California AI order requires firms seeking state contracts to have safeguards against abuse

March 30 (Reuters) – 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 towatermark images or videos that may be generated through AI asper the guidance issued by the state. * If the federal government labels a company as a supplychain risk, California will conduct its own assessment and mayallow it to remain a contractor if it does not find it to be arisk. * This order comes after the Pentagon slapped a formalsupply-chain risk designation on ​artificial intelligence labAnthropic, barring government contractors from using the firm’stechnology in their work for the U.S. military. * Within 120 days, California’s Department of GeneralServices and Department of Technology will submitrecommendations for new AI‑related vendor certifications whichwould allow firms to attest to responsible AI governance andpublic‑safety protections. * The order underlines the state’s efforts to strike anindependent stance despite efforts by some Republican lawmakersfor it to defer to federal authorities on law and regulation. * In February, California Attorney General Rob Bonta toldReuters in an interview his office is developing its in-houseexpertise through its “AI oversight, accountability andregulation program.”

(Reporting by Carlos Méndez in Mexico City; Editing by Edwina Gibbs)