A brewing battle over AI

Inside the Golden State political arena

Feb 12, 2024 View in browser   By Lara Korte and Dustin Gardiner PLAYBOOK PLEA: We know you’re used to us telling you what’s important — now it’s your turn. We want to hear from our California Playbook readers about the issues that matter to them. Please take a few minutes and fill out this survey. It’s a chance to shape the first thing you read every day. This photo illustration shows the ChatGPT logo at an office in Washington, DC, on March 15, 2023. | Stefani Reynolds/AFP/Getty Images THE BUZZ: A new California proposal would enact the nation’s toughest rules for the development of artificial intelligence — and tech groups are already picking it apart. State Sen. Scott Wiener’s Senate Bill 1047 would require large AI models to undergo safety testing and take cybersecurity measures before developers deploy them. In the absence of congressional action, such policies could set the tone for the entire industry. It represents a pivotal moment in the race to regulate AI, and the immediate pushback it received from a prominent tech group — that it would hinder startups, stifling competition — could be a harbinger of a tough battle in the Legislature. The San Francisco Democrat's bill would only apply to massive AI models that operate on a scale so large they don’t even exist yet. But they will arrive sooner than people think, the lawmaker warned in an interview. "With more powerful models also comes safety risks, cyber security risks, weapons of mass destruction, and other risks that we need to get ahead of and mitigate,” Wiener said. He and other regulation-minded colleagues have warned that policymakers can’t make the same mistake with AI as they did with social media: waiting too long to rein in harmful effects. But industry interests zeroed in on a technical provision of the bill specifying that only new large-scale models would have to undergo safety certification. Those developed off existing models, known as derivatives, wouldn’t require a new round of testing. That creates a sea of red tape for newcomers, said Todd O’Boyle, senior director of technology policy at Chamber of Progress, a trade industry group founded by a former Google executive whose funders include Amazon, Apple, Cruise, and Waymo. The group swiftly condemned Wiener’s bill, calling it a “blow to competition.” O’Boyle said such “differential treatment” puts an unfair burden on startups. "Our concern is that this bill, however well-intentioned, is going to limit the equitable distribution of AI models of technology and innovation,” he said. The tech lobby is becoming an increasingly potent force in Sacramento and can draw on the homegrown industry's vast resources to thwart or water down regulatory efforts like Wiener's. But California lawmakers — and many labor groups — are keen on placing guardrails on artificial intelligence, and polling shows public concern about AI, especially as it relates to job replacement, is growing. Wiener described his legislation, which points to existing industry standards like those from the National Institute of Standards and Technology, as a reasonable set of regulations for a technology that will soon have massive global influence. O’Boyle and others have praised a provision of the bill that would establish a publicly-funded AI research hub allowing startups, researchers, and community groups to participate in the development of large-scale AI systems. Such a center could quickly get expensive for the state, but Wiener, who was just named Senate Budget chair, said he hopes to find some funding for it this year. Wiener has spent months working to head off opposition, and said he’s taken extensive steps to loop in all players as the bill took shape. The legislation is co-sponsored by Center For AI Safety Action Fund, Encode Justice, and Economic Security California. Tech companies might have deep pockets and an aversion to heavy regulation, but Wiener said he’s prepared to work with any opponents — and that he would have “an open door.” "There are times when these business associations just take a harder post, but there are other times when we can work together,” he said. "I want to get it right." GOOD MORNING. Happy Monday. Thanks for waking up with Playbook. We'd like to extend our sincerest sympathies to all the heartbroken 49ers fans. Cheers to a game well-played! Now you can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts now. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte WHERE’S GAVIN? Back from Las Vegas after the Super Bowl. FOR GOOD MEASURE California Gov. Gavin Newsom speaks during a Clean California event in San Francisco, on Nov. 9, 2023. | Jeff Chiu/AP TAXING TACTIC — Let's say you're trying to kill a ballot measure. Maybe you've tried to make the initiative harder to pass with your own, rival ballot initiative. Perhaps you've asked the Supreme Court to simply strip it from the ballot. While you're waiting on the results of those plays, have you considered calling out the funders? That was the approach this weekend from Gov. Gavin Newsom, legislative leaders, and powerful allies like unions and the California Medical Association. They signed full-page advertisements, in the SF Chronicle and the LA Times, urging the members and funders of the California Business Roundtable to renounce the Roundtable's initiative erecting barriers to higher taxes and fees. What’s the idea? According to Newsom’s former chief of staff and campaign consultant Jim DeBoo, who’s not formally part of the opposition campaign but is familiar with the thinking, said it’s about trying to fracture the roundtable — or at least force its constituents to take sides. “I think what’s happened with the Roundtable is they seem, in this case, to be out of step with a large portion of the business community,” DeBoo asserted. Business Roundtable Rob Lapsley dismissed the ads as another attempt to circumvent the will of financially strained voters, assailing Newsom and allies in a statement Sunday for “doing everything possible to keep the voters of California from having the right to vote on all new and higher taxes” and “disenfranchising the rights of the one million Californians” who signed petitions to qualify the initiative. — Jeremy B. White Nothing distinguishes policymaking in California like its lively realm of ballot-measure campaigns. As part of POLITICO’s ongoing California expansion, we are embarking on an initiative of our own — to cover this sphere with the depth and sustained attention it deserves. We are building a team of journalists dedicated solely to covering ballot measures at all levels, and are brimming with ideas for how to tell fresh stories about the strategies, policy ideas, personalities, and money behind them. Expect scoops, analysis, features and investigations across our POLITICO California platforms, including here under the “For Good Measure” banner in our California Playbook editions.   CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So, we have something cool for you: our California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Cut through the jargon and get the latest developments in California as lawmakers and industry leaders adapt to the changing climate. Subscribe now.     CAMPAIGN YEAR SF SHOWDOWN — San Francisco’s woes have fueled a national narrative of Democratic dysfunction. A cluster of moderate, tech-funded political groups is looking to change course this election year by ousting progressives on the San Francisco Democratic Party and Board of Supervisors, criticizing judges and passing initiatives to overhaul city government. The effort’s leaders, funders, and activists say they’re merely channeling the frustrations of fed-up San Franciscans. Their progressive foes see a billionaire-funded hostile takeover that extends a long history of moneyed centrists seeking to control the city. Jeremy B. White took a deep dive. ON THE AIR OWNING THE AIRWAVES — The primary race for California’s Senate seat has been a blowout — at least on the airwaves. Democratic Rep. Adam Schiff, who also holds a comfortable lead in polls, has spent $20.4 million on advertising buys, according to data from Ad Impact. That’s more than double what the other two major Democrats in the race, Reps. Katie Porter and Barbara Lee have spent, combined, on ads — with Lee in a very distant third place. Meanwhile, Republican and former Dodgers star Steve Garvey seems to be betting big on his name ID because he’s not even trying to compete on the tube. BARKING BACK — Democratic House candidate Will Rollins has launched his first TV ad of the cycle, punching back at Republican Rep. Ken Calvert after the incumbent released an ad calling Rollins “soft on crime.” Rollins skewered Calvert in a spot released over the weekend titled “Guilty Dog.” The ad references a 1993 incident when police caught Calvert with a prostitute in his car. “It’s always the guilty dog that barks the loudest,” a narrator states. The spot also highlights Rollins’ career as a former federal prosecutor. Calvin Moore, a spokesperson for Calvert’s campaign, said the ad is a rehash of attacks Democrats have waged against the Republican representative for decades. “It’s the same failed playbook Rollins tried the last time,” he said. The contest for CA-41 is a rematch from 2022, when Calvert beat Rollins by about four percentage points. Both parties are spending heavily to compete for the swing seat in the Riverside County district, which includes Palm Springs. And the latest ad battle suggests it will be bruising.   CONGRESS OVERDRIVE: Since day one, POLITICO has been laser-focused on Capitol Hill, serving up the juiciest Congress coverage. Now, we’re upping our game to ensure you’re up to speed and in the know on every tasty morsel and newsy nugget from inside the Capitol Dome, around the clock. Wake up, read Playbook AM, get up to speed at midday with our Playbook PM halftime report, and fuel your nightly conversations with Inside Congress in the evening. Plus, never miss a beat with buzzy, real-time updates throughout the day via our Inside Congress Live feature. Learn more and subscribe here.     ON THE AGENDA BATTER UP — California’s four leading Senate candidates will again take the stage tonight for a debate, this time, at the KRON 4 News TV studio in San Francisco. The show is moderated by Inside California Politics hosts Frank Buckley and Nikki Laurenzo. Tune in at 7 p.m. to catch all the action between Democratic Reps. Adam Schiff, Katie Porter, and Barbara Lee, and retired Republican baseball star Steve Garvey.  Top Talkers — Independent expenditure groups backed by unions, businesses and other interests are spending gobs of money to influence LA City Council races. (Los Angeles Times) — Many concession workers at the Super Bowl in Las Vegas earned meager wages, as little as $13 per hour. It’s a far cry from the decent-paying jobs that Nevada lawmakers promised when they built Allegiant Stadium to lure the Raiders from Oakland. (San Francisco Chronicle) — The San Francisco Chronicle’s editorial board endorsed Nancy Pelosi for another term representing the City by the Bay, but lamented her focus on national issues, rather than those in her district. (San Francisco Chronicle) — The atmospheric rivers that have pummeled Calfironia in recent winters have turned parts of the coast into extreme sports destinations for kitesurfers. (Los Angeles Times) PLAYBOOKERS PUT A RING ON IT — Tom Del Beccaro, a lawyer and conservative commentator and former chair of the California GOP, recently proposed to Nicole Ginis, a booking producer at Newsmax. Pic — Ian Blue, director of member relations at the Wine Institute and a Rep. Mike Thompson (D-Calif.) alum, and Meredith Hassett, VP of content strategy at Peacock, got engaged at home in Los Angeles last month. The couple celebrated their engagement the following day skiing with friends in Telluride. Pic BIRTHDAYS — Ben Sherwood … former Rep. Gil Cisneros (D-Calif.) … Ryan Beiermeister … (was Saturday):  Bob Iger … Jayne Abess … (was Friday): Deborah Hertz … Abbe Goldman   CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com.   Follow us on Twitter Dustin Gardiner @dustingardiner Lara Korte @lara_korte POLITICO California @politicoca   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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