California says it’s ready to buy generative AI tools

After six months of testing generative AI tools, California is ready to start buying the technology, Gov. Gavin Newsom announced.

By Sophia Fox-Sowell

December 16, 2024

Listen to this article

0:00

This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment.

California Gov. Gavin Newsom stands with actor Danny Trejo, left, and SAG-AFTRA National Executive Director Duncan Crabtree-Ireland at a press conference at Raleigh Studios unveiling a vast expansion of California’s Film and Television Credit Program on October 27, 2024 in Los Angeles, California. (Mario Tama / Getty Images)

After a six-month trial of testing generative artificial intelligence tools in a closed environment, California Gov. Gavin Newsom on Friday announced the state will move to the procurement stage of incorporating the emerging technology into its operations.

Newsom announced the state has opened a formal procurement process so companies can pitch generative AI products that help solve statewide issues like housing, unemployment and budgeting. Newsom’s office also announced the launch of a new website designed to showcase the generative AI projects happening across California state government.

“California must continue to innovate when transformative technology like GenAI can be used right now to help address challenges we face across state government,” Newsom said in a press release. “We must continue to be responsible, proactive, and bold in our work – and that means exploring technology that can help move us forward to make Californians’ lives even better.”

The move builds on an executive order Newsom signed last year outlining the steps California must take to deploy generative AI ethically and responsibly, including testing, risk assessments and employee training.

Last week’s announcement also outlined challenges three California state departments are facing and how generative AI companies can best address them. The Department of Housing and Community Development wants to track housing initiatives across the state more efficiently, the Labor and Workforce Development Agency wants to more accurately forecasts employment trends and the Department of Finance is looking for a product that helps it analyze legislative bills that relate to the state budget.

“Our hard work is paying off after months of thorough research and engaging with the innovator community to determine whether GenAI is the answer to some of the challenges the state is currently facing,” Amy Tong, secretary of government operations, said in the release.

Earlier this month, California IT officials from health, labor and transportation departments gathered at a technology event in Sacramento, where they urged agencies to work more collaboratively to prepare the state for AI, and to strengthen data infrastructure and bridge the state’s data silos.