California now requires AI safeguards for any company seeking state contracts

California Governor Gavin Newsom signed an executive order on Monday that requires firms seeking contracts with the state to provide safeguards against AI misuse, including the generation of illegal content, harmful bias and violations of civil rights.

To avoid misinformation, the order requires agencies to watermark images or videos that may be generated through AI as per the guidance issued by the state.

If the federal government labels a company as a supply chain risk, California will conduct its own assessment and may allow it to remain a contractor if it does not find it to be a risk.

This order comes after the Pentagon slapped a formal supply-chain risk designation on ​artificial intelligence labAnthropic, barring government contractors from using the firm's technology in their work for the US military.

However, that didn’t stop Sadiq Khan, the mayor of London, from inviting Anthropic to expand in London, criticizing the move as an attempt to pressure the firm over its safety policies.

Within 120 days, California's Department of GeneralServices and Department of Technology will submit recommendations for new AI‑related vendor certifications which would allow firms to attest to responsible AI governance andpublic‑safety protections.

The order underlines the state's efforts to strike an independent stance despite efforts by some Republican lawmakers for it to defer to federal authorities on law and regulation.

In February, California Attorney General Rob Bonta told Reuters in an interview his office is developing its in-house expertise through its "AI oversight, accountability and regulation program.

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