Sacramento, California – California Gov. Gavin Newsom is heatedly debating proposed AI regulations, cautioning that overly strict privacy rules could deal a major blow to the state’s booming artificial intelligence sector and broader economy.
In a rare move, Newsom sent a letter Wednesday to the California Privacy Protection Agency (CPPA) board urging them to reconsider draft regulations allowing consumers to opt out of automated hiring, healthcare, and lending decision-making tools. The governor argued that the rules could have far-reaching unintended consequences and cost California businesses up to $3.5 billion in their first year of implementation.
“Enacting these regulations could create significant unintended consequences and impose substantial costs that threaten California’s enduring dominance in technological innovation,” Newsom wrote, according to a letter obtained by POLITICO …