Senator Steve Padilla (D-San Diego) has proposed new legislation in the form of Senate Bills 892 and 893 to establish a robust and ethical AI framework in California, according to a January 3 press release.
The proposed rules are an important step towards harnessing the potential of AI and ensuring its safe and responsible use, especially in state contracts.
Double-edged sword
Senator Padilla said the dual nature of AI is a source of both promise and challenge and must be addressed accordingly. He added that previous failures in technology regulation, particularly in social media, should be a cautionary tale for AI governance.
Padilla said:
“We cannot repeat that disaster by allowing a handful of technology billionaires to use AI without oversight, responsibility or restraint.”
The proposed bills are a response to the growing influence of AI, which is poised to become the most transformative technology since the dawn of the digital age.
While AI offers enormous benefits, its uncontrolled integration into everyday life carries significant risks, necessitating extensive safeguards and standards.
Legal and AI experts, including Karl Manheim, professor emeritus at Loyola Law School, support Padilla’s initiative. Noting the current “regulatory vacuum” in AI development, Manheim praised the bills for positioning California as a leader in AI safety and innovation.
Meanwhile, former National Security Advisor Robert C. O’Brien said the US should consider public investments in AI infrastructure to maintain a competitive advantage over countries like China that have made significant financial commitments to the AI industry.
He added that the bills will lay the foundation for the flow of public money into AI-related infrastructure.
Senate Bills 892 and 893
Senate Bill 892 proposes the establishment of security, privacy and non-discrimination standards for AI services by the Department of Technology.
From August 1, 2025, the state will prohibit contracts with AI service providers that do not meet these standards.
Meanwhile, Senate Bill 893 aims to leverage California’s economic clout by reimagining AI services as a public good. This includes creating the California AI Research Hub in collaboration with academic institutions.
The hub will focus on AI research, development and implementation for the public good, safeguarding privacy and addressing societal risks.
Senator Padilla emphasized the importance of AI as a public good, requiring public investments to avoid monopolistic control over the future of AI. He said:
“This is a public good that everyone in our society should benefit from.”
The bills will be debated in the Senate in the coming year, potentially setting a precedent for AI regulation and development in California, across the United States and globally.
