Governor Newsom Signs First in the Nation AI Transparency Bill

California has approved a new law that sets a national precedent for how large artificial intelligence companies must operate. Governor Gavin Newsom signed Senate Bill 53, adding a fresh layer of transparency and accountability in the AI sector.

Good to know

• SB 53 requires companies like OpenAI, Meta, Anthropic, and Google DeepMind to disclose safety protocols.
• The law establishes whistleblower protections for employees.
• A system will allow both companies and the public to report critical AI safety incidents.

Under SB 53, major AI labs must share information about the steps they take to keep their models safe. They are also required to report any serious incidents, such as cyberattacks committed without human involvement or deceptive actions by AI models that go beyond current European Union rules.

The legislation also gives workers in these companies added protections if they raise concerns, ensuring that people who speak out about risks are not punished.

Mixed Reactions From Tech Companies

Reaction across Silicon Valley has been divided. Meta and OpenAI both lobbied against the bill, with OpenAI even publishing an open letter to Governor Newsom urging him not to sign. Anthropic, however, endorsed the measure.

The industry has often warned that state-by-state regulation could create complications for companies that operate globally. Still, advocates of SB 53 argue that some safeguards are needed before AI systems grow too powerful to manage responsibly.

A First in the Nation

Newsom framed the law as a balanced approach:

“California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive. This legislation strikes that balance. AI is the new frontier in innovation, and California is not only here for it — but stands strong as a national leader by enacting the first-in-the-nation frontier AI safety legislation that builds public trust as this emerging technology rapidly evolves.”

Other states are already watching closely. Lawmakers in New York passed a similar proposal that now awaits action from Governor Kathy Hochul.

The law comes during a period when tech executives are spending heavily on political campaigns. Leaders at OpenAI and Meta recently supported super PACs designed to back candidates who prefer lighter regulation of artificial intelligence. SB 53 highlights the growing tension between policymakers and industry leaders over how fast and how freely AI should be allowed to develop.

There is More

Another bill, SB 243, has also landed on Newsom’s desk. That proposal focuses on AI companion chatbots, requiring clear safety measures and holding developers legally responsible if the technology causes harm.

Senator Scott Wiener, who introduced SB 53, described it as a revised effort after his earlier AI bill, SB 1047, was vetoed last year following heavy pushback. This time, Wiener worked with AI firms to make the legislation more acceptable while still adding new safeguards.