04-08-2026
Employer Insight: Governor Gavin Newsom issued an executive order requiring certain safety and privacy guardrails from AI companies contracting with the state of California. It is being touted as the first-of-its-kind from a state. Below are some of the order’s provisions.
- Companies that want government contracts must share their safety and privacy policies. California will evaluate how those companies prevent the exploitation of individuals, particularly the spread of child abuse materials. It will also look at how AI tools are used to monitor individuals or block certain speech. AI contractors will have to explain how their models avoid bias.
- California will conduct independent supply chain risk assessments. If the company passes the assessment, the state will allow it to remain a contractor.
- State officials must begin watermarking AI-generated or manipulated videos that they create. Consumers will be able to differentiate between human-generated and AI-generated images produced by the state.
- State agencies must expand their use of vetted AI tools with the goal of improving public services.
- The state will work to identify the ways generative AI can “strengthen government transparency and accountability, improve performance, and make government services easily accessible for every Californian.”