California Governor Gavin Newsom has ordered stronger safeguards for AI companies seeking state contracts, intensifying a policy clash with the Trump administration over regulation.
The executive order requires AI vendors to demonstrate protections against misuse and risks to privacy, security, and civil rights before supplying systems to California agencies.
“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,”
Said California Governor Gavin Newsom.
The order directs state agencies to develop procurement standards covering issues such as model bias, illegal content generation, and threats to free speech, alongside recommendations for watermarking AI-generated media.
The move puts California at odds with the Trump administration’s push for national AI standards aimed at limiting state-level regulation and avoiding a fragmented regulatory landscape.
Analysts say California’s large purchasing power could force AI companies to adapt their products to meet stricter requirements if they want access to government contracts.
The dispute reflects a broader debate over whether federal or state authorities should lead AI regulation, as policymakers weigh innovation against risks tied to rapidly advancing technology.