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
Waymo reports teen riders for bad behavior and delivers them to the police
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
Business
Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination
At the Supreme Court, the unfounded fear of boys masquerading as girls in youth sports rolled the clock back on gender equality.
On the surface, the Supreme Court’s June 30 opinion upholding state laws barring transgender girls from women’s and girl’s sports teams looks like a victory for women’s rights.
The 6-3 opinion by Justice Brett M. Kavanaugh certainly presents itself that way. “Females and males have inherent physical differences relevant to athletic performance,” Kavanaugh wrote. “Therefore, in contact sports, forcing female athletes to compete against males can create significant safety risks.” He also asserted that “forcing female athletes to compete against males can undermine competitive fairness.”
The ruling applied to prohibitions enacted in Idaho and West Virginia against “biological” males’ participation on women’s teams in public schools. Federal judges in both states overturned the bans. The Supreme Court majority restored them. The ruling essentially upholds similar bans enacted in 25 other states.
There was no record of any transgender person participating in school sports in the State, let alone any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.
— Justice Sonia Sotomayor, demolishing the Supreme Court’s argument in favor of banning transgender girls from girl’s sports
Kavanaugh, like Donald Trump and others in the anti-transgender camp, maintained that one’s gender is an immutable fact of life, established even before birth.
Anything else, Trump stated in an executive order he issued on inauguration day 2025, could only be the product of “gender ideology extremism.” The U.S., his order stated, recognizes “two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality.” That’s a “biological truth,” he declared.
In his own version of this overconfident and factually insupportable conclusion, Kavanaugh wrote: “As all agree, females and males have inherent physical differences relevant to athletic performance.”
Science recognizes that some people are “born with sex traits that don’t fit into typical male or female patterns,” to cite a discussion on the Cleveland Clinic web page on the topic “intersex.” The condition “may involve chromosomes, hormones, reproductive organs or genitals.”
From a psychological standpoint, medical science recognizes “gender dysphoria” as a real condition often requiring counseling and medical intervention such as the use of puberty blockers and hormones to stave off the development of secondary sex characteristics until the condition can be resolved.
No one disputes that there are physical differences between the sexes. Few would dispute that on average or even at the median, males may be bigger and more powerful than females, or that in certain contact sports the difference may be telling and on occasion dangerous.
But that’s not the same as asserting that the physical differences between males and females invariably mean that men will invariably prevail over women in all competitions or that their participation will endanger women.
The International Olympic Committee — in a policy statement Kavanaugh cited incompletely — says that in “most running and swimming events,” males have a 10% to 12% advantage over women. That’s a range that would accommodate the full spectrum of outcomes — transgender females win, cisfemales win, they tie. (The “cis” prefix denotes those living consistent with their birth gender.)
West Virginia and Idaho addressed this ambiguity by banning transgender women from all girls’ teams. So under their rules transgender girls can’t play football or soccer with cisgirls. But what’s the argument in favor of banning them from the 100-yard dash, or cross-country track, or diving, or archery?
But something else is going on here. The Supreme Court’s ruling was almost preordained, given the years-long campaign by conservatives to demonize transgender individuals as if they’re members of an alien species.
It will be recalled that during his presidential campaign, Trump spun a despicable fantasy in which children were kidnapped in school and secretly subjected to sex-change operations.
Trump’s executive order wiped out policies aimed at protecting transgender adults from discrimination. He moved to outlaw gender-affirming medical therapies for anyone under 19 by cutting off federal funding for healthcare institutions that provide such care.
He banned transgender individuals from serving in the military and ordered federal prison officials to move transgender inmates into the general populations consistent with their birth genders, which exposes them to physical assault. (Federal Judge Royce Lamberth of Washington, D.C., has blocked the government from transferring three transgender women into the male prison population or terminating their hormone treatments.)
I wrote during Trump’s first term, when his anti-transgender policies were still gestating, that the goal was to show that “one can target any community, as long as it doesn’t have a strong political voice or political power. These are the actions of bullies and cowards, pretending to be strong.”
Last year, the Supreme Court struck its first blow against transgender rights by upholding a Tennessee law banning transgender care, including puberty blockers and hormone therapy, for minors. Similar laws have been enacted in 25 other states. The majority in that ruling by Chief Justice John G. Roberts Jr. was identical to the one in the June 30 ruling — Roberts, Kavanaugh, and Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett.
Who are the targets of this ideological campaign? They number only about 1.6 million U.S. adults, or one-half of 1% of the U.S. population. About 300,000 adolescents ages 13 to 17, or 1.4%, identify as transgender, according to a study by UCLA School of Law.
In West Virginia, as Justice Sonia Sotomayor observed in her dissenting opinion, “there was no record of any transgender person participating in school sports in the State, let along any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.”
In endorsing the flat bans directed at transgender women in Idaho and West Virginia, Kavanaugh argued that any attempt to implement case-by-case judgments of students’ requests to join sports teams inconsistent with their biological gender would create “an enormous practical and administrability problem.”
Is that so? That wasn’t the case in Maine, where the annual K-12 population is more than 170,000. There, a committee was charged with determining whether a student’s participation in a sport consistent with their gender identity but inconsistent with their biological sex would “result in an unfair athletic advantage” or present a risk of injury to others. The committee held 56 hearings from 2013 through 2021, or an average of seven per year. During the entire time span, only four involved transgender girls. (The outcome of those hearings couldn’t be learned.)
It was Maine’s policy, one might recall, that provoked a confrontation between Trump and Maine Gov. Janet Mills at the White House last year, when Trump threatened to withhold federal funding from the state unless it barred transgender students from competing on women’s sports teams. “We’ll see you in court,” Mills snapped.
Whether the Idaho and West Virginia laws genuinely protect girls from unfair competition is questionable. (The Idaho law is styled the “Fairness in Women’s Sports Act.”) In practice, the laws may subject women in public schools to “invasive sex verification procedures,” as educational expert George Theoharis of Syracuse University wrote after the court ruling.
They’re also based on a retrograde view of women as fragile creatures needing men’s protection, Theoharis wrote — “the same logic that has historically been used to justify excluding women from making their own healthcare decisions and girls from rigorous math and science; that physically demanding work is simply beyond them.” (There don’t appear to be any state laws barring transgender women from competing in men’s sports.)
Becky Pepper-Jackson, the plaintiff in the West Virginia case, in which she is identified only as B.P.J., is the only transgender girl who sought to join girl’s teams — track and cross-country — in the state. That was in 2021, just after West Virginia passed its law and she was about to enter sixth grade. She didn’t appear to pose any competitive risk to others on the track and cross-country teams she applied to join — her lawyers told the Supreme Court that on those no-cut teams, she “came in near the back.”
Anyway, she had not gone through male puberty, which theoretically might have endowed her with a competitive advantage, because she had been taking puberty blockers and female hormones.
Thanks to the court’s ruling, Sotomayor observed in a dissent joined by Justices Elena Kagan and Ketanji Brown Jackson, West Virginia can deny Becky access to school sports “because it thinks they have an inherent athletic advantage, even if the facts show that they do not.”
B.P.J., Sotomayor wrote, “cannot practice on girls’ teams, even if she would not take anyone’s spot in an eventual competition, even if everyone who tries out for the team makes it, and even if having the chance to participate could aid immensely in treating B. P. J.’s gender dysphoria.”
So whose interest was really protected by the Supreme Court?
Business
Orange County real estate investor pleads not guilty in $100 million bank fraud case
An Orange County real estate investor accused of criminally defrauding an Arizona bank of nearly $100 million pleaded not guilty Monday and remains in custody.
Mahender Makhijani, 44, of Corona del Mar — who also was ordered by an arbitrator to pay $1.34 billion in a separate civil fraud case — was arraigned in Santa Ana federal court on two charges.
He is accused of bank fraud and making a false statement to a bank in a June 8 case involving a $100 million real estate loan made by Phoenix-based Western Alliance Bank. He was taken into custody on June 10.
Makhijani is accused of providing bogus collateral for the October 2024 loan now in default. In a civil lawsuit, Western Alliance said the outstanding balance as nearly $99 million.
Prosecutors say he falsified title insurance policies that showed the bank would have a first lien on the underlying collateral if the loan went bad, when in fact it did not.
A trial was set for August 11 before U.S. District Judge David O. Carter in Santa Ana.
Michael Schachter, his criminal defense attorney, did not respond to messages seeking comment.
In the civil case, an arbitrator in May ordered Makhijani to pay Laguna Beach real estate mogul Mohammad Honarkar $1.34 billion after ruling he had fraudulently induced him into a 2021 joint venture — and then wrested control and lost to creditors more than two dozen properties Honarkar had owned.
Makhijani has not been criminally charged in that case, but prosecutors alleged in an affidavit in support of the bank fraud charges that he used “force and threats” in his dealings with Honarkar and others — including taking over the landmark Hotel Laguna in 2023 that Honarkar was renovating.
Prosecutors sought to hold Makhijani without bail after his arrest.
The affidavit noted he is a legal Indian immigrant with a home and bank accounts in that country, has access to private jets and threatened to “run away” if caught in a difficult situation.
The request was denied and he was granted $500,000 bail.
However, Makhijani remains in custody after a hearing sought by prosecutors last month before Magistrate Judge Autumn Spaeth.
The judge declined to accept a $450,000 cashier’s check submitted by a Makhijani associate for the bail, finding insufficient proof the source of the funds was legitimate, according to court records.
Makhijani is not prominent outside Orange County real estate circles, but he established a thriving distressed-assets business over the last decade that attracted prominent Southern California real estate investors.
Prosecutors said it paid for a lifestyle that included two multimillion-dollar homes in Corona del Mar, a luxury apartment in Newport Beach and various luxury vehicles.
As of last month, prosecutors had not fully traced his assets, which they believe are not held in his name and some of which may be in India.
The businessman employed an array of shell companies and strawmen to sign documents on his behalf, and to stand in for him as operators of his companies, according to the affidavit.
Makhijani told an associate he took extra precautions because wanted to insulate himself from litigation and that “they were sharks in the distressed world who took advantage of people,” the affidavit stated.
-
San Francisco, CA10 minutes agoBay Area restaurant has strict policy on acceptable children behavior
-
Dallas, TX12 minutes agoDetroit Pistons trade Marcus Sasser to Dusty May’s Dallas Mavericks
-
Miami, FL17 minutes agoThe offseason has been a massive success for the Miami Heat
-
Boston, MA25 minutes ago
Can’t afford Boston’s priciest restaurants? Try these instead. – The Boston Globe
-
Denver, CO27 minutes agoCity of Denver says images of piling waste a case of illegal dumping
-
Seattle, WA32 minutes ago14-year-old dies in electric motorcycle crash at Seattle bike park
-
San Diego, CA40 minutes agoSerial sex abuser sentenced to over 300 years for crimes against young relatives
-
Milwaukee, WI42 minutes ago13 Things to Do in Milwaukee This Weekend: July 9-12