The head of the artificial intelligence company that makes ChatGPT told Congress on Tuesday that government intervention will be critical in battling the risks of increasingly powerful AI systems.

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The head of the artificial intelligence company that makes ChatGPT told Congress on Tuesday that government intervention will be critical in battling the risks of increasingly powerful AI systems.

“As this technology advances, we understand that people are anxious about how it could change the way we live. We are too,&#8221; OpenAI CEO Sam Altman said at a Senate hearing.

“As this technology advances, we understand that people are anxious about how it could change the way we live. We are too," OpenAI CEO Sam Altman said at a Senate hearing.

“As this technology advances, we understand that people are anxious about how it could change the way we live. We are too,&#8221; OpenAI CEO Sam Altman said at a Senate hearing.

Altman suggested the formation of a U.S. or global agency that would license the most powerful AI systems and have the authority to “take that license away and ensure compliance with safety standards.”

Altman suggested the formation of a U.S. or global agency that would license the most powerful AI systems and have the authority to “take that license away and ensure compliance with safety standards.”

READ MORE: <a href="https://sfstandard.com/technology/i-tried-to-visit-openais-office-hilarity-ensued/">I Tried To Visit OpenAI’s Office. Hilarity Ensued</a>

READ MORE: <a href="https://sfstandard.com/technology/i-tried-to-visit-openais-office-hilarity-ensued/">I Tried To Visit OpenAI’s Office. Hilarity Ensued</a>

OpenAI CEO Sam Altman speaks before a Senate Judiciary Subcommittee on Privacy, Technology and the Law hearing on artificial intelligence, Tuesday, May 16, 2023, on Capitol Hill in Washington. | AP Photo/Patrick Semansky

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/05/AP23136597281185.jpg" alt="" class="wp-image-160904"/><figcaption class="wp-element-caption">OpenAI CEO Sam Altman speaks before a Senate Judiciary Subcommittee on Privacy, Technology and the Law hearing on artificial intelligence on Tuesday on Capitol Hill in Washington, D.C. | Patrick Semansky/AP Photo</figcaption></figure>

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<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/05/AP23136597281185.jpg" alt="" class="wp-image-160904"/><figcaption class="wp-element-caption">OpenAI CEO Sam Altman speaks before a Senate Judiciary Subcommittee on Privacy, Technology and the Law hearing on artificial intelligence on Tuesday on Capitol Hill in Washington, D.C. | Patrick Semansky/AP Photo</figcaption></figure>

His San Francisco-based startup rocketed to public attention after it released ChatGPT late last year. <a href="https://sfstandard.com/video/what-is-chatgpt-explaining-the-viral-ai-chatbot-coming-out-of-san-francisco/">ChatGPT is a free chatbot tool that answers questions with convincingly human-like responses</a>.

His San Francisco-based startup rocketed to public attention after it released ChatGPT late last year. <a href="https://sfstandard.com/video/what-is-chatgpt-explaining-the-viral-ai-chatbot-coming-out-of-san-francisco/">ChatGPT is a free chatbot tool that answers questions with convincingly human-like responses</a>.

What started out as a panic among educators about ChatGPT&#8217;s use to cheat on homework assignments has expanded to broader concerns about the ability of the latest crop of “generative AI” tools to&nbsp;mislead people, spread falsehoods,&nbsp;violate copyright protections&nbsp;and&nbsp;<a href="https://apnews.com/article/ai-hollywood-writers-strike-artificial-intelligence-dc71c4cabcca0ee1b1afe0050d392a36" target="_blank" rel="noreferrer noopener">upend some jobs</a>.

What started out as a panic among educators about ChatGPT's use to cheat on homework assignments has expanded to broader concerns about the ability of the latest crop of “generative AI” tools to&nbsp;mislead people, spread falsehoods,&nbsp;violate copyright protections&nbsp;and&nbsp;<a href="https://apnews.com/article/ai-hollywood-writers-strike-artificial-intelligence-dc71c4cabcca0ee1b1afe0050d392a36" target="_blank" rel="noreferrer noopener">upend some jobs</a>.

What started out as a panic among educators about ChatGPT&#8217;s use to cheat on homework assignments has expanded to broader concerns about the ability of the latest crop of “generative AI” tools to&nbsp;mislead people, spread falsehoods,&nbsp;violate copyright protections&nbsp;and&nbsp;<a href="https://apnews.com/article/ai-hollywood-writers-strike-artificial-intelligence-dc71c4cabcca0ee1b1afe0050d392a36" target="_blank" rel="noreferrer noopener">upend some jobs</a>.

And while there&#8217;s no immediate sign Congress will craft sweeping new AI rules,&nbsp;<a href="https://apnews.com/article/tech-ai-artificial-intelligence-europe-eu-15ac394679519084478e15217c156abc" target="_blank" rel="noreferrer noopener">as European lawmakers are doing</a>, the societal concerns brought Altman and other&nbsp;tech CEOs to the White House&nbsp;earlier in May and have led U.S. agencies to promise to&nbsp;crack down on harmful&nbsp;AI products that break existing civil rights and consumer protection laws.

And while there's no immediate sign Congress will craft sweeping new AI rules,&nbsp;<a href="https://apnews.com/article/tech-ai-artificial-intelligence-europe-eu-15ac394679519084478e15217c156abc" target="_blank" rel="noreferrer noopener">as European lawmakers are doing</a>, the societal concerns brought Altman and other&nbsp;tech CEOs to the White House&nbsp;earlier in May and have led U.S. agencies to promise to&nbsp;crack down on harmful&nbsp;AI products that break existing civil rights and consumer protection laws.

And while there&#8217;s no immediate sign Congress will craft sweeping new AI rules,&nbsp;<a href="https://apnews.com/article/tech-ai-artificial-intelligence-europe-eu-15ac394679519084478e15217c156abc" target="_blank" rel="noreferrer noopener">as European lawmakers are doing</a>, the societal concerns brought Altman and other&nbsp;tech CEOs to the White House&nbsp;earlier in May and have led U.S. agencies to promise to&nbsp;crack down on harmful&nbsp;AI products that break existing civil rights and consumer protection laws.

Sen. Richard Blumenthal, the Connecticut Democrat who chairs the Senate Judiciary Committee’s subcommittee on privacy, technology and the law, opened the hearing with a recorded speech that sounded like the senator, but was actually a voice clone trained on Blumenthal&#8217;s floor speeches and reciting ChatGPT-written opening remarks.

Sen. Richard Blumenthal, the Connecticut Democrat who chairs the Senate Judiciary Committee’s subcommittee on privacy, technology and the law, opened the hearing with a recorded speech that sounded like the senator, but was actually a voice clone trained on Blumenthal's floor speeches and reciting ChatGPT-written opening remarks.

Sen. Richard Blumenthal, the Connecticut Democrat who chairs the Senate Judiciary Committee’s subcommittee on privacy, technology and the law, opened the hearing with a recorded speech that sounded like the senator, but was actually a voice clone trained on Blumenthal&#8217;s floor speeches and reciting ChatGPT-written opening remarks.

READ MORE: <a href="https://sfstandard.com/technology/we-asked-an-ai-to-write-a-typical-sf-story-heres-what-it-came-up-with/">We Asked an AI To Write a Typical SF Story. Here’s What It Came Up With</a>

READ MORE: <a href="https://sfstandard.com/technology/we-asked-an-ai-to-write-a-typical-sf-story-heres-what-it-came-up-with/">We Asked an AI To Write a Typical SF Story. Here’s What It Came Up With</a>

The result was impressive, said Blumenthal, but he added, “What if I had asked it, and what if it had provided, an endorsement of Ukraine surrendering or [Russian President] Vladimir Putin’s leadership?”

The result was impressive, said Blumenthal, but he added, “What if I had asked it, and what if it had provided, an endorsement of Ukraine surrendering or [Russian President] Vladimir Putin’s leadership?”

The overall tone of senators&#8217; questioning was polite Tuesday, a contrast to past congressional hearings in which tech and social media executives faced tough grillings over the industry&#8217;s failures to manage data privacy or counter harmful misinformation. In part, that was because both Democrats and Republicans said they were interested in seeking Altman&#8217;s expertise on averting problems that haven&#8217;t yet occurred.

The overall tone of senators' questioning was polite Tuesday, a contrast to past congressional hearings in which tech and social media executives faced tough grillings over the industry's failures to manage data privacy or counter harmful misinformation. In part, that was because both Democrats and Republicans said they were interested in seeking Altman's expertise on averting problems that haven't yet occurred.

The overall tone of senators&#8217; questioning was polite Tuesday, a contrast to past congressional hearings in which tech and social media executives faced tough grillings over the industry&#8217;s failures to manage data privacy or counter harmful misinformation. In part, that was because both Democrats and Republicans said they were interested in seeking Altman&#8217;s expertise on averting problems that haven&#8217;t yet occurred.

Blumenthal said AI companies ought to be required to test their systems and disclose known risks before releasing them, and expressed particular concern about how future AI systems could destabilize the job market. Altman was largely in agreement, though had a more optimistic take on the future of work.

Blumenthal said AI companies ought to be required to test their systems and disclose known risks before releasing them, and expressed particular concern about how future AI systems could destabilize the job market. Altman was largely in agreement, though had a more optimistic take on the future of work.

&#8216;Significant Harm To the World&#8217;

<h2 class="wp-block-heading" id="h-significant-harm-to-the-world">&#8216;Significant Harm To the World&#8217;</h2>

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<h2 id="h-significant-harm-to-the-world">'Significant Harm To the World'</h2>

<h2 id="h-significant-harm-to-the-world">&#8216;Significant Harm To the World&#8217;</h2>

Photo illustration of ChatGPT, an AI tool that can write many things—including imagined 'typical San Francisco' news stories. | Camille Cohen/The Standard

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/12/AIChatBot12022022.jpg" alt="" class="wp-image-99809"/><figcaption class="wp-element-caption">Photo illustration of ChatGPT, an AI tool that can write many things—including imagined &#8220;typical San Francisco&#8221; news stories. | Camille Cohen/The Standard</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/12/AIChatBot12022022.jpg" alt="" class="wp-image-99809"/><figcaption class="wp-element-caption">Photo illustration of ChatGPT, an AI tool that can write many things—including imagined "typical San Francisco" news stories. | Camille Cohen/The Standard</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/12/AIChatBot12022022.jpg" alt="" class="wp-image-99809"/><figcaption class="wp-element-caption">Photo illustration of ChatGPT, an AI tool that can write many things—including imagined &#8220;typical San Francisco&#8221; news stories. | Camille Cohen/The Standard</figcaption></figure>

Pressed on his own worst fear about AI, Altman mostly avoided specifics, except to say that the industry could cause “significant harm to the world” and that “if this technology goes wrong, it can go quite wrong.”

Pressed on his own worst fear about AI, Altman mostly avoided specifics, except to say that the industry could cause “significant harm to the world” and that “if this technology goes wrong, it can go quite wrong.”

But he later suggested that a new regulatory agency should impose safeguards that would block AI models that could “self-replicate and self-exfiltrate into the wild”—hinting at futuristic concerns about advanced AI systems that could manipulate humans into ceding control.

But he later suggested that a new regulatory agency should impose safeguards that would block AI models that could “self-replicate and self-exfiltrate into the wild”—hinting at futuristic concerns about advanced AI systems that could manipulate humans into ceding control.

Co-founded by Altman in 2015 with backing from tech billionaire Elon Musk, OpenAI has evolved from a nonprofit research lab with a safety-focused mission into a business. Its other popular AI products include the image-maker DALL-E. Microsoft has invested billions of dollars into the startup and has integrated its technology into its own products, including&nbsp;its search engine Bing.

Co-founded by Altman in 2015 with backing from tech billionaire Elon Musk, OpenAI has evolved from a nonprofit research lab with a safety-focused mission into a business. Its other popular AI products include the image-maker DALL-E. Microsoft has invested billions of dollars into the startup and has integrated its technology into its own products, including&nbsp;its search engine Bing.

Altman is also planning to embark on a worldwide tour this month to national capitals and major cities across six continents to talk about the technology with policymakers and the public. On the eve of his Senate testimony, he dined with dozens of U.S. lawmakers, several of whom&nbsp;<a href="https://newsroom.ap.org/Altman%20also%20this%20month%20was%20planning%20to%20embark%20on%20a%20worldwide%20tour%20across%20six%20continents%20to%20talk%20about%20the%20technology%20with%20policymakers%20and%20the%20public.%20On%20the%20eve%20of%20his%20Senate%20testimony,%20he%20dined%20Monday%20with%20dozens%20of%20U.S.%20lawmakers,%20several%20of%20whom%20told%20CNBC%20they%20were%20impressed%20by%20his%20comments." target="_blank" rel="noreferrer noopener">told CNBC</a>&nbsp;they were impressed by his comments.

Altman is also planning to embark on a worldwide tour this month to national capitals and major cities across six continents to talk about the technology with policymakers and the public. On the eve of his Senate testimony, he dined with dozens of U.S. lawmakers, several of whom&nbsp;<a href="https://newsroom.ap.org/Altman%20also%20this%20month%20was%20planning%20to%20embark%20on%20a%20worldwide%20tour%20across%20six%20continents%20to%20talk%20about%20the%20technology%20with%20policymakers%20and%20the%20public.%20On%20the%20eve%20of%20his%20Senate%20testimony,%20he%20dined%20Monday%20with%20dozens%20of%20U.S.%20lawmakers,%20several%20of%20whom%20told%20CNBC%20they%20were%20impressed%20by%20his%20comments." target="_blank" rel="noreferrer noopener">told CNBC</a>&nbsp;they were impressed by his comments.

Also testifying were IBM&#8217;s chief privacy and trust officer, Christina Montgomery, and Gary Marcus, a professor emeritus at New York University who was among a group of AI experts who&nbsp;<a href="https://apnews.com/article/artificial-intelligence-chatgpt-risks-petition-elon-musk-steve-wozniak-534f0298d6304687ed080a5119a69962" target="_blank" rel="noreferrer noopener">called on OpenAI and other tech firms to pause their development</a>&nbsp;of more powerful AI models for six months to give society more time to&nbsp;<a href="https://apnews.com/article/ai-godfather-google-geoffrey-hinton-yoshua-bengio-chatgpt-5f7dc295a576833dfc3378071b5716f2" target="_blank" rel="noreferrer noopener">consider the risks</a>. The letter was a response to the March release of OpenAI&#8217;s&nbsp;<a href="https://apnews.com/article/chatgpt-gpt4-artificial-intelligence-chatbots-307e867e3fe4464be9c4f884909f3977" target="_blank" rel="noreferrer noopener">latest model, GPT-4</a>, described as more powerful than ChatGPT.

Also testifying were IBM's chief privacy and trust officer, Christina Montgomery, and Gary Marcus, a professor emeritus at New York University who was among a group of AI experts who&nbsp;<a href="https://apnews.com/article/artificial-intelligence-chatgpt-risks-petition-elon-musk-steve-wozniak-534f0298d6304687ed080a5119a69962" target="_blank" rel="noreferrer noopener">called on OpenAI and other tech firms to pause their development</a>&nbsp;of more powerful AI models for six months to give society more time to&nbsp;<a href="https://apnews.com/article/ai-godfather-google-geoffrey-hinton-yoshua-bengio-chatgpt-5f7dc295a576833dfc3378071b5716f2" target="_blank" rel="noreferrer noopener">consider the risks</a>. The letter was a response to the March release of OpenAI's&nbsp;<a href="https://apnews.com/article/chatgpt-gpt4-artificial-intelligence-chatbots-307e867e3fe4464be9c4f884909f3977" target="_blank" rel="noreferrer noopener">latest model, GPT-4</a>, described as more powerful than ChatGPT.

Also testifying were IBM&#8217;s chief privacy and trust officer, Christina Montgomery, and Gary Marcus, a professor emeritus at New York University who was among a group of AI experts who&nbsp;<a href="https://apnews.com/article/artificial-intelligence-chatgpt-risks-petition-elon-musk-steve-wozniak-534f0298d6304687ed080a5119a69962" target="_blank" rel="noreferrer noopener">called on OpenAI and other tech firms to pause their development</a>&nbsp;of more powerful AI models for six months to give society more time to&nbsp;<a href="https://apnews.com/article/ai-godfather-google-geoffrey-hinton-yoshua-bengio-chatgpt-5f7dc295a576833dfc3378071b5716f2" target="_blank" rel="noreferrer noopener">consider the risks</a>. The letter was a response to the March release of OpenAI&#8217;s&nbsp;<a href="https://apnews.com/article/chatgpt-gpt4-artificial-intelligence-chatbots-307e867e3fe4464be9c4f884909f3977" target="_blank" rel="noreferrer noopener">latest model, GPT-4</a>, described as more powerful than ChatGPT.

The panel&#8217;s ranking Republican, Sen. Josh Hawley of Missouri, said the technology has big implications for elections, jobs and national security. He said Tuesday&#8217;s hearing marked &#8220;a critical first step towards understanding what Congress should do.”

The panel's ranking Republican, Sen. Josh Hawley of Missouri, said the technology has big implications for elections, jobs and national security. He said Tuesday's hearing marked "a critical first step towards understanding what Congress should do.”

The panel&#8217;s ranking Republican, Sen. Josh Hawley of Missouri, said the technology has big implications for elections, jobs and national security. He said Tuesday&#8217;s hearing marked &#8220;a critical first step towards understanding what Congress should do.”

A number of tech industry leaders have said they welcome some form of AI oversight but have cautioned against what they see as overly heavy-handed rules. Altman and Marcus both called for an AI-focused regulator, preferably an international one, with Altman citing the precedent of the U.N.’s nuclear agency and Marcus comparing it to the U.S. Food and Drug Administration. But IBM&#8217;s Montgomery instead asked Congress to take a “precision regulation&#8221; approach.

A number of tech industry leaders have said they welcome some form of AI oversight but have cautioned against what they see as overly heavy-handed rules. Altman and Marcus both called for an AI-focused regulator, preferably an international one, with Altman citing the precedent of the U.N.’s nuclear agency and Marcus comparing it to the U.S. Food and Drug Administration. But IBM's Montgomery instead asked Congress to take a “precision regulation" approach.

A number of tech industry leaders have said they welcome some form of AI oversight but have cautioned against what they see as overly heavy-handed rules. Altman and Marcus both called for an AI-focused regulator, preferably an international one, with Altman citing the precedent of the U.N.’s nuclear agency and Marcus comparing it to the U.S. Food and Drug Administration. But IBM&#8217;s Montgomery instead asked Congress to take a “precision regulation&#8221; approach.

“We think that AI should be regulated at the point of risk, essentially,” Montgomery said, by establishing rules that govern the deployment of specific uses of AI rather than the technology itself.

“We think that AI should be regulated at the point of risk, essentially,” Montgomery said, by establishing rules that govern the deployment of specific uses of AI rather than the technology itself.

ChatGPT boss: Artificial intelligence should be government regulated

Priya Anand

After President Joe Biden dropped out of the 2024 race on Sunday, Silicon Valley’s prominent Democrats weighed in on whether the party should crown Vice President Kamala Harris as nominee or run an open convention.

After President Joe Biden dropped out of the 2024 race on Sunday, Silicon Valley’s prominent Democrats weighed in on whether the party should crown Vice President Kamala Harris as nominee or run an open convention.

On Monday, Ron Conway, founder and managing partner at the venture firm SV Angel, tweeted his “unwavering support” for Harris. Former Meta executive Sheryl Sandberg declared her support in an <a href="https://www.instagram.com/p/C9vWiygyEIS/?hl=en">Instagram post</a>, calling Harris “an accomplished leader, a fierce advocate of abortion rights and the strongest candidate to lead our country forward.”

On Monday, Ron Conway, founder and managing partner at the venture firm SV Angel, tweeted his “unwavering support” for Harris. Former Meta executive Sheryl Sandberg declared her support in an <a href="https://www.instagram.com/p/C9vWiygyEIS/?hl=en">Instagram post</a>, calling Harris “an accomplished leader, a fierce advocate of abortion rights and the strongest candidate to lead our country forward.”

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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The tech community must come together to defeat Donald Trump and save our democracy by uniting behind Vice President <a href="https://twitter.com/KamalaHarris?ref_src=twsrc%5Etfw">@KamalaHarris</a> as the Democratic nominee for President. I have known Kamala for decades, and she&#39;s been a fighter, a leader, and an advocate for the tech ecosystem…&mdash; Ron Conway (@RonConway) <a href="https://twitter.com/RonConway/status/1815466335612399778?ref_src=twsrc%5Etfw">July 22, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

LinkedIn cofounder Reid Hoffman, a major Democratic donor, said Sunday that he “wholeheartedly” supports Harris.

LinkedIn cofounder Reid Hoffman, a major Democratic donor, said Sunday that he “wholeheartedly” supports Harris.

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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The Democrats are the party of policy, progress, and action. When presented with the choice between Kamala Harris and Donald Trump, I believe in the American people to make the right decision for our country. The Biden-Harris administration has put this country on the right…&mdash; Reid Hoffman (@reidhoffman) <a href="https://twitter.com/reidhoffman/status/1815103690912723274?ref_src=twsrc%5Etfw">July 21, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

But Vinod Khosla, the venture capitalist whose firm bears his name, on Sunday published several posts on X calling for an open convention.

But Vinod Khosla, the venture capitalist whose firm bears his name, on Sunday published several posts on X calling for an open convention.

“Too much is at stake to not have a proper process at the convention, hopefully with ranked choice voting there,” <a href="https://x.com/vkhosla/status/1815115711930630639">he said</a>.

“Too much is at stake to not have a proper process at the convention, hopefully with ranked choice voting there,” <a href="https://x.com/vkhosla/status/1815115711930630639">he said</a>.

SF leaders react to Joe Biden dropping out, line up behind Kamala Harris

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Willie Brown says Biden should resign immediately, let Harris be POTUS

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The list of donors to Harris’ <a href="https://www.nytimes.com/2020/08/20/technology/kamala-harris-ties-to-big-tech.html">past campaigns</a> is a who’s who of Silicon Valley: Conway, John Doerr of the venture firm Kleiner Perkins, former Apple design guru Jony Ive and Salesforce co-founder Marc Benioff, among others.

The list of donors to Harris’ <a href="https://www.nytimes.com/2020/08/20/technology/kamala-harris-ties-to-big-tech.html">past campaigns</a> is a who’s who of Silicon Valley: Conway, John Doerr of the venture firm Kleiner Perkins, former Apple design guru Jony Ive and Salesforce co-founder Marc Benioff, among others.

Laurene Powell Jobs hosted a fundraiser for Harris in her backyard in 2013, <a href="https://www.nytimes.com/2020/08/20/technology/kamala-harris-ties-to-big-tech.html">according to the New York Times</a>. And Harris’ brother-in-law is Uber’s chief legal officer, Tony West.

Laurene Powell Jobs hosted a fundraiser for Harris in her backyard in 2013, <a href="https://www.nytimes.com/2020/08/20/technology/kamala-harris-ties-to-big-tech.html">according to the New York Times</a>. And Harris’ brother-in-law is Uber’s chief legal officer, Tony West.

In the U.S. Senate, Harris tackled data privacy issues. As vice president, she helped the Biden administration advocate for regulations on artificial intelligence.

In the U.S. Senate, Harris tackled data privacy issues. As vice president, she helped the Biden administration advocate for regulations on artificial intelligence.

Silicon Valley donors have been increasingly vocal about their preferences around regulation of artificial intelligence, cryptocurrency and other technologies; they’ll no doubt be scrutinizing Harris’ record for signs of what stances her administration might take on such issues.

Silicon Valley donors have been increasingly vocal about their preferences around regulation of artificial intelligence, cryptocurrency and other technologies; they’ll no doubt be scrutinizing Harris’ record for signs of what stances her administration might take on such issues.

Tech heavyweights join Democratic leaders in lining up behind Kamala Harris

John Grisham, Jodi Picoult and George R.R. Martin are among 17 authors suing San Francisco&#8217;s OpenAI for &#8220;systematic theft on a mass scale,&#8221; the latest in a wave of legal action by writers concerned that artificial intelligence programs are using their copyrighted works without permission.

John Grisham, Jodi Picoult and George R.R. Martin are among 17 authors suing San Francisco's OpenAI for "systematic theft on a mass scale," the latest in a wave of legal action by writers concerned that artificial intelligence programs are using their copyrighted works without permission.

John Grisham, Jodi Picoult and George R.R. Martin are among 17 authors suing San Francisco&#8217;s OpenAI for &#8220;systematic theft on a mass scale,&#8221; the latest in a wave of legal action by writers concerned that artificial intelligence programs are using their copyrighted works without permission.

In papers filed Tuesday in federal court in New York, the authors alleged &#8220;flagrant and harmful infringements of plaintiffs&#8217; registered copyrights&#8221; and called ChatGPT a &#8220;massive commercial enterprise&#8221; that relies upon &#8220;systematic theft on a mass scale.&#8221;

In papers filed Tuesday in federal court in New York, the authors alleged "flagrant and harmful infringements of plaintiffs' registered copyrights" and called ChatGPT a "massive commercial enterprise" that relies upon "systematic theft on a mass scale."

In papers filed Tuesday in federal court in New York, the authors alleged &#8220;flagrant and harmful infringements of plaintiffs&#8217; registered copyrights&#8221; and called ChatGPT a &#8220;massive commercial enterprise&#8221; that relies upon &#8220;systematic theft on a mass scale.&#8221;

The suit was organized by the Authors Guild and also includes David Baldacci, Sylvia Day, Jonathan Franzen and Elin Hilderbrand among others.

The suit was organized by the Authors Guild and also includes David Baldacci, Sylvia Day, Jonathan Franzen and Elin Hilderbrand among others.

READ MORE: <a href="https://sfstandard.com/2023/06/30/openai-accused-of-misusing-personal-copyrighted-data-in-lawsuits/">ChatGPT Maker OpenAI Accused of Misusing Personal, Copyrighted Data&nbsp;</a>

ChatGPT maker OpenAI accused of misusing personal, copyrighted data

READ MORE: <a href="https://sfstandard.com/2023/06/30/openai-accused-of-misusing-personal-copyrighted-data-in-lawsuits/">ChatGPT Maker OpenAI Accused of Misusing Personal, Copyrighted Data&nbsp;</a>

&#8220;It is imperative that we stop this theft in its tracks or we will destroy our incredible literary culture, which feeds many other creative industries in the U.S.,&#8221; Authors Guild CEO Mary Rasenberger said in a written statement. &#8220;Great books are generally written by those who spend their careers and, indeed, their lives, learning and perfecting their crafts. To preserve our literature, authors must have the ability to control if and how their works are used by generative AI.&#8221;

"It is imperative that we stop this theft in its tracks or we will destroy our incredible literary culture, which feeds many other creative industries in the U.S.," Authors Guild CEO Mary Rasenberger said in a written statement. "Great books are generally written by those who spend their careers and, indeed, their lives, learning and perfecting their crafts. To preserve our literature, authors must have the ability to control if and how their works are used by generative AI."

&#8220;It is imperative that we stop this theft in its tracks or we will destroy our incredible literary culture, which feeds many other creative industries in the U.S.,&#8221; Authors Guild CEO Mary Rasenberger said in a written statement. &#8220;Great books are generally written by those who spend their careers and, indeed, their lives, learning and perfecting their crafts. To preserve our literature, authors must have the ability to control if and how their works are used by generative AI.&#8221;

The lawsuit cites specific ChatGPT searches for each author, such as one for Martin that alleges the program generated &#8220;an infringing, unauthorized and detailed outline for a prequel&#8221; to A Game of Thrones that was titled A Dawn of Direwolves and used &#8220;the same characters from Martin&#8217;s existing books in the series &#8220;A Song of Ice and Fire.&#8221;

The lawsuit cites specific ChatGPT searches for each author, such as one for Martin that alleges the program generated "an infringing, unauthorized and detailed outline for a prequel" to A Game of Thrones that was titled A Dawn of Direwolves and used "the same characters from Martin's existing books in the series "A Song of Ice and Fire."

The lawsuit cites specific ChatGPT searches for each author, such as one for Martin that alleges the program generated &#8220;an infringing, unauthorized and detailed outline for a prequel&#8221; to A Game of Thrones that was titled A Dawn of Direwolves and used &#8220;the same characters from Martin&#8217;s existing books in the series &#8220;A Song of Ice and Fire.&#8221;

In a statement Wednesday, an OpenAI spokesperson said that the company respects &#8220;the rights of writers and authors and believe they should benefit from AI technology.

In a statement Wednesday, an OpenAI spokesperson said that the company respects "the rights of writers and authors and believe they should benefit from AI technology.

In a statement Wednesday, an OpenAI spokesperson said that the company respects &#8220;the rights of writers and authors and believe they should benefit from AI technology.

&#8220;We&#8217;re having productive conversations with many creators around the world, including the Authors Guild, and have been working cooperatively to understand and discuss their concerns about AI. We&#8217;re optimistic we will continue to find mutually beneficial ways to work together to help people utilize new technology in a rich content ecosystem,&#8221; the statement reads.

"We're having productive conversations with many creators around the world, including the Authors Guild, and have been working cooperatively to understand and discuss their concerns about AI. We're optimistic we will continue to find mutually beneficial ways to work together to help people utilize new technology in a rich content ecosystem," the statement reads.

&#8220;We&#8217;re having productive conversations with many creators around the world, including the Authors Guild, and have been working cooperatively to understand and discuss their concerns about AI. We&#8217;re optimistic we will continue to find mutually beneficial ways to work together to help people utilize new technology in a rich content ecosystem,&#8221; the statement reads.

Earlier this month, a handful of authors that included Michael Chabon and David Henry Hwang sued OpenAI in San Francisco for &#8220;clear infringement of intellectual property.&#8221;

Earlier this month, a handful of authors that included Michael Chabon and David Henry Hwang sued OpenAI in San Francisco for "clear infringement of intellectual property."

Earlier this month, a handful of authors that included Michael Chabon and David Henry Hwang sued OpenAI in San Francisco for &#8220;clear infringement of intellectual property.&#8221;

In August, OpenAI asked a federal judge in California to dismiss two similar lawsuits, one involving comedian Sarah Silverman and another from author Paul Tremblay. In a court filing, OpenAI said the claims &#8220;misconceive the scope of copyright, failing to take into account the limitations and exceptions (including fair use) that properly leave room for innovations like the large language models now at the forefront of artificial intelligence.&#8221;

In August, OpenAI asked a federal judge in California to dismiss two similar lawsuits, one involving comedian Sarah Silverman and another from author Paul Tremblay. In a court filing, OpenAI said the claims "misconceive the scope of copyright, failing to take into account the limitations and exceptions (including fair use) that properly leave room for innovations like the large language models now at the forefront of artificial intelligence."

In August, OpenAI asked a federal judge in California to dismiss two similar lawsuits, one involving comedian Sarah Silverman and another from author Paul Tremblay. In a court filing, OpenAI said the claims &#8220;misconceive the scope of copyright, failing to take into account the limitations and exceptions (including fair use) that properly leave room for innovations like the large language models now at the forefront of artificial intelligence.&#8221;

Author objections to AI have helped lead <a href="http://amazon.com/" target="_blank" rel="noreferrer noopener">Amazon.com</a>, the country&#8217;s largest book retailer, to change its policies on e-books. The online giant is now asking writers who want to publish through its Kindle Direct Program to notify Amazon in advance that they are including AI-generated material. Amazon is also limiting authors to three new self-published books on Kindle Direct per day, an effort to restrict the proliferation of AI texts.

Author objections to AI have helped lead <a href="http://amazon.com/" target="_blank" rel="noreferrer noopener">Amazon.com</a>, the country's largest book retailer, to change its policies on e-books. The online giant is now asking writers who want to publish through its Kindle Direct Program to notify Amazon in advance that they are including AI-generated material. Amazon is also limiting authors to three new self-published books on Kindle Direct per day, an effort to restrict the proliferation of AI texts.

Author objections to AI have helped lead <a href="http://amazon.com/" target="_blank" rel="noreferrer noopener">Amazon.com</a>, the country&#8217;s largest book retailer, to change its policies on e-books. The online giant is now asking writers who want to publish through its Kindle Direct Program to notify Amazon in advance that they are including AI-generated material. Amazon is also limiting authors to three new self-published books on Kindle Direct per day, an effort to restrict the proliferation of AI texts.

‘Game of Thrones’ author, other writers sue ChatGPT parent company

If you’re a California resident, you use tax-funded roads, schools and other services, so you’re on the Silicon Valley financial roller coaster whether you know it or not.

If you’re a California resident, you use tax-funded roads, schools and other services, so you’re on the Silicon Valley financial roller coaster whether you know it or not.

The tech industry has contributed an increasing amount to the state budget, and even the way tech companies pay their employees has become a growing source of the state’s income tax revenue, a new analysis shows.

The tech industry has contributed an increasing amount to the state budget, and even the way tech companies pay their employees has become a growing source of the state’s income tax revenue, a new analysis shows.

Many tech companies pay their employees base wages as well as stock options. Vested stock options—options that have matured and are fully owned by employees, who can choose to sell them—are treated like ordinary income for tax purposes. Companies must pay withholding taxes on part of that income to state and federal governments. Last year, those taxes paid by the four largest tech companies in the state—Apple, Google, Meta and Nvidia—grew to at least $5 billion, making up more than 6% of all of the state’s income-tax withholding, the Legislative Analyst’s Office <a href="https://lao.ca.gov/LAOEconTax/Article/Detail/789" target="_blank" rel="noreferrer noopener">estimated</a>.

Many tech companies pay their employees base wages as well as stock options. Vested stock options—options that have matured and are fully owned by employees, who can choose to sell them—are treated like ordinary income for tax purposes. Companies must pay withholding taxes on part of that income to state and federal governments. Last year, those taxes paid by the four largest tech companies in the state—Apple, Google, Meta and Nvidia—grew to at least $5 billion, making up more than 6% of all of the state’s income-tax withholding, the Legislative Analyst’s Office <a href="https://lao.ca.gov/LAOEconTax/Article/Detail/789" target="_blank" rel="noreferrer noopener">estimated</a>.

That’s up from 4% to 5% pre-pandemic, has more than doubled since 2016 and quadrupled over the past decade. That increase has come as those companies have grown tremendously in market value—the four of them are now worth more than $7 trillion. Last year, the withholding taxes they paid helped offset the effects of fewer initial public offerings on the state’s revenue.

That’s up from 4% to 5% pre-pandemic, has more than doubled since 2016 and quadrupled over the past decade. That increase has come as those companies have grown tremendously in market value—the four of them are now worth more than $7 trillion. Last year, the withholding taxes they paid helped offset the effects of fewer initial public offerings on the state’s revenue.

Chas Alamo, principal fiscal and policy analyst for the office, did the analysis. He said that if he had the resources to do a deeper dive and had tallied the stock-equity withholding from all large tech companies in the state instead of just the biggest four, it might make up as much as 10% of all income-tax withholding. That’s on top of what the tech industry contributes to the state’s personal income-tax revenue, which makes it even more dependent on tech’s ups and downs.

Chas Alamo, principal fiscal and policy analyst for the office, did the analysis. He said that if he had the resources to do a deeper dive and had tallied the stock-equity withholding from all large tech companies in the state instead of just the biggest four, it might make up as much as 10% of all income-tax withholding. That’s on top of what the tech industry contributes to the state’s personal income-tax revenue, which makes it even more dependent on tech’s ups and downs.

Historically, “withholding has been a stable barometer of how the state’s economy is doing,” Alamo said. “It hasn’t been subject to the volatility of the stock market. But that has changed over the last several years.”

Historically, “withholding has been a stable barometer of how the state’s economy is doing,” Alamo said. “It hasn’t been subject to the volatility of the stock market. But that has changed over the last several years.”

All Californians have a stake in the health of the tech industry, because the state relies so heavily on personal income taxes for revenue. In light of a&nbsp;<a href="https://calmatters.org/politics/2024/01/newsom-budget-california/" target="_blank" rel="noreferrer noopener">multibillion-dollar budget deficit</a>&nbsp;and mixed signals around tech—which on the one hand continues to lay off employees but on the other hand is seeing an artificial-intelligence boom that has translated into gains on Wall Street—income-tax withholding from both tech employee wages as well as the withholding from their stock options matter more than ever.

All Californians have a stake in the health of the tech industry, because the state relies so heavily on personal income taxes for revenue. In light of a&nbsp;<a href="https://calmatters.org/politics/2024/01/newsom-budget-california/" target="_blank" rel="noreferrer noopener">multibillion-dollar budget deficit</a>&nbsp;and mixed signals around tech—which on the one hand continues to lay off employees but on the other hand is seeing an artificial-intelligence boom that has translated into gains on Wall Street—income-tax withholding from both tech employee wages as well as the withholding from their stock options matter more than ever.

Pinpointing exactly how much tech-industry employment contributes to the state’s coffers can be tricky because tech companies have many different types of employees, but consider this: Software developers in the state earned about $48.9 billion, based on average annual earnings of about $190,000, according to data from the Employment Development Department as of the first quarter of last year. That total from just one segment of the industry was more than what the state received in total income-tax revenue from all sectors of the labor force through November: $47.2 billion, according to the&nbsp;<a href="https://www.sco.ca.gov/2023Nov_personal_income_tax_tracker.html" target="_blank" rel="noreferrer noopener">state controller’s tracker</a>.

Pinpointing exactly how much tech-industry employment contributes to the state’s coffers can be tricky because tech companies have many different types of employees, but consider this: Software developers in the state earned about $48.9 billion, based on average annual earnings of about $190,000, according to data from the Employment Development Department as of the first quarter of last year. That total from just one segment of the industry was more than what the state received in total income-tax revenue from all sectors of the labor force through November: $47.2 billion, according to the&nbsp;<a href="https://www.sco.ca.gov/2023Nov_personal_income_tax_tracker.html" target="_blank" rel="noreferrer noopener">state controller’s tracker</a>.

As for the rise in stock-equity withholding, it was the result of a great 2023 for the large tech companies whose financial filings Alamo analyzed, especially Meta and Nvidia. Shares in chip company Nvidia, whose graphics processing units dominate the artificial intelligence market, ended last year up about 239% from the previous year. Facebook parent company Meta’s investments in artificial intelligence helped propel its stock 198% higher year over year. Meanwhile, the stock of Apple and Google ended 2023 up 49% and 59% year over year, respectively.

As for the rise in stock-equity withholding, it was the result of a great 2023 for the large tech companies whose financial filings Alamo analyzed, especially Meta and Nvidia. Shares in chip company Nvidia, whose graphics processing units dominate the artificial intelligence market, ended last year up about 239% from the previous year. Facebook parent company Meta’s investments in artificial intelligence helped propel its stock 198% higher year over year. Meanwhile, the stock of Apple and Google ended 2023 up 49% and 59% year over year, respectively.

If artificial intelligence continues to lead to stock-market gains for tech companies, the state will keep reaping the rewards.

If artificial intelligence continues to lead to stock-market gains for tech companies, the state will keep reaping the rewards.

<h2 class="wp-block-heading" id="h-the-next-wave-of-growth">&#8216;The Next Wave of Growth&#8217;</h2>

<h2 class="wp-block-heading" id="h-the-next-wave-of-growth">'The Next Wave of Growth'</h2>

<h2 class="wp-block-heading" id="h-the-next-wave-of-growth">&#8216;The Next Wave of Growth&#8217;</h2>

Some experts and economists are plenty optimistic about artificial intelligence.

Some experts and economists are plenty optimistic about artificial intelligence.

“AI is going to power the next wave of economic growth in the state and nation,” said Ahmad Thomas, chief executive of Silicon Valley Leadership Group, a tech policy advocacy group whose hundreds of member companies include some of the biggest names in tech and business. Thomas called the Bay Area the epicenter of artificial intelligence because most hot startups in the space are based in San Francisco or elsewhere in the Bay Area.

“AI is going to power the next wave of economic growth in the state and nation,” said Ahmad Thomas, chief executive of Silicon Valley Leadership Group, a tech policy advocacy group whose hundreds of member companies include some of the biggest names in tech and business. Thomas called the Bay Area the epicenter of artificial intelligence because most hot startups in the space are based in San Francisco or elsewhere in the Bay Area.

Stephen Levy, longtime economist and director of the Center for Continuing Study of the California Economy, an independent, private research organization, said that despite more than 260,000 layoffs in the tech industry worldwide last year,&nbsp;<a href="https://layoffs.fyi/" target="_blank" rel="noreferrer noopener">according to one count</a>, the number of tech jobs is now higher than what it was before the coronavirus pandemic.

Stephen Levy, longtime economist and director of the Center for Continuing Study of the California Economy, an independent, private research organization, said that despite more than 260,000 layoffs in the tech industry worldwide last year,&nbsp;<a href="https://layoffs.fyi/" target="_blank" rel="noreferrer noopener">according to one count</a>, the number of tech jobs is now higher than what it was before the coronavirus pandemic.

That’s echoed by the California Center for Jobs and the Economy, the information arm of the California Business Roundtable, an advocacy organization made up of top executives of the state’s major employers. The center says there were about 1.4 million jobs it considers part of the tech industry as of November 2023, about 76,000 more than the total tech jobs in the state in February 2020.

That’s echoed by the California Center for Jobs and the Economy, the information arm of the California Business Roundtable, an advocacy organization made up of top executives of the state’s major employers. The center says there were about 1.4 million jobs it considers part of the tech industry as of November 2023, about 76,000 more than the total tech jobs in the state in February 2020.

Levy said there is a “rebalancing” that’s going on in tech after all the hiring companies did during the pandemic, but that electric vehicles, cleantech infrastructure and artificial intelligence are “three areas (where he expects) massive amounts of money over the next five years.”

Levy said there is a “rebalancing” that’s going on in tech after all the hiring companies did during the pandemic, but that electric vehicles, cleantech infrastructure and artificial intelligence are “three areas (where he expects) massive amounts of money over the next five years.”

The budget Gov. Gavin Newsom proposed on Wednesday mentioned expectations for continued slower and more moderate job growth, which his staff also attributed to “reverting to historical trends as the labor market is now in the post-pandemic recovery period.”

The budget Gov. Gavin Newsom proposed on Wednesday mentioned expectations for continued slower and more moderate job growth, which his staff also attributed to “reverting to historical trends as the labor market is now in the post-pandemic recovery period.”

<h2 class="wp-block-heading" id="h-ipos-could-make-a-comeback">IPOs Could Make a Comeback</h2>

In the past couple of years, fewer initial public offerings for companies in California—195 in 2021 vs. 30 in 2023, according to&nbsp;<a href="https://pitchbook.com/news/reports/q3-2023-pitchbook-nvca-venture-monitor" target="_blank" rel="noreferrer noopener">data from PitchBook</a>, which keeps track of capital markets—have meant fewer newly minted multimillionaire tech employees and less state revenue from income-tax withholding and capital gains, which is the profit investors make when they sell stock.

In the past couple of years, fewer initial public offerings for companies in California—195 in 2021 vs. 30 in 2023, according to&nbsp;<a href="https://pitchbook.com/news/reports/q3-2023-pitchbook-nvca-venture-monitor" target="_blank" rel="noreferrer noopener">data from PitchBook</a>, which keeps track of capital markets—have meant fewer newly minted multimillionaire tech employees and less state revenue from income-tax withholding and capital gains, which is the profit investors make when they sell stock.

PitchBook’s 2024 venture capital outlook, though, said that if inflation continues to ease and the Federal Reserve does not raise interest rates, IPOs could make a comeback.

PitchBook’s 2024 venture capital outlook, though, said that if inflation continues to ease and the Federal Reserve does not raise interest rates, IPOs could make a comeback.

Yet Alamo, of the Legislative Analyst’s Office, cautioned that just as companies’ stock-price surges can result in a bump in revenue from withholding, “the same could happen on the opposite side.”

Yet Alamo, of the Legislative Analyst’s Office, cautioned that just as companies’ stock-price surges can result in a bump in revenue from withholding, “the same could happen on the opposite side.”

That’s one reason the Center for Jobs and the Economy has warned against the state’s heavy dependence on one region, and has said the state needs to regulate—and spend—less.

That’s one reason the Center for Jobs and the Economy has warned against the state’s heavy dependence on one region, and has said the state needs to regulate—and spend—less.

The tech-heavy Bay Area contributes more than 40% of personal income-tax revenue to the state, according to U.S. Bureau of Economic Analysis figures cited by the group. And, as Newsom’s budget also pointed out this week, the top 1% earners in the state, most of whose income comes from stock-based compensation and capital gains, contributed half of all personal income taxes to the state in 2021.

The tech-heavy Bay Area contributes more than 40% of personal income-tax revenue to the state, according to U.S. Bureau of Economic Analysis figures cited by the group. And, as Newsom’s budget also pointed out this week, the top 1% earners in the state, most of whose income comes from stock-based compensation and capital gains, contributed half of all personal income taxes to the state in 2021.

“The problem is it really disguises the true economy of California,” said Brooke Armour, president of the California Center for Jobs and the Economy. “When you have one small part of the economy that carries the state, that papers over the affordability crisis.”

“The problem is it really disguises the true economy of California,” said Brooke Armour, president of the California Center for Jobs and the Economy. “When you have one small part of the economy that carries the state, that papers over the affordability crisis.”

California is becoming more and more dependent on tax revenue from tech. Here are the numbers

Khari Johnson

A constant hum fills the air at California’s tax agency this time of year — phones ring and keyboards clack as hundreds of thousands of Californians and businesses seek tax guidance.

A constant hum fills the air at California’s tax agency this time of year — phones ring and keyboards clack as hundreds of thousands of Californians and businesses seek tax guidance.

Call volume quadruples to up to 10,000 a day; average wait times soar from four minutes to 20. “Right from the get-go when the bell rings at 7:30 you (already) have a wait,” said call center chief Thor Dunn, adding that workers with other jobs are trained to hop on the phones during peak periods. “All hands on deck.”

Call volume quadruples to up to 10,000 a day; average wait times soar from four minutes to 20. “Right from the get-go when the bell rings at 7:30 you (already) have a wait,” said call center chief Thor Dunn, adding that workers with other jobs are trained to hop on the phones during peak periods. “All hands on deck.”

So later this year — for next tax season — California’s 3,696-person Department of Tax and Fee Administration plans to use generative artificial intelligence to advise its approximately 375 call center agents on state tax code. The AI will then inform what they pass on to California business owners asking for tax guidance.

So later this year — for next tax season — California’s 3,696-person Department of Tax and Fee Administration plans to use generative artificial intelligence to advise its approximately 375 call center agents on state tax code. The AI will then inform what they pass on to California business owners asking for tax guidance.

Trained with massive datasets often scraped from the web without consent from authors, generative artificial intelligence models can generate content like text, imagery, and audio. A large language model such as OpenAI’s ChatGPT, which ignited interest in generative AI following its release in fall 2022, essentially predicts the next word in a sequence of input text then outputs or generates text that reflects the training data.

Trained with massive datasets often scraped from the web without consent from authors, generative artificial intelligence models can generate content like text, imagery, and audio. A large language model such as OpenAI’s ChatGPT, which ignited interest in generative AI following its release in fall 2022, essentially predicts the next word in a sequence of input text then outputs or generates text that reflects the training data.

What form would that take for you, the person calling in to the tax center? The tax department told CalMatters this technology will not be used without a call center employee there to review the answer, but a slide in its&nbsp;<a href="https://caleprocure.ca.gov/event/77601/0000029440">call for proposals</a>&nbsp;seeking a vendor says any AI solution must “be able to provide responses to incoming voice calls, live chats, and other communications.”&nbsp;

What form would that take for you, the person calling in to the tax center? The tax department told CalMatters this technology will not be used without a call center employee there to review the answer, but a slide in its&nbsp;<a href="https://caleprocure.ca.gov/event/77601/0000029440">call for proposals</a>&nbsp;seeking a vendor says any AI solution must “be able to provide responses to incoming voice calls, live chats, and other communications.”&nbsp;

That&nbsp;<a href="https://caleprocure.ca.gov/event/77601/0000029440">request for proposals</a>, aimed at creating an AI to help the state with taxes, went out last month. Initial proposals are due this week and the process is scheduled to finish in April. A meeting with potential vendors attracted 100 attendees last month, department spokesperson Tamma Adamek told CalMatters.&nbsp;

That&nbsp;<a href="https://caleprocure.ca.gov/event/77601/0000029440">request for proposals</a>, aimed at creating an AI to help the state with taxes, went out last month. Initial proposals are due this week and the process is scheduled to finish in April. A meeting with potential vendors attracted 100 attendees last month, department spokesperson Tamma Adamek told CalMatters.&nbsp;

The tax advice AI proposal is one of five proofs of concept California has launched to explore how state agencies can use generative AI, says California Department of Technology director and state chief information officer Liana Bailey-Crimmins. Caltrans has two projects to explore if generative AI can reduce&nbsp;<a href="https://caleprocure.ca.gov/event/77601/0000029441">traffic congestion and fatal accidents</a>&nbsp;and the state’s Health and Human Services Agency has two trials underway to explore if generative AI can make it easier for people to understand and attain public benefits, and assist in health care facility inspections.

The tax advice AI proposal is one of five proofs of concept California has launched to explore how state agencies can use generative AI, says California Department of Technology director and state chief information officer Liana Bailey-Crimmins. Caltrans has two projects to explore if generative AI can reduce&nbsp;<a href="https://caleprocure.ca.gov/event/77601/0000029441">traffic congestion and fatal accidents</a>&nbsp;and the state’s Health and Human Services Agency has two trials underway to explore if generative AI can make it easier for people to understand and attain public benefits, and assist in health care facility inspections.

The winning AI tax proposal vendor will get a six-month contract, then state officials will determine if a larger contract is warranted. The project must demonstrate shorter calls and wait times and abandoned calls and vendors must “monitor and report on GenAI solution responses for factual accuracy, coherence, and appropriateness.”

The winning AI tax proposal vendor will get a six-month contract, then state officials will determine if a larger contract is warranted. The project must demonstrate shorter calls and wait times and abandoned calls and vendors must “monitor and report on GenAI solution responses for factual accuracy, coherence, and appropriateness.”

The project is the start of a years-long, iterative AI regulation and adoption process that Gov. Gavin Newsom kicked off last fall. The&nbsp;<a href="https://www.gov.ca.gov/wp-content/uploads/2023/09/AI-EO-No.12-_-GGN-Signed.pdf">executive order he issued</a>&nbsp;requires state agencies to explore ways to use generative AI by July.&nbsp;

The project is the start of a years-long, iterative AI regulation and adoption process that Gov. Gavin Newsom kicked off last fall. The&nbsp;<a href="https://www.gov.ca.gov/wp-content/uploads/2023/09/AI-EO-No.12-_-GGN-Signed.pdf">executive order he issued</a>&nbsp;requires state agencies to explore ways to use generative AI by July.&nbsp;

To limit risks, private companies awarded contracts will train AI models in a “sandbox” hosted on state servers,&nbsp; made to meet information security and monitoring standards set by the technology department. Newsom’s executive order directs the technology department to release the sandbox in March for use by companies awarded contracts.

To limit risks, private companies awarded contracts will train AI models in a “sandbox” hosted on state servers,&nbsp; made to meet information security and monitoring standards set by the technology department. Newsom’s executive order directs the technology department to release the sandbox in March for use by companies awarded contracts.

<h2 class="wp-block-heading" id="h-ai-risk-evaluation">AI risk evaluation</h2>

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California is becoming more and more dependent on tax revenue from tech. Here are the numbers

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