California\u2019s tech companies, the epicenter of the state\u2019s economy, sent politicians a loud message this year: Back down from restrictive artificial intelligence regulation or they\u2019ll leave.<\/p>\n
The tactic appeared to have worked, activists said, because some politicians weakened or scrapped guardrails to mitigate AI\u2019s biggest risks.<\/p>\n
California Gov. Gavin Newsom rejected a bill aimed at making companion chatbots safer for children after the tech industry fought it. In his veto message, the governor raised concerns about placing broad limits on AI, which has sparked a massive investment spree and created new billionaires overnight around the San Francisco Bay Area.<\/p>\n
Assembly Bill 1064 would have barred companion chatbot operators from making these AI systems available to minors unless the chatbots weren\u2019t \u201cforeseeably capable\u201d of certain conduct, including encouraging a child to engage in self-harm. Newsom said he supported the goal, but feared it would unintentionally bar minors from using AI tools and learning how to use technology safely.<\/p>\n
\u201cWe cannot prepare our youth for a future where AI is ubiquitous by preventing their use of these tools altogether,\u201d he wrote in his veto message.<\/p>\n
The bill\u2019s veto was a blow to child safety advocates who had pushed it through the state Legislature and a win for tech industry groups that fought it. In social media ads, groups such as TechNet had urged the public to tell the governor to veto the bill because it would harm innovation and lead to students falling behind in school.<\/p>\n
Organizations trying to rein in the world\u2019s largest tech companies as they advance the powerful technology say the tech industry has become more empowered at the national and state levels.<\/p>\n
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.<\/p>\n
In Sacramento, AI companies have lobbied behind the scenes for more freedom. California\u2019s 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 are also 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. <\/p>\n
\u201cWe believe California can strike a better balance between protecting consumers and enabling responsible technological growth,\u201d Robert Boykin, TechNet\u2019s executive director for California and the Southwest, said in a statement. <\/p>\n
Common Sense Media founder and Chief Executive Jim Steyer said tech lobbyists put tremendous pressure on Newsom to veto AB 1064. Common Sense Media, a nonprofit that rates and reviews technology and entertainment for families, sponsored the bill.<\/p>\n
\u201cThey threaten to hurt the economy of California,\u201d he said. \u201cThat\u2019s the basic message from the tech companies.\u201d<\/p>\n
Advertising is among the tactics tech companies with deep pockets use to convince politicians to kill or weaken legislation. Even if the governor signs a bill, companies have at times sued to block new laws from taking effect.<\/p>\n
\u201cIf you\u2019re really trying to do something bold with tech policy, you have to jump over a lot of hurdles,\u201d said David Evan Harris, senior policy advisor at the California Initiative for Technology and Democracy, which supported AB 1064. The group focuses on finding state-level solutions to threats that AI, disinformation and emerging technologies pose to democracy.<\/p>\n
Tech companies have threatened to move their headquarters and jobs to other states or countries, a risk looming over politicians and regulators. <\/p>\n
The California Chamber of Commerce, a broad-based business advocacy group that includes tech giants, launched a campaign this year that warned over-regulation could stifle innovation and hinder California.<\/p>\n