Fourth Industrial Revolution

California AI bill blocked by governor, and other digital technology stories you need to know

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California Governor Gavin Newsom (D).

California's governor, Gavin Newsom, has blocked the state's AI safety bill. Image: REUTERS/Marco Bello

Cathy Li
Head, AI, Data and Metaverse; Member of the Executive Committee, World Economic Forum
  • This round-up brings you key digital technology stories from the past fortnight.
  • Top digital technology stories: AI bill blocked by California governor; US-UK to set up joint children's online safety working group; India central bank governor warns on financial stability risks of AI.

1. AI bill blocked by California governor

California's governor, Gavin Newsom, has blocked a controversial artificial intelligence safety bill, which had generated strong opposition from major technology companies. The bill would have imposed some of the first legislation on AI in the United States, reports the BBC.

In a statement, the governor explained: "I do not believe this is the best approach to protecting the public from real threats posed by the technology."

He said that any AI regulation needed to "keep pace with the technology itself" and Newsom said he was committed to finding a path forward that mitigates risks and protects against threats without "thwarting the promise of this technology to advance the public good".

The bill would have required the most advanced AI models to undergo safety testing and forced developers to include a 'kill switch' to isolate and cut off an AI system.

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How is the World Economic Forum creating guardrails for Artificial Intelligence?

2. US-UK to launch joint working group for children's online safety

The United States and United Kingdom governments have announced they will set up and launch a new working group on children's online safety.

In a statement, the UK government said there was currently "limited research and evidence on the causal impact that social media has on children and young people".

Once the group is established, it will work in areas including increased transparency from platforms. The countries will also share expertise on safety technologies and the impact of generative AI.

"The online world brings incredible benefits for young people, enriching their education and social lives. But these experiences must take place in an environment which has safety baked in from the outset, not as an afterthought," UK Technology Secretary Peter Kyle said.

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3. News in brief: Digital technology stories from around the world

A study has found that newer, larger versions of three major artificial intelligence chatbots are more likely to generate wrong answers than to admit ignorance. It also found that, in general, people aren't good at spotting the bad answers.

Microsoft's head of AI has said that AI assistants with "really good long-term memory" are around a year away. “I think we’re moving to a fundamentally new age where there will be ever-present, persistent, very capable co-pilot companions in your everyday life,” he said, according to BBC reporting.

Fourteen attorneys general in the United States have sued TikTok, which says the social media platform is helping drive a teen mental health crisis. The platform called it "disappointing".

Brazil has lifted a ban on the social media platform X – formerly Twitter – after the site paid fines and agreed to appoint a local representative.

The US Federal Trade Commission has announced actions against five businesses it said were using AI in deceptive and unfair ways.

Google has announced plans to buy power from multiple small modular reactors to help meet the electricity demands of artificial intelligence.

The Governor of the Reserve Bank of India, Shaktikanta Das, has warned of the financial risks of AI. The growing use of technology, including AI and machine learning, in financial services could impact financial stability, he told an event in New Delhi.

4. More on digital technology on Agenda

What will determine AI's contribution to productivity growth? And how can policy help shape them? Experts identify three key areas in this piece published for our Annual Meeting of the Global Future Councils.

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Thomas Crampton, the Co-Founder of Crampton Blackie Partners, explores four challenges that tech innovators face when engaging with investors – and looks at how to overcome them.

How can equitable data practices help shape the future of urban planning? Current urban AI systems do not prioritize inclusion, equity and participation in the innovation process. Here's how equitable and sustainable cities could be achieved by advancing data equity in practice.

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Contents
1. AI bill blocked by California governor 2. US-UK to launch joint working group for children's online safety3. News in brief: Digital technology stories from around the world4. More on digital technology on Agenda

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