a few companies controlling the future of AI. “This is a public good that must benefit all in our society,” he said, “and we must make public investments to prevent a few billionaires controlling our future.”
These two bill proposals follow a recent initiative from the California governor, Gavin Newsom, calling for statewide generative AI training for California residents statewide.
In September 2023, Assembly member Ash Kalra introduced a bill intended to protect actors, artists and entertainers by mandating employment contracts to include informed consent regarding digital AI replications.
All of these developments come around the executive order issued by the Biden Administration for new federal AI safety standards. The executive order laid out six standards for AI safety and security and its ethical usage within the government.
The vagueness of the executive order sparked concern among industry insiders that it would present challenges for companies developing the technology.
Given that California is home to the fabled Silicon Valley and many of the AI-forward companies developing in the space, Padilla's bill could spark similar concerns. However, no official documents have yet been published.
Padilla’s proposed measure will be heard and voted on in the Senate later this year. Cointelegraph reached out to the office of Senator Padilla for comment on the proposed legislation.
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Article was co-written by Savannah Fortis
