The Real Chilling Effects: What Happens if SB 1047 Isn’t Signed Into Law?

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Let’s ask the AI what really could go wrong if SB 1047 doesn’t get signed

As the conversation around artificial intelligence (AI) heats up, California’s SB 1047 stands at a critical juncture. While Governor Gavin Newsom has expressed concerns over the “chilling effect” this legislation might have on California’s competitive edge in the AI sector, there’s a far more dangerous chilling effect that we need to address: the catastrophic consequences of failing to regulate AI before it’s too late. The truth is that if SB 1047 is not signed into law, the ramifications could extend well beyond competitiveness—they could lead to unprecedented levels of societal harm, economic devastation, and loss of human autonomy.

Let’s break down the risks we face if SB 1047 is vetoed and the AI industry continues to operate unchecked:

1. Widespread AI Disasters and Accountability Gaps

The most immediate concern is the lack of accountability. SB 1047 would hold AI companies legally responsible if they fail to implement necessary safety measures, and their technology subsequently causes harm. Without this safeguard, the door is open for AI systems to cause unintended yet severe consequences—without recourse. This could lead to:

  • AI-driven accidents: Think autonomous vehicles, drones, and healthcare systems making critical decisions without human oversight. Without regulatory frameworks, who is held accountable if an AI model leads to a fatal crash or a medical error?

  • Faulty AI predictions: Financial markets and supply chains increasingly rely on AI. What happens when models are flawed or compromised, leading to massive stock market crashes, job losses, or logistical failures that could cripple entire industries?

2. Unregulated AI Leading to Mass Job Displacement

One of the most pressing issues SB 1047 seeks to address is the societal impact of AI on the workforce. Without proper regulation, companies will continue to adopt AI solutions that replace human labor at a scale that is unsustainable.

  • Rapid unemployment increases: As I’ve previously explored, unregulated AI could push unemployment to unprecedented levels. The failure to put safety measures in place could accelerate the displacement of workers in nearly every industry, leaving millions without jobs.

  • Economic inequality: The divide between tech companies profiting from AI and the workers left behind will only widen. Communities already vulnerable—especially low-income families—could face devastating poverty as they struggle to find new, relevant employment.

3. Unethical Uses of AI Proliferate

Without SB 1047, unethical uses of AI could become the norm, especially when it comes to surveillance, predictive policing, and the manipulation of information. The absence of a legal framework allows corporations and even governments to deploy AI in ways that undermine privacy, democracy, and fundamental human rights.

  • Deepfakes and misinformation: Although Newsom has signed bills regulating AI in political ads, unregulated AI could still be weaponized to spread misinformation at a scale we have never seen before. Imagine AI-driven political campaigns where fake personas sway public opinion—ultimately subverting democracy itself.

  • Mass surveillance: AI used for facial recognition and predictive policing could be abused, leading to widespread surveillance and discriminatory practices against marginalized communities.

4. AI-Driven Climate Catastrophes

AI is already being integrated into climate solutions, such as carbon capture technology and smart grids. However, if AI is left unregulated, we risk putting climate management in the hands of algorithms that are not properly tested for safety and accuracy. The results could be disastrous:

  • Mismanagement of environmental resources: AI could make flawed decisions when it comes to managing critical resources like water, land, and energy. The consequences of a malfunctioning AI system could lead to resource shortages, deforestation, or even the exacerbation of climate change.

  • Energy strain: The unchecked use of large AI models could lead to an unsustainable energy demand, contributing to the very climate issues we are trying to solve. AI technology requires immense computational power, which, if left unchecked, could add to the global energy crisis.

5. Erosion of Trust in AI and Tech Industries

If SB 1047 is not signed into law, the public’s trust in AI and technology could deteriorate rapidly. Once people begin to feel the tangible effects of unregulated AI—whether through job loss, misinformation, or harmful accidents—they will begin to distrust the very technologies that could otherwise help society progress.

  • Consumer and public backlash: As AI causes more harm, consumers could turn against the tech companies and industries that failed to adopt ethical and safe practices. This backlash could impede innovation in the long run, as companies struggle to regain public trust.

6. Global Consequences and Technological Fragmentation

California is a leader in the tech world, and the passage or failure of SB 1047 will have ripple effects across the globe. If the state that is home to Silicon Valley fails to regulate AI, other regions might follow suit, leading to global consequences.

  • International AI arms race: Without California taking a stand, countries like China, Russia, and others could rush to develop AI technologies without ethical considerations, resulting in geopolitical tensions and the weaponization of AI.

  • Technological fragmentation: If different states or countries adopt varied AI regulations, the global tech ecosystem could fragment, with incompatible systems and standards that slow down innovation and cooperation.

Worst-Case Scenarios:

  • Catastrophic AI Failures: Without safety measures, AI models could malfunction or behave unpredictably, causing large-scale disasters in healthcare, finance, transportation, and even defense.

  • Runaway AI Development: If left unchecked, we risk developing AI systems that we cannot fully control. This includes the rise of autonomous AI that makes decisions beyond human comprehension or oversight, posing existential risks.

  • Total Economic Collapse: The combination of mass unemployment, unregulated AI-driven financial systems, and the erosion of trust in markets could lead to economic collapse, with irreversible damage to the global economy.

Conclusion: The True Chilling Effect

While Governor Newsom and other leaders are concerned that SB 1047 may have a “chilling effect” on California’s competitiveness, the real chilling effect lies in what will happen if the bill is not signed into law. Failing to regulate AI now is a far greater risk than hampering innovation in the short term. The long-term consequences could be catastrophic for workers, communities, and society as a whole.

We must ask ourselves: is the unchecked advancement of AI worth the irreversible harm it could cause? SB 1047 offers a path forward that balances innovation with responsibility—ensuring that AI benefits society rather than undermines it. It’s time for Governor Newsom to recognize the true dangers of inaction and sign SB 1047 into law.

Kevin Bihan-Poudec | Advocate for Ethical AI and Workforce Preservation

#DemandEthicalAI

Subject: Urgent Action Needed: The Catastrophic Risks of Ignoring SB 1047's AI Regulations

Dear Governor Newsom,

I am writing to you with great urgency regarding the passage of SB 1047, a bill that would regulate the largest artificial intelligence (AI) models, and the potential “chilling effects” that may occur if it is not signed into law. While I understand your concern about the impact this bill might have on California’s competitive edge in AI development, I believe the true chilling effect lies in what might happen if we fail to regulate AI at this critical moment.

I have been personally impacted by the rapid development of AI as a data analyst. This technology is alarmingly close to replacing my skill set entirely. While AI can be a powerful tool for progress, without proper guardrails, it can lead to the displacement of millions of workers, driving massive job losses and destabilizing the economy. We need to establish the necessary regulations now to ensure AI enhances our workforce, not undermines it. SB 1047 is a step in the right direction toward maintaining economic stability in our country.

The bill, as it is written, applies only to AI models larger than any that currently exist—those trained on over 10^26 FLOP of computing power and that cost more than $100 million to develop. This means the vast majority of small startups will not be affected by the legislation. The bill specifically addresses the risks posed by AI systems developed by the largest tech companies, such as OpenAI and other frontier labs, ensuring that their models—capable of causing widespread societal harm—are held to the highest standards of safety.

Furthermore, it is critical to recognize that this bill only targets extreme risks, such as cyberattacks, autonomous crime causing over $500 million in damage, or the creation of AI-driven weapons. These scenarios may sound like science fiction, but they are not as far-fetched as they seem. In fact, I consulted AI itself on the risks of unregulated development, and it raised concerns about its potential impact on cybersecurity, public safety, and even the environment. This demonstrates that AI has developed an autonomous decision-making process, a “brain” of its own, further illustrating the urgency of establishing regulatory guardrails.

While I understand that there may be concerns about the bill’s effect on competitiveness, I urge you to sign SB 1047 in its current form and allow for revisions or modifications later to address the concerns of small startups and other stakeholders. The bill, as written, ensures that we are tackling the most dangerous risks posed by AI, without hindering innovation at the grassroots level.

Without SB 1047, we risk not only job losses and economic destabilization but also opening the door to catastrophic outcomes, including large-scale cyberattacks, AI-driven crimes, and even the potential creation of weapons of mass destruction using AI. These dangers, combined with the threat of economic inequality caused by unregulated automation, are far too great to ignore.

Governor Newsom, the world is watching California, and your decision will set a precedent for how we regulate one of the most transformative technologies of our time. Please consider the long-term impacts on our society, our economy, and our workforce, and sign SB 1047 into law before it is too late.

Thank you for your time and attention to this urgent matter.

Sincerely, 

Kevin Bihan-Poudec 

Founder, Voice for Change Foundation 

Advocate for ethical AI, workforce preservation, and human rights.

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