In recent weeks, California lawmakers have passed a series of AI-related bills impacting both developers and residents across the state. Cointelegraph spoke with Haynes and Boone, LLP Partner Dina Blikshteyn who explained what the new rules could mean for future development, smaller developers and disaster prevention measures.
Read an excerpt below:
The bill is facing backlash from developers of all sizes within the industry, who say it stifles innovation. Cointelegraph spoke with Dina Blikshteyn, a partner at the legal firm Haynes Boone, to understand just how that could happen.
Blikshteyn said that the bill could also extend to small developers fine-tuning AI models with computing power greater or equal to three times 10^25 integer or FLOP and can afford a $10-million access.
“The bill aims to prevent disasters caused by AI models, particularly through the implementation of shutdown capabilities,” she said.
“However, it may not fully eliminate risks, as an AI model could trigger a chain reaction with harmful consequences even after shutdown.”
She also pointed out: “While the bill’s intent is positive, the requirements for safety protocols, audits, and compliance reports might be seen as excessive, potentially imposing burdensome disclosure and bureaucratic demands that could hinder innovation in California’s AI industry.”
The United States currently has no federal framework in place for regulating the outputs of AI models; however, Blikshteyn points out that states like California and Colorado are enacting their own regulations. …
“The larger AI companies would have more manpower to handle the bill’s requirements,” she pointed out, “which may be considered a drain on the smaller company’s resources.”
“While large AI companies are unlikely to leave California, the variation in state laws and lack of federal oversight could push smaller developers to relocate or conduct AI work in states with fewer regulations on AI governance.”
Nonetheless, Blikshteyn highlights what many in the industry see as a truth: “Legislation on a federal level that sets basic requirements for powerful AI models would be beneficial for both consumers and developers. It would also provide a baseline for all states as to what those requirements are.”
