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California imposes new AI regulations on businesses in “first-of-its-kind” executive order signed by Newsom

California imposes new AI regulations on businesses in "first-of-its-kind" executive order signed by Newsom

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California will require artificial intelligence companies to implement safety and privacy guardrails under a new order from Gov. Gavin Newsom.

The executive order, which the governor is calling “first-of-its-kind,” was signed Monday.

“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,” Newsom said in a statement after signing the order.

Newsom said the order comes in response to moves by the Trump administration to limit state regulation of AI in favor of a single nationwide approach, following lobbying by big tech companies.

“While others in Washington are designing policy and creating contracts in the shadow of misuse, we’re focused on doing this the right way,” Newsom stated.

Under the order, companies seeking to do business with the state will need to certify their AI systems include safeguards against illegal content, harmful bias and potential civil rights violations.

The order also directs state agencies to expand their use of vetted AI tools, with the goal of improving public services.

“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,” Newsom stated.

Earlier this month, the White House unveiled a national framework outlining how it wants Congress to address AI concerns, favoring a “light-touch” approach to regulation.

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