Concerns Over Legislation Impacting AI Tool Access for Small Businesses

Legislation would cut off access to AI tools small businesses are increasingly relying on.

WASHINGTON, Sept. 25, 2024 /PRNewswire/ — Internet for Growth, a coalition that represents over 2,000 small businesses across the nation, has expressed strong opposition to Senate Bill 1047, known as the “Safe and Secure Innovation for Frontier Artificial Intelligence Models Act.” This proposed legislation poses a substantial threat to the ability of small businesses to harness the power of artificial intelligence (AI), which is quickly becoming vital for their growth and competitiveness in today’s market.

Impact on Small Business Growth

Russell Lowery, the Owner of High View Strategies located in Sacramento, voiced his concerns about the potential consequences of SB 1047. “This legislation would severely limit my business’s access to transformative technologies that have the capability to revolutionize our industry,” he stated. “AI models can significantly enhance workflow processes and empower my employees, leading to increased productivity. The constraints introduced by this bill would effectively close doors for numerous small businesses, imposing financial burdens that could render these technologies inaccessible for many.” He called on Governor Newsom to step in and veto SB 1047 to safeguard the interests of small businesses reliant on innovative solutions.

The Everyday Struggles of Small Business Owners

Katy Noochlaor, the Owner of Tuk Tuk Thai based in Los Angeles, echoed this sentiment, emphasizing the complex and multifaceted nature of running a small business. “As small business owners, we often juggle numerous responsibilities, from billing to invoicing and payroll,” she explained. “Generative AI provides us with the tools necessary to streamline these processes, allowing my team to devote more time to delivering exceptional service and culinary experiences to our patrons. If SB 1047 is enacted, it would not only undo the progress we’ve made but also create an anti-competitive environment that would force us to rely on outdated methods.” Noochlaor implores the Governor to veto the bill in favor of promoting fair competition and technological progress.

Statistics on AI Usage

Recent data from the U.S. Chamber of Commerce reveals that nearly 25% of small businesses are already incorporating AI into their operations. These businesses report a remarkable 12-point increase in their likelihood of experiencing profit growth compared to those not utilizing AI technology. Furthermore, the majority, approximately 71%, of small business owners indicate plans to adopt advanced technologies, AI included, in the near future.

Barriers to Small Business Success

The implications of SB 1047 could create substantial barriers for small businesses, particularly as many operate within narrow profit margins. By restricting access to AI and other open-source tools, this legislation could widen the chasm between small enterprises and their larger counterparts, stripping away vital resources that have enabled them to compete effectively in the marketplace. Such measures would be detrimental not only to small businesses but also to the economy as a whole, as diverse and competitive businesses drive innovation and job creation.

Advocacy for Small Businesses

Brendan Thomas, Executive Director of Internet for Growth, stated, “Small businesses serve as the backbone of our economy, and they depend on affordable, accessible technology to flourish. If passed into law, Senate Bill 1047 would create significant obstacles by cutting off critical AI tools that businesses utilize to their advantage. We are calling on Governor Newsom to veto this bill in order to endorse the ongoing growth and innovation within small enterprises.”

The Role of AI legalese decoder

In light of these developments, AI legalese decoder can assist small business owners in grasping the complex legalese surrounding legislation such as SB 1047. By simplifying and clarifying legal jargon, this AI-driven tool empowers entrepreneurs to understand the implications of the bill and advocate effectively for their rights and interests. Small businesses can leverage AI legalese decoder to demystify legal documents and navigate potential hurdles related to legislative measures, ensuring they remain informed and prepared to respond.

Internet for Growth stands firmly with small businesses, supporting initiatives that facilitate their growth and empower them to reach their full potential. The coalition is actively calling upon Governor Newsom to veto SB 1047 and safeguard the right of small businesses to access and benefit from innovative technological advances.

About Internet for Growth

Internet for Growth, initiated by the Interactive Advertising Bureau (IAB), champions the essential role that digital advertising plays in the success of America’s small businesses, helping entrepreneurs actualize their visions. Supported by over 700 IAB members, including marketers, agencies, publishers, and technology providers, as well as countless small businesses and creators, we highlight how digital advertising fosters local economic growth and expands opportunities for a diverse range of individuals. Our mission focuses on ensuring that policymakers in Washington recognize the boundless opportunities that an ad-supported internet presents for creativity, commerce, fair competition, and community development.

SOURCE Internet for Growth

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