The rapid evolution of artificial intelligence (AI) presents both immense opportunities and significant risks. To address these challenges, the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act (Senate Bill 1047) aims to foster responsible innovation in California by regulating advanced AI models, or "covered models." This legislation is designed to ensure that AI development remains safe and secure while encouraging innovation.

Key Provisions of the Act:

• Regulation of Covered Models The act targets AI models trained with substantial computing power, specifically those costing over $100 million to develop. This financial threshold will be adjusted annually for inflation and technological changes.
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• Responsibilities for AI Developers Developers of covered models are required to adhere to a set of stringent safety and security measures:

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Safety and Security Protocol: A documented protocol must outline the risk management procedures for the model’s entire lifecycle, including mitigating potential harms from the model and its derivatives.

Cybersecurity Measures: Developers must implement robust cybersecurity protections to prevent unauthorized access and unsafe modifications.

Full Shutdown Capability: Developers must ensure that their models can be shut down promptly, including any derivative models.

Risk Assessment: Regular assessments are required to evaluate the model's potential to cause critical harm, with safeguards implemented to prevent such occurrences.

Attribution: Actions by the model and its derivatives must be reliably attributable.

Third-Party Audits: Beginning in 2026, developers must undergo annual third-party audits to verify compliance with the act’s requirements.

Incident Reporting: Any AI safety incidents must be reported to the Attorney General within 72 hours of discovery.

• Computing Cluster Operator Responsibilities Operators of computing clusters used for AI training have specific obligations, including:

Customer Due Diligence: Operators must gather identifying information from customers and assess their intended use of the computing resources.

Shutdown Capability: Operators must have the capability to shut down resources under the customer's control.

• Enforcement and Penalties The Attorney General has the authority to enforce the act through civil actions against developers for non-compliance, which can result in significant fines, damages, and other penalties.
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• Whistleblower Protections The act provides protections for employees who report potential violations or risks, shielding them from retaliation.
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• Oversight and Support through the Board of Frontier Models and CalCompute The act establishes the Board of Frontier Models within the Government Operations Agency, responsible for oversight and regulatory updates. It also proposes the creation of "CalCompute," a public cloud computing cluster that supports safe, ethical AI development in California.

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Key Definitions:

• Critical Harm: Grave harms to public safety, such as AI involvement in creating weapons of mass destruction or enabling cyberattacks with mass casualties.
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• Artificial Intelligence Safety Incident: Any incident that increases the risk of critical harm, including unauthorized access or unintended autonomous behavior by the model.
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• Safety and Security Protocol: Documented procedures for managing the risks associated with developing and operating covered models.

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The act mandates transparency by requiring developers to publish redacted safety and security protocols and audit reports. However, unredacted versions remain confidential to protect sensitive information.

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Conclusion

The Safe and Secure Innovation for Frontier Artificial Intelligence Models Act represents a significant step toward balancing innovation and safety in the AI sector. By imposing stringent requirements on developers and operators, California is setting a precedent for responsible AI development, ensuring the state remains a leader in technological advancement while prioritizing public safety and security.

Senate Bill 1047

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