State rejects AI safety laws as firms threaten exit

Safeguards, from A1

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GOV. GAVIN NEWSOM has rejected a bill aimed at making companion chatbots safer for youths after the tech industry fought the plan.

(JUSTIN SULLIVAN Getty Images)

“We cannot prepare our youth for a future where AI is ubiquitous by preventing their use of these tools altogether,” he wrote in his veto message.

The bill’s veto was a blow to child safety advocates who pushed it through the state Legislature and a win for tech industry groups that fought it. In social media ads, groups such as TechNet urged the public to tell the governor to veto the bill because it would harm innovation and lead to students falling behind in school.

Organizations trying to rein in the world’s largest tech companies as they advance the powerful technology say the tech industry has become more empowered at the national and state levels.

Meta, Google, OpenAI, Apple and other major tech companies have strengthened their relationships with the Trump administration. Companies are funding new organizations and political action committees to push back against state AI policy while pouring money into lobbying.

In Sacramento, AI companies have lobbied behind the scenes for more freedom. California’s massive pool of engineering talent, tech investors and companies make it an attractive place for the tech industry, but companies are letting policymakers know that other states also are interested in attracting those investments and jobs. Big Tech is particularly sensitive to regulations in the Golden State because so many companies are headquartered there and must abide by its rules.

“We believe California can strike a better balance between protecting consumers and enabling responsible technological growth,” Robert Boykin, TechNet’s executive director for California and the Southwest, said in a statement.