Perspective

California Gov. Gavin Newsom (D) late last month signed into law the Transparency in Frontier Artificial Intelligence Act (TFAIA), or SB 53, which requires large AI companies to publicly report their safety and security protocols and the potential risks of their technologies.

SB 53 marks a step forward by recognizing the need to provide employees with a secure channel to report concerns, permit and protect internal reporting and require the posting of rights in workplaces. Critically, it recognizes the importance of whistleblowing in AI and that employees need to be educated and reminded of their rights, with numerous other useful features. The text itself explains the importance of including such provisions, stating: “Whistleblower protections and public-facing information sharing are key instruments to increase transparency.”

However, other provisions are limited in scope in ways that may have a further chilling effect on employees with reasonable concerns.

Regrettably, the bill limits the range of developing this technology that are covered under the law, as well as the types of employees covered and what you can blow the whistle on based on material harm. All these caveats and qualifications will make litigation expensive and prolonged. Additionally, there are ambiguities in the remedies outlined in the statute, and the lack of compensatory and punitive damages will likely lead to further litigation on the types of relief available. A proper statute of...

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