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On Sunday, September 29, 2024, Governor Newsom (D-CA) vetoed SB 1047, rejecting a framework designed to increase the safety and transparency of AI development. The bill, first introduced by State Senator Scott Wiener (D-San Francisco) and subsequently approved by both the state’s Assembly and Senate, sought to address a number of safety concerns flowing from Big Tech’s recent AI spending spree. Crucially, the now-vetoed SB 1047 included anti-retaliation protections for employees.

California’s attempt to include anti-retaliation protections as part of a larger scheme of regulating AI development reflects an impactful policy strategy. That strategy is rooted in the commonsense awareness that if certain activity is illegal and poses a direct risk of harm to the public, but such activity is easily hidden, the public benefits from empowering whistleblowers who are in a position to know about the illegal conduct.

Despite Governor Newsom’s disappointing decision to veto SB 1047, the U.S. Congress has repeatedly embraced the strategy of empowering whistleblowers. The False Claims Act, which empowers individuals blowing the whistle on fraud in government spending, originated during the Civil War at a time when defense contractors fraudulently lowered their own costs at the expense of the public,...

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