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Former Speaker of the House Nancy Pelosi is speaking out against a California bill that seeks to regulate artificial intelligence.
Here’s what she said and how her opinion might relate to her own investments.
What Happened: The trading activity of Pelosi and her husband Paul Pelosi could come under a new spotlight, as the former House speaker speaks out against California Senate Bill 1047.
“AI has been a central policy focus of the president and the Congress for the past two years. President [Joe] Biden has taken the lead in addressing AI’s prospects and problems, receiving intellectual, business and community leaders to share their views,” Pelosi said.
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Pelosi said Congress has brought in experts from private and public companies to share the opportunities and challenges of AI.
“The review is coming down to if and what standards and guardrails should Congress legislate. In addition to focusing on protections, we wanted to pursue improving AI.”
Pelosi said SB 1047 is “well-intentioned but ill informed” according to herself and several other members of Congress.
“Prominent California leaders have spoken out, including Representatives Anna Eshoo and Ro Khanna who have joined other House Members in a letter to Governor Gavin Newsom opposing the bill. While we all want California to lead in AI in a way that protects consumers, data, intellectual property and more, SB 1047 is more harmful than helpful in that pursuit.”
The new California bill could “stifle innovation” and harm the AI ecosystem, according to Stanford University scholar Fei-Fei Li, considered the “Godmother of AI” by some, as shared by Pelosi.
“AI springs from California. We must have legislation that is a model for the nation and the world. We have the opportunity and responsibility to enable small entrepreneurs and academia – not big tech – to dominate.”
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Why It’s Important: Pelosi’s comments on the bill could be controversial for two reasons.
The bill was introduced in California state congress by state Senator Scott Weiner, a Democrat who is expected to run for Pelosi’s Congressional seat when she steps down from office. Weiner could challenge Pelosi’s daughter Christine Pelosi, who is also widely expected to run for her mother’s seat, according to a New York Post report.
Weiner disagreed with Pelosi’s comments and issued a rebuttal.
“Innovation and safety are not mutually exclusive, and I reject the false claim that in order to innovate, we must leave safety solely in the hands of technology companies and venture capitalists,” Weiner said.
Pelosi is an investor in several companies exposed to the artificial intelligence sector.
One of her largest disclosed positions is in NVIDIA Corporation (NASDAQ:NVDA), a semiconductor company benefiting from growth of the AI sector.
Pelosi disclosed buying 10,000 NVDA shares in June and another 10,000 shares in July. The Pelosis also previously bought NVDA calls in 2023 and had a prior position in the company that was sold due to investor pressure over the timing of the trade related to the CHIPS Act.
Disclosures also show Pelosi owning stakes in Broadcom Inc (NASDAQ:AVGO) and Palo Alto Networks (NASDAQ:PANW), companies that could benefit from AI growth.
Pelosi also disclosed a $1 million to $5 million investment in privately owned Databricks, an analytics and AI company.
The battle for regulation of the AI industry comes with constant pushback as the U.S. wants to be a leader and see its companies profit, but also seeks to protect consumers and the future of the industry.
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This article Nancy Pelosi Criticizes California AI Regulation As ‘Well-Intentioned But Ill-Informed’: Would Bill Hurt Her Tech Investments? originally appeared on Benzinga.com
