California Will Temper AI Policy by Studying Industry Impact

California’s aim to be at the forefront of regulating artificial intelligence will be moderated by its economic impact, as the sector plays an increasingly important role in the state, home to Silicon Valley and the nation’s top AI companies.

Gov. Gavin Newsom (D) intends to defend the state’s leadership in the field, said Jason Elliott, the governor’s deputy chief of staff, in an interview.

Newsom, a former mayor of San Francisco, will consider negative economic repercussions for any AI when decision on legislation that ends up on his desk, Elliott said. Those determinations will be made on a case-by-case basis, ...