Business
California lawmakers are trying to regulate AI before it's too late. Here's how
For four years, Jacob Hilton worked for one of the most influential startups in the Bay Area — OpenAI. His research helped test and improve the truthfulness of AI models such as ChatGPT. He believes artificial intelligence can benefit society, but he also recognizes the serious risks if the technology is left unchecked.
Hilton was among 13 current and former OpenAI and Google employees who this month signed an open letter that called for more whistleblower protections, citing broad confidentiality agreements as problematic.
“The basic situation is that employees, the people closest to the technology, they’re also the ones with the most to lose from being retaliated against for speaking up,” says Hilton, 33, now a researcher at the nonprofit Alignment Research Center, who lives in Berkeley.
California legislators are rushing to address such concerns through roughly 50 AI-related bills, many of which aim to place safeguards around the rapidly evolving technology, which lawmakers say could cause societal harm.
However, groups representing large tech companies argue that the proposed legislation could stifle innovation and creativity, causing California to lose its competitive edgeand dramatically change how AI is developed in the state.
The effects of artificial intelligence on employment, society and culture are wide reaching, and that’s reflected in the number of bills circulating the Legislature . They cover a range of AI-related fears, including job replacement, data security and racial discrimination.
One bill, co-sponsored by the Teamsters, aims to mandate human oversight on driver-less heavy-duty trucks. A bill backed by the Service Employees International Union attempts to ban the automation or replacement of jobs by AI systems at call centers that provide public benefit services, such as Medi-Cal. Another bill, written by Sen. Scott Wiener (D-San Francisco), would require companies developing large AI models to do safety testing.
The plethora of bills come after politicians were criticized for not cracking down hard enough on social media companies until it was too late. During the Biden administration, federal and state Democrats have become more aggressive in going after big tech firms.
“We’ve seen with other technologies that we don’t do anything until well after there’s a big problem,” Wiener said. “Social media had contributed many good things to society … but we know there have been significant downsides to social media, and we did nothing to reduce or to mitigate those harms. And now we’re playing catch-up. I prefer not to play catch-up.”
The push comes as AI tools are quickly progressing. They read bedtime stories to children, sort drive through orders at fast food locations and help make music videos. While some tech enthusiasts enthuse about AI’s potential benefits, others fear job losses and safety issues.
“It caught almost everybody by surprise, including many of the experts, in how rapidly [the tech is] progressing,” said Dan Hendrycks, director of the San Francisco-based nonprofit Center for AI Safety. “If we just delay and don’t do anything for several years, then we may be waiting until it’s too late.”
Wiener’s bill, SB1047, which is backed by the Center for AI Safety, calls for companies building large AI models to conduct safety testing and have the ability to turn off models that they directly control.
The bill’s proponents say it would protect against situations such as AI being used to create biological weapons or shut down the electrical grid, for example. The bill also would require AI companies to implement ways for employees to file anonymous concerns. The state attorney general could sue to enforce safety rules.
“Very powerful technology brings both benefits and risks, and I want to make sure that the benefits of AI profoundly outweigh the risks,” Wiener said.
Opponents of the bill, including TechNet, a trade group that counts tech companies including Meta, Google and OpenAI among its members, say policymakers should move cautiously . Meta and OpenAI did not return a request for comment. Google declined to comment.
“Moving too quickly has its own sort of consequences, potentially stifling and tamping down some of the benefits that can come with this technology,” said Dylan Hoffman, executive director for California and the Southwest for TechNet.
The bill passed the Assembly Privacy and Consumer Protection Committee on Tuesday and will next go to the Assembly Judiciary Committee and Assembly Appropriations Committee, and if it passes, to the Assembly floor.
Proponents of Wiener’s bill say they’re responding to the public’s wishes. In a poll of 800 potential voters in California commissioned by the Center for AI Safety Action Fund, 86% of participants said it was an important priority for the state to develop AI safety regulations. According to the poll, 77% of participants supported the proposal to subject AI systems to safety testing.
“The status quo right now is that, when it comes to safety and security, we’re relying on voluntary public commitments made by these companies,” said Hilton, the former OpenAI employee. “But part of the problem is that there isn’t a good accountability mechanism.”
Another bill with sweeping implications for workplaces is AB 2930, which seeks to prevent “algorithmic discrimination,” or when automated systems put certain people at a disadvantage based on their race, gender or sexual orientation when it comes to hiring, pay and termination.
“We see example after example in the AI space where outputs are biased,” said Assemblymember Rebecca Bauer-Kahan (D-Orinda).
The anti-discrimination bill failed in last year’s legislative session, with major opposition from tech companies. Reintroduced this year, the measure initially had backing from high-profile tech companies Workday and Microsoft, although they have wavered in their support, expressing concerns over amendments that would put more responsibility on firms developing AI products to curb bias.
“Usually, you don’t have industries saying, ‘Regulate me’, but various communities don’t trust AI, and what this effort is trying to do is build trust in these AI systems, which I think is really beneficial for industry,” Bauer-Kahan said.
Some labor and data privacy advocates worry that language in the proposed anti-discrimination legislation is too weak. Opponents say it’s too broad.
Chandler Morse, head of public policy at Workday, said the company supports AB 2930 as introduced. “We are currently evaluating our position on the new amendments,” Morse said.
Microsoft declined to comment.
The threat of AI is also a rallying cry for Hollywood unions. The Writers Guild of America and the Screen Actors Guild-American Federation of Television and Radio Artists negotiated AI protections for their members during last year’s strikes, but the risks of the tech go beyond the scope of union contracts, said actors guild National Executive Director Duncan Crabtree-Ireland.
“We need public policy to catch up and to start putting these norms in place so that there is less of a Wild West kind of environment going on with AI,” Crabtree-Ireland said.
SAG-AFTRA has helped draft three federal bills related to deepfakes (misleading images and videos often involving celebrity likenesses), along with two measures in California, including AB 2602, that would strengthen worker control over use of their digital image. The legislation, if approved, would require that workers be represented by their union or legal counsel for agreements involving AI-generated likenesses to be legally binding.
Tech companies urge caution against overregulation. Todd O’Boyle, of the tech industry group Chamber of Progress, said California AI companies may opt to move elsewhere if government oversight becomes overbearing. It’s important for legislators to “not let fears of speculative harms drive policymaking when we’ve got this transformative, technological innovation that stands to create so much prosperity in its earliest days,” he said.
When regulations are put in place, it’s hard to roll them back, warned Aaron Levie, chief executive of the Redwood City-based cloud computing company Box, which is incorporating AI into its products.
“We need to actually have more powerful models that do even more and are more capable,” Levie said, “and then let’s start to assess the risk incrementally from there.”
But Crabtree-Ireland said tech companies are trying to slow-roll regulation by making the issues seem more complicated than they are and by saying they need to be solved in one comprehensive public policy proposal.
“We reject that completely,” Crabtree-Ireland said. “We don’t think everything about AI has to be solved all at once.”
Business
How We Cover the White House Correspondents’ Dinner
Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.
Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
Business
MrBeast company sued over claims of sexual harassment, firing a new mom
A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.
The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.
“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.
Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.
Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.
In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”
When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”
Paez refuted the claim.
“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.
Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”
“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.
When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”
At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”
In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.
In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”
In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.
Mavromatis alleges that she was demoted and then fired.
Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.
Business
Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO
Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.
Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.
The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.
“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.
Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.
Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.
The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.
“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”
Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.
Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.
Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.
“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”
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