Big Tech got regulated, but just barely: 2025 in review

California showed it was serious about regulating Big Tech in 2025 — and Big Tech showed it was serious about coming to the statehouse and fighting back.

The upshot was a barrage of laws designed to curb tech harms but often in watered down form.

Take San Francisco Democratic Sen. Scott Weiner’s legislation to keep artificial intelligence systems from enabling catastrophes like biological weapons attacks. The original version would have mandated safeguards over AI systems and imposed possible liability on their developers.Gov. Gavin Newsom vetoed it amid concerns that it would stifle innovation in the state’s booming AI industry. This year’s version, signed into law, merely requires big AI companies to publish safety frameworks and creates a pathway for reporting safety incidents.

Similar dilutions occurred over other tech proposals. Of various bills to regulate data centers, those mandating disclosure of water and power use failed while one merely letting regulators look into those uses passed. On AI chatbots talking to kids, a bill outright banning any harmful chats failed while one just requiring protocols for suicidal users became law. A similar process winnowed six bills to regulate algorithmic pricing down to one signed by the governor, forbidding tech platforms from requiring their business customers to use their pricing recommendations.

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That came after another year of aggressive lobbying by tech companies, sometimes behind the scenes.

Still, advocates for more regulation won some outright victories, including a new browser setting to forbid websites from transferring personal data. Experts say this “opt out” will end up helping consumers across the U.S.

Meanwhile, California’s executive branch struggled with the process of guarding against online hackers, losing its top cybersecurity official amid discord in the office that position oversees. Law enforcement agencies across the state also struggled to correctly handle the digital data they collected, with many local police departments illegally sharing information on vehicle movements, gleaned from automated license plate readers, with federal agencies like Border Patrol and Immigration and Customs Enforcement.

2026 outlook

Next year will see no end to the tension between protecting Californians from artificial intelligence and the impulse to protect the flow of money into the industry. An ambitious bill requiring disclosure of AI use in consequential decisions, such as in housing and education, will return. Data centers will stir controversy as AI spikes their power use, potentially opening the door to nuclear power. Lastly, the Trump administration and Republicans in Congress have drawn up proposals — thus far not acted upon — to preempt state laws regulating AI. If enacted, such plans would hit California hardest.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.