OpenAI Backs California Bill to Watermark AI-Generated Content

OpenAI is backing California’s bill AB 3211, which would mandate that tech companies add labels to AI-generated content created by their technology.   

Advocates of the bill argue the initiative is a major step towards improving content transparency and building trust in digital media and on social media platforms. This kind of legislation could have major implications for the future of work, particularly in fields like content creation, digital marketing, and political communications.  

Reuters reports that the proposed legislation requires tech companies to embed watermarks in AI-generated content — from memes to potentially harmful deepfakes — that can mislead voters about political candidates.  

The watermarking requirement aims to provide a clear distinction between human-created content and AI-created content, thereby mitigating the risk of the technology spreading misinformation.  

It’s possible that by mandating watermarks on AI-generated content, the bill will lead to stricter regulations and higher compliance costs for businesses that already rely heavily on AI-related tools.    

The bill, introduced by California Assembly member Buffy Wicks, has previously garnered unanimous backing: The bill passed the state assembly with a 62-0 vote.   

OpenAI’s support for this bill differs greatly from its stance on another AI-related California bill, SB 1047, which would require AI developers to run strict safety tests on their models. 

A letter from OpenAI’s Chief Strategy Office Jason Kwon to California State Senator Scott Wiener, first reported by Bloomberg, reveals the company believes the safety bill would severely hurt its ability to keep pace with competitors. 

“The AI revolution is only just beginning, and California’s unique status as the global leader in AI is fueling the state’s economic dynamism,” Kwon said. “SB 1047 would threaten that growth, slow the pace of innovation, and lead California’s world-class engineers and entrepreneurs to leave the state in search of greater opportunity elsewhere.” 

OpenAI, along with Microsoft, has criticized SB 1047, showing how the tech industry is generally wary of strict regulations regarding developmental safety. However, by backing AB 3211, OpenAi reveals its open to some regulations that focus on content transparency. 

For the workforce, these developments could lead to new roles focused on compliance and content verification as companies will likely need to ensure their AI tools properly identify and label AI-generated content. If passed, it could influence other states to push for similar measures that ensure content transparency. 

The bill has passed the Senate appropriations committee and is poised for a full Senate vote. Should it succeed, the legislation will be presented to Governor Gavin Newsom for signing into law by September 30.