Press Release
Source: The Recorder/Law.com
Press Release
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
09.04.24
In a recent article in The Recorder and Law.com, Jeewon Serrato, the leader of Pillsbury’s Consumer Protection team and a leader in the firm’s Global AI Task Force, commented on pending legislation in California that would require the largest generative AI developers to ensure their products will not cause significant physical or financial harm.
That legislation, SB 1047, has passed both houses of the state legislature and is pending before Governor Gavin Newsom. The debate over the precedent-setting bill pits those who believe regulations are necessary to safeguard the emerging technologies and those who fear that regulation will stifle innovation.
Among other key features, the bill would require developers to hire an auditor to ensure compliance with safety requirements by 2026. Those auditors’ reports would then be shared on demand with the attorney general, who could sue for any violations. According to The Recorder, the legislation would also protect whistleblowers who warn authorities about developers’ non-compliance.
“What I believe we have is a version of the bill that it seems like nobody likes,” said Serrato, who is based in San Francisco. “The consumer advocacy groups are saying it’s not strong enough because too many amendments have been adopted. And the industry is continuing to share criticism of the law, saying that it does more harm than good.”
Serrato added that if the bill is signed into law some developers may decide they can’t stomach the risk of continuing to operate in California, much like some bowed out of the Golden State and the European Union when each enacted sweeping privacy regulations.
“I feel like this law could have similar consequences,” she said.
To read more about this legislation and other AI bills pending in California, please see here.