OpenAI, Adobe (ADBE), and Microsoft (MSFT) have expressed their support for a California bill that mandates tech companies to label AI-generated content, according to an exclusive TechCrunch report. This legislation, known as AB 3211, is scheduled for a final vote in August.
What Is the AI Bill AB 3211 About?
Moving on to the specifics, AB 3211 would require watermarks to be embedded in the metadata of AI-generated images, videos, and audio. Metadata is a set of data that describes and gives information about images, video, and audio, and is already utilized by many AI companies for this purpose. However, this often goes unnoticed by the general public. To bridge this gap, AB 3211 also mandates that major online platforms, such as Meta’s (META) Instagram and X, must clearly label AI-generated content in a way that is easily understandable to average users.
Coalition of Tech Companies to Develop Standard for Identifying AI Content
Furthermore, OpenAI, Adobe, and Microsoft are members of the Coalition for Content Provenance and Authenticity (C2PA), which played a key role in developing a widely adopted standard for identifying AI-generated content through metadata.
Previously, in April, a trade group representing Adobe, Microsoft, and the nation’s largest software makers opposed AB 3211, describing it as “unworkable” and “overly burdensome” in a letter to California lawmakers. However, recent amendments to the bill have led these companies to reverse their stance and now back the proposed legislation.
Musk Also Voices Support for the Bill
In a related development, Elon Musk has voiced his support for California’s SB 1047, a bill that would require developers of large AI models to implement and document safeguards to prevent those models from causing significant harm.
“This is a tough call and will make some people upset, but, all things considered, I think California should probably pass the SB 1047 AI safety bill,” Musk posted on X on Monday.
Even though Musk plans to move xAI’s operations out of California, his company would still be subject to SB 1047’s requirements. Nevertheless, he has consistently warned about the dangers of unchecked AI development.
Is Microsoft a Buy, Sell or Hold?
Analysts remain bullish about MSFT stock, with a Strong Buy consensus rating based on a unanimous 30 Buys. Over the past year, MSFT has increased by more than 20%, and the average MSFT price target of $505.26 implies an upside potential of 22.2% from current levels.
