"The legislation does not take into account whether an AI system is deployed in high-risk environments, involves critical decision-making, or uses sensitive data," said Newsom. "I do not believe this is the best approach to protecting the public from real threats posed by the technology."
Silicon Valley's influence was evident as major tech companies like OpenAI and venture capital firms like A16z expressed strong opposition. Newsom faced intense lobbying, highlighting the pressure from the tech industry.
Supporters viewed the legislation as a chance for California to lead AI regulation, especially with Congress slow to act, believing it could set a national precedent.
Newsom's veto aligns with warnings about the risks of overregulation stifling AI development, arguing that strict controls could undermine California's economic competitiveness in the tech sector.
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