California's AI Balancing Act: Regulating Innovation Without Crippling Progress
California's proposed Senate Bill 1047 aims to regulate AI based on computational power, a metric that audit and assurance professionals should view with caution. This approach risks stifling innovation and misidentifying true risks, highlighting the need for a more nuanced, risk-based framework that considers the evolving nature of AI and its potential for bias, privacy violations, and security vulnerabilities. Internal auditors should advocate for adaptable regulations that focus on high-risk applications and foster collaboration among diverse stakeholders.