California’s business leaders are stepping into the AI debate.
The California Chamber of Commerce has kicked off a statewide campaign urging lawmakers to avoid regulations that could undermine the state’s dominant role in artificial intelligence. With venture capital pouring into Bay Area startups at record speed, the group argues California risks losing its edge if rules go too far.
Key Takeaways
- Chamber warns overregulation could push AI firms to other states.
- California houses majority of world’s leading AI startups.
- AI firms secured $74.6B in funding in early 2025 alone.
- Campaign targets lawmakers as legislative session nears its close.
Campaign Aims to Keep California on Top
The California Chamber of Commerce (CalChamber) has launched a high-visibility campaign designed to remind state officials of what’s at stake in the fast-growing AI sector. Digital ads and public videos will run across California in the coming weeks as lawmakers prepare to wrap up their 2025 session.
The central message: California must not regulate itself out of the very industry it helped build.
The Stakes in Numbers
California is already home to 32 of the world’s 50 most prominent AI companies. The Bay Area in particular has become a global magnet for talent and capital. In the first six months of 2025 alone, AI ventures based in the state attracted $74.6 billion in venture capital — triple what they raised during the same period last year.
That investment surge highlights how vital California remains to the global AI economy — but also how easily it could lose ground if firms find it easier to operate elsewhere.
Chamber’s Warning to Lawmakers
CalChamber President and CEO Jennifer Barrera cautioned against what she called “only-in-California” regulations that create barriers other states or countries don’t impose. “We want California’s elected officials to work with us to ensure the story of AI’s future continues to be written here,” she said in the Chamber’s announcement.
The group says regulation should focus on clearly defined risks — such as safety, privacy, or misuse — without choking off innovation.
Why It Matters Beyond Tech
The debate isn’t just about Silicon Valley. AI breakthroughs are shaping industries from healthcare and transportation to agriculture and education. Business leaders warn that an exodus of AI companies could mean lost jobs, lower tax revenues, and fewer consumer benefits.
At the same time, policymakers face public pressure to put guardrails in place, especially on issues like bias and data security.
The Road Ahead
California’s lawmakers will weigh these competing pressures as they finish their 2025 legislative calendar. The Chamber’s campaign signals just how high the stakes are — for businesses, for workers, and for California’s standing on the world stage.
Conclusion
California sits at the center of the AI revolution, but that position isn’t guaranteed. The Chamber’s new push makes clear that lawmakers’ choices in the coming months could determine whether the state stays the global hub — or watches investment and innovation shift elsewhere.