Gov. Gavin Newsom (D-CA) signed a first-of-its-kind state law regulating AI, possibly setting the ground for a national standard.

The law in California, home of Silicon Valley, reflects both the state’s prominent position in the tech sector and Newsom’s ambitions. Senate Bill 53, the Transparency in Frontier Artificial Intelligence Act, would require major AI tech companies to publicly reveal their safety protocols. It also provides protection for whistleblowers reporting of AI company wrongdoing.

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“California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive. This legislation strikes that balance. AI is the new frontier in innovation, and California is not only here for it – but stands strong as a national leader by enacting the first-in-the-nation frontier AI safety legislation that builds public trust as this emerging technology rapidly evolves,” Newsom said in a statement.

The bill was offered by influential State Sen. Scott Weiner (D), who echoed the sentiment.

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“With a technology as transformative as AI, we have a responsibility to support that innovation while putting in place commonsense guardrails to understand and reduce risk,” he said. “With this law, California is stepping up, once again, as a global leader on both technology innovation and safety.”

California is home to 32 of the top 50 AI companies on Earth. Analysts and officials have put immense stock into the potential of AI, viewing it as a game-changing technology for the future.