California lawmakers recently voted to advance legislation that would require artificial intelligence companies to test their systems and add safety measures to prevent them from being potentially manipulated to wipe out the state’s electric grid or help build chemical weapons — scenarios that experts say could be possible in the future as technology evolves at warp speed, according to the Associated Press.
The bill, SB 1047, specifically requires developers of large AI models to conduct safety tests to reduce the risks of “catastrophic harm” from their technology. The term “catastrophic harm” is defined as a cyberattack that causes at least $500 million in damage, or mass casualties. In addition, AI developers also must ensure their AI can be shut down by a human if it starts behaving dangerously.
It is worth noting that the regulatory requirements imposed under SB 1047 would only apply to AI systems that cost more than $100 million in computing power to train. As of August 2024, there are no current AI models that meet this threshold.
SB 1047 was passed by California’s Senate and two of the state’s Assembly committees. It now makes its way for full Assembly consideration, according to the Wall Street Journal.
AI Agency Regulations May Be Forthcoming
In addition to legislative initiatives by the state assembly, the California Privacy Protection Agency (CPPA) recently voted to advance a rule package that would impact how businesses utilize AI and collect personal information of consumers, workers, and students. The proposed package of AI rules would seek to establish guidelines when AI is used to make determinations as to:
- Employment compensation, demotion, and opportunity;
- Housing;
- Insurance;
- Health care; and
- Academics
For example, under the proposed AI rules, if an employer uses AI to make predictions about a person’s emotional state or personality during a job interview, a job candidate would have the right to opt out without fear of discrimination for choosing to do so.
The proposed AI rules would also obligate businesses to notify people before using an AI tool or application in the above-listed contexts. If people agree to the use an AI service or tool, businesses must respond to requests by individuals about how the business uses their personal information with their AI application to make predictions. The rules would also require employers or third-party contractors to carry out risk assessments to evaluate the performance of their technology.
Have Questions About the Potential Litany of AI Regulations in California? Contact A Highly Experienced Business Lawyer in Los Angeles Today
It appears more likely than not that the use of AI tools and applications could be subject to new regulatory requirements in the near future. If your business is concerned about complying with these potential regulations, the Hakim Law Group is here to help.
If you need advice or guidance on how to improve your company’s compliance posture with the proposed AI regulations and legislation, then you should consider retaining the services of an experienced business lawyer in Los Angeles. The Hakim Law Group features a team of skilled and highly reputable business attorneys in Los Angeles who have worked at top-tier international law firms and served as general counsel to major companies. This high level of diverse legal and business experience is paramount to our boutique approach.
For additional information or to schedule an appointment, please contact The Hakim Law Group at 310-993-2203 or visit www.HakimLawGroup.com to learn more.
