California Governor Gavin Newsom has issued an executive order calling on state agencies to conduct comprehensive risk assessment reports to determine how the use of AI could impact their work, the state’s economy, and energy usage. This order also emphasizes the need to establish guidelines for the ethical development and use of AI tools that the state purchases. By doing so, California aims to position itself as a pioneering state in terms of setting the standard for how governments utilize AI technology.

Governor Newsom believes that it is crucial to strike a balance between the potential benefits and risks associated with AI. In his order, he states, ‘We recognize both the potential benefits and risks these tools enable. We’re neither frozen by the fears nor hypnotized by the upside.’ This demonstrates a measured approach towards leveraging AI’s advantages while mitigating potential negative consequences.

Why does it matter?

Beyond its implications for potential future state-level regulations, this analysis possesses the capacity to wield significant influence over federal-level regulations as well. Additionally, this analysis will aid California in comprehending the effects of AI on its residents, enabling the state to formulate effective responses to the emerging concerns surrounding this technology, particularly those pertaining to employment issues and ethics, among others.