California has moved a step further to begin regulating artificial intelligence through a progressive piece of legislation meant to protect the use of Artificial Intelligence and also to regulate how the technology is deployed. The California AI Accountability Act, passed by both the state’s legislative house and the senate, would oblige firms that produce or implement “high risk” AI models to complete a risk review before introducing the systems to the public.

As for high risk, the bill states these are AI systems that can lead to death or bodily harm, infringement of civil liberties or that affect vital facilities. According to the proposed law, the firm would need to indicate the possible risks that may arise from the use of AI and how they plan to address the same while preparing and submitting quarterly reports to the newly created California AI Safety Office.

The office would have powers of auditing the AI systems and penalise whoever is in non-compliance with the law. Supporters of the bill have said that it is a good compromise because on one had it encourages innovation while on the other it ensures safety of the public.

The Golden State has long been a technology pioneer, and now it’s at the vanguard of making tech adoption and technological invention not just safe but moral as well, according to State Senator Maria Rodriguez, the bill’s sponsor.

While the tech industry has had a chance to react to this bill, reaction was mixed at best. While some of the key players such as Google and Microsoft have offered restrained endorsement, others have pointed at possible excessive regulation as a deterrent to innovation.

The Internet Association, a lobbying group that counts many of the largest tech companies as members, released a statement calling on Governor Gavin Newsom to veto the bill, saying it could push AI work out of California.

Nonetheless, the consumer advocacy and civil rights organizations have welcomed the legislation saying that it is important to protect consumers from potential risks posed by the developing AI technology.

But with Governor Newsom’s approval, California would become the first state in the nation with comprehensive AI rules. The bill is being passed at a time when the society is becoming worried about the effects of sophisticated artificial intelligence systems in the society such as risk of unemployment, fake news among others.

Specialists note that the experience of California can become a basis for the regulation of federal, which has been so far quite restrained. The White House released a set of best practices for artificial intelligence, but to date it does not regulate it in any way, and the demands for mandatory regulation have become louder in recent months.

Specifically, the California AI Accountability Act would be set to take effect from January, 2025 to allow companies time to come up with ways of how to meet the required standards. Some of the issues that the bill seeks to provide for are periodic review and updating of the regulations to reflect the advances in technology.

Since California hosts many of the biggest players in the AI field, including those from Silicon Valley, the strategy of regulating this industry may affect the development of AI worldwide. The bill is now going to Governor Newsom’s desk, and the world will wait to see if it will mark a new chapter in California’s regulation of AI.