California has enacted the nation’s first law regulating frontier artificial intelligence, known as the Transparency in Frontier Artificial Intelligence Act (TFAIA), which mandates large AI developers to publish safety frameworks and report critical safety incidents. The law aims to balance innovation with necessary safeguards to ensure public safety and accountability in AI development.
At the recent Pharmaceutical Compliance Congress West in San Diego, Valerie Webb and David Morris discussed how AI enhances compliance efficiency and governance. Webb shared her experience using AI to streamline third-party risk management, significantly reducing manual tasks and improving vendor oversight.
As financial institutions face increasing regulatory demands, artificial intelligence (AI) is becoming essential for enhancing efficiency in ESG and sustainability reporting. However, the integration of AI also raises ethical concerns and governance challenges that must be addressed to ensure responsible deployment in sustainable finance.
On September 29, 2025, California Governor Gavin Newsom signed Senate Bill 53, the Transparency in Frontier Artificial Intelligence Act, which requires large AI developers to publicly disclose safety frameworks and transparency reports about their models. This legislation aims to enhance accountability and safety in AI development while establishing whistleblower protections for employees in the field.