Bay Area Leads AI VC Funding, CA Improving Govt Services with AI, and a New Roadmap for Federal AI Policy

Welcome to SV-AI (Silicon Valley - Accelerates Innovation), my newsletter focused on the responsible development and deployment of innovations strengthening California's global competitive edge. Please subscribe to receive upcoming editions. Here, I’ll share tech policy news and leadership insights that you need to know and how technologies, like Artificial Intelligence, are being used IRL. In this edition, I discuss new data on AI VC funding, how California is embracing Generative AI, and a new report focused on AI policy at the federal level.?

AI 101?

There’s a lot to keep track of when it comes to AI and its potential global regulation. Recently, I came across leading law firm White & Case’s “AI Watch: Global Regulatory Tracker .” The tracker serves as a one-stop shop for anyone looking to brush up on the status of AI policy in any given country, including the US , Australia , France , and China . I think this is a great resource, which is particularly helpful for tracking regulatory developments outside of the US.?

I loved Stanford professor and AI leader Fei-Fei Li’s TEDTalk on AI and spatial intelligence or “the concept of being able to successfully perceive and derive insight from visual data.” Listen here to find out how AI could interact with humans in the future. It’s quite a thought provoking, well-delivered, and insightful presentation.???

Bay Area Leads AI VC Deals?

According to new funding data from Crunchbase, San Francisco remains the undisputed leader in AI innovation. In 2023, companies headquartered in the Bay Area received more than 50% of all global venture funding, raising more than $27 billion. The Bay Area alone saw more funding deals than all countries outside the US.?

This is in some part due to the success of a few prominent startups. But I also think it speaks to our region’s track record as the place where innovation thrives. Top researchers, academics, investors, and entrepreneurs continue to flock to the Bay Area, ensuring that it remains the “center of gravity” for AI.?

My steadfast view is that we should not take this for granted however; and, our local and state policies should reflect the same level of innovation vis-a-vis incentives, investment, and business competitiveness to encourage more companies and more workers to locate here.???

US and China Talk AI?

Top officials representing the U.S. and China met in Geneva this week for talks focused on (what else?) artificial intelligence. Presidents Biden and Xi Jinping agreed to the talks last year while in San Francisco for APEC 2023.?

According to the Financial Times , the U.S. delegation is being led by Tarun Chhabra, the National Security Council senior director for technology and national security, and Seth Center, the State Department’s special envoy for critical and emerging technologies. The talks, while behind closed doors, are expected to cover how to leverage the transformative power of AI while managing its potential risks.?

Keep in mind that tensions between the two superpowers remain high, particularly around defense/military, chip manufacturing, and electric vehicles. So it will be interesting to see what, if anything, the two countries can agree upon when it comes to the future of AI.?

A Roadmap for Federal AI Policy?

This week, a bipartisan group of U.S. senators released a highly anticipated report , titled “Driving U.S. Innovations in Artificial Intelligence Policy in the United States.” The report comes after a series of AI forums led by Majority Leader Chuck Schumer (D-NY).?

A few noteworthy items:

• I think it’s unlikely that Congress will pass one comprehensive bill regulating AI. Rather, I expect to see individual bills that address specific topics.?
• The report calls for $32 billion a year in funding for non-defense AI innovation.
• The report also calls for more funding for AI research and development, including fully funding the CHIPS and Science Act which Congress failed to do during the appropriations process.?
• Additional policy priorities include addressing deepfakes and AI election content; building a skilled workforce; and passing a comprehensive data privacy bill.?

While the report is a significant step, I don’t expect a sudden break in the DC logjam.?

AI bills will be complex and passing significant legislation during an election year is a real challenge.?

AI IRL

Californians could soon be thanking Generative AI for improved traffic flows, increased road safety, and for help filing their taxes.?

The state has tapped five AI companies to test and potentially deploy GenAI tools to improve government service delivery. After a six-month evaluation period, the state will be able to reassess whether or not to deploy the tools.?

The new agreements are the latest step by Governor Newsom to demonstrate CA’s AI leadership following his executive order last year.?

Final Thoughts?

This week, I had the pleasure of speaking with Secretary General of the International Telecommunication Union (ITU) Doreen Bogdean-Martin during a roundtable we partnered on with SVLG member company Cisco. We discussed a range of global information and communications technology policy issues, including AI, digital connectivity, and other emerging technologies. I look forward to having more fascinating conversations like this one on the technologies transforming our society, and I commend both Cisco and the Secretary General for their impressive body of work connected to AI for Good.?

Finally, our podcast Silicon Valley Vibes is back with a brand new season! In the most recent episode, SVLG leaders sit down with Matthew Garrett, the director of innovation and partnerships office for Lawrence Livermore National Laboratory, to talk about some of the incredible innovations taking place at the Lab, such as high performance computing, lasers, fusion, manufacturing, and diagnostic tools.?

Though I’m certainly biased, I highly recommend that you check it out. Give it a listen here .?

And, please stay tuned for more episodes to be released over the coming weeks.?

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