California Governor Gavin Newsom issued a new executive order aimed at tightening California’s procurement rules for artificial intelligence (AI) vendors and “raising the bar” for companies that want to sell AI tools to the state. The administration says the goal is to ensure contractors meet strong standards and can demonstrate responsible policies that prevent misuse, while protecting users’ safety and privacy. The announcement also frames California’s approach as a contrast to recent federal contracting “missteps,” emphasizing that AI adopted by the state should not enable bad actors to exploit data, undermine security, or violate civil rights.
Practically, the order directs the Government Operations Agency to develop a plan for updated contracting processes and best practices that vet companies based in part on how they attest to and explain safeguards addressing key risks, including exploitation or distribution of illegal content, biased model behavior or lack of bias prevention technology, and violations of civil rights and free speech in AI tools. It also allows the state to separate its procurement authorization process for AI tools from the federal government (when needed). In addition, the governor directs the California Department of Technology to develop recommendations and best practices for watermarking AI-generated images or manipulated video consistent with state law.
The order is not only about restrictions—it also commits California to expanding generative AI use to improve public services, including a new AI-directed tool intended to help Californians navigate programs and benefits by life events, like starting a business or finding a job. Alongside that service-delivery push, the state plans a statewide engagement effort through the Engaged California program to gather input on how AI may impact the workforce, signaling that California wants both stronger guardrails and a clearer public mandate as AI adoption accelerates. To see the full executive order click here.