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Encode's ambitious SB1047 bill was vetoed, but the effort wasn't a failure. It primed the legislature, built a powerful coalition, and put AI regulation on the governor's radar. This "delayed payoff" from the initial failure was essential for passing the subsequent, successful SB53 bill.

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Encode AI found its initial grassroots model with young volunteers was difficult to convert into tangible political outcomes. They shifted to a professionalized approach, building coalitions with established groups that already have clear stances, which proved significantly more effective.

Despite the risk of a fragmented legal landscape, the slow pace of federal AI legislation makes state-level action essential. States are acting as "laboratories of democracy," pioneering regulatory approaches that can later inform a much-needed national framework.

Contrary to the belief that advocates are always "outside the room," California's legislative process allows organizations to act as co-sponsors on bills. This unique feature gave Encode AI an inside role in shaping AI safety laws, from drafting and negotiating to influencing implementation.

Encode successfully fought federal preemption of state AI laws by uniting "strange bedfellows" like conservatives, parents of children harmed by AI, and artists. Rallying diverse groups with different end goals against a single, shared threat is a powerful political strategy for blocking unfavorable policy.

In the absence of federal leadership, Governor Newsom's administration has pushed through legislation to regulate large language and frontier AI models, focusing on transparency and safety. This positions California, home to the AI industry, as the primary rule-maker for a technology its own founders call potentially dangerous.

Introducing legislation in Congress isn't always about immediate passage. Bills frequently function as messaging vehicles to build awareness and support for an idea over several congressional terms. This gradual process allows for the evolution of major policy, like the creation of new government agencies, which rarely happens in a single two-year cycle.

Rather than setting a low standard, passing AI safety laws in states like California creates a strong baseline. This gives advocates leverage to demand an even stronger federal framework, as anything weaker would be a non-starter for stakeholders who oppose federal preemption.

Facing a federal vacuum on AI policy, major players like OpenAI and Google are surprisingly endorsing state-level regulations in California and New York. This counter-intuitive move serves two purposes: it creates a manageable, de facto national standard they can influence, and it pressures a gridlocked Congress to finally act to avoid a messy patchwork of state laws.

AI policy has evolved from a niche topic into a viable campaign issue for ambitious state-level politicians. The sponsors of both New York's RAISE Act and California's SB 53 are leveraging their legislative victories on AI to run for U.S. Congress, signaling a new era where AI regulation is a key part of a politician's public platform.

Rather than a serious policy goal, the extreme proposal to halt all data center construction is likely a political tactic. By anchoring the conversation on a far end of the spectrum, it creates negotiating room for more moderate, yet still significant, AI regulations to be accepted as a compromise.