California requires state contractors to disclose AI usage and safeguards
Gov. Gavin Newsom signed executive order N-5-26 on March 30, requiring companies that bid on California government contracts to disclose their artificial intelligence systems and explain how they prevent illegal content distribution, civil rights violations, and discriminatory bias.
The order focuses on AI procurement-what models the state buys or contracts with-before implementation. Government officials can now reject technologies that spread illegal material, including child sexual abuse material and non-consensual intimate imagery.
Contractors must also monitor AI errors and bias over time, even after state approval, to ensure sustained accuracy.
Public input on AI impacts
The state will use Engaged California, a digital platform launched in February 2025, to gather public feedback on how AI affects different sectors like the workforce. The platform began as a pilot program responding to the Eaton and Palisades wildfires and now serves as an online space for residents to discuss government services and policies.
The executive order also directs state departments to watermark AI-generated videos and images to reduce misinformation spread and make the public aware of synthetic content.
Broader AI initiatives
California is developing an AI-powered website or application pilot to help residents access government services organized by life event-disaster relief, starting a business, finding a job.
Newsom said in a statement: "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."
The state houses 33 of the top 50 private AI companies globally and leads in AI job opportunities and funding.
For government professionals navigating these new requirements, resources on AI for Government and an AI Learning Path for Policy Makers can help understand the governance frameworks shaping procurement decisions.
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