California Governor Newsom Issues Executive Order to Regulate AI Companies
Newsom Orders AI Standards for California Business Contracts

California Governor Gavin Newsom Implements New AI Standards for State Contracts

California Governor Gavin Newsom has issued a significant executive order that establishes new standards for artificial intelligence companies seeking to do business with the state. In an official press release, Newsom emphasized that this order is designed to ensure companies adhere to strong standards and demonstrate responsible policies to prevent misuse of their technology, while safeguarding user safety and privacy.

Unlike the Trump administration, California remains committed to ensuring that AI solutions adopted and deployed by the largest state in the nation and the fourth largest economy in the world cannot be misused by bad actors seeking to exploit user data, subvert security, and violate civil rights, the statement declared.

Key Components of the Executive Order

As part of this executive order, Governor Newsom has directed the government operations agency to develop a comprehensive plan for new state contracting processes and best practices. This plan will vet companies based in part on how they attest and explain their policies and safeguards to protect the public from specific risks associated with their technology, including:

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  • Exploitation or distribution of illegal content
  • Models that display bias or lack technology to prevent such bias
  • Violations of civil rights and free speech

Additionally, the order mandates the California Department of Technology to create recommendations and best practices for watermarking AI-generated images or manipulated video, consistent with state law. This initiative is noted as the first of its kind nationwide, setting a precedent for other states.

Governor Newsom's Statement on Innovation and Safety

In an official statement, Governor Gavin Newsom highlighted California's dual role as a hub for innovation and a leader in responsible technology governance. California's always been the birthplace of innovation. But we also understand the flip side: in the wrong hands, innovation can be misused in ways that put people at risk, he said. California leads in AI, and we're going to use every tool we have to ensure companies protect people's rights, not exploit them or put them in harm's way. While others in Washington are designing policy and creating contracts in the shadow of misuse, we're focused on doing this the right way.

This executive order reflects California's proactive approach to balancing technological advancement with ethical considerations, aiming to set a benchmark for AI regulation that prioritizes public welfare and security in an increasingly digital world.

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