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World of Software > News > The First Regulatory AI Bill Just Took Effect in California
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The First Regulatory AI Bill Just Took Effect in California

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Last updated: 2025/09/30 at 1:36 PM
News Room Published 30 September 2025
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The First Regulatory AI Bill Just Took Effect in California
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Could Federal Policy Around AI Follow Suit?

In a signing message to the state Senate, Newsom wrote that California’s position in the tech world gives it the opportunity “to provide a blueprint for well-balanced AI policies beyond our borders – especially in the absence of a comprehensive federal AI policy.” Newsom also said that the new bill fills a gap left by Congress, which so far has failed to pass any AI legislation on a federal level.

As AI companies continue to develop at a fast pace, and safety around systems becomes more of a concern, California could pave the way for more AI legislation on a federal level.

However, it could also set a discerning precedent that states will have to “take the lead in governing the national AI market” as opposed to Congress. As a result, startups may have to navigate various “patchwork” compliance regimes, according to Colin McCune, head of government affairs at Silicon Valley venture capital firm Andreessen Horowitz.

It could also mean that businesses in different states could be subject to different laws when using AI, which could make expanding and scaling specific tools difficult in the long run.

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