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P E E R T O P E E R M A G A Z I N E · W I N T E R 2 0 2 5 17 transparency and safety practices. This has been the trajectory of other adjacent laws on privacy, compliance, and governance, and SB 53 is set to follow suit, pioneering not only accountability for frontier AI but also setting the precedent for transparency in equal measure. Globally, SB 53 may influence governments seeking a pragmatic model for AI governance. While the EU's AI Act represents a broad, top-down regulatory framework, SB 53's more targeted focus on "frontier" systems and catastrophic risks may appeal to nations seeking a lighter, more adaptable approach. California has historically set global standards in environmental policy, digital privacy, and consumer safety. Now, it could catalyze a similar "California Effect" in AI governance, encouraging multinational corporations to adopt its practices worldwide simply because it is easier than maintaining fragmented standards. PRIVACY, TRANSPARENCY, AND THE BATTLE FOR PUBLIC TRUST Public trust is one of the most valuable currencies in the AI era, yet one of the easiest to lose. Misinformation, deepfakes, data misuse, and opaque model- training practices have left many people uneasy about AI's rapid advancement. SB 53 recognizes that trust cannot be commanded – it must be earned. By forcing companies to publish safety frameworks and acknowledge potential risks, SB 53 breaks through much of the secrecy that has characterized frontier-AI development. Californians – and global observers – will now be able to see how companies think about safety, what risks they consider most serious, and how they plan to address them. Even high- level transparency builds public confidence by showing that developers and regulators are paying attention to consequences. This has been an ongoing battle across privacy, security, and data governance, with frameworks and regulations popping up in quick succession across the globe. The more these types of accountability frameworks are implemented, the greater the chance of continued trust being developed – ultimately resulting in a bright future for innovation. A LANDMARK WITH CHALLENGES AHEAD SB 53 is ambitious, but no law is perfect. Its scope is limited to large developers, leaving room for smaller groups to create powerful

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