Governor Gavin Newsom signed Executive Order N-5-26, directing California state agencies to adopt new standards for the procurement and use of AI systems in government.

The order requires agencies to evaluate AI tools based on risk, transparency, and accountability before purchase or deployment. It applies to all state agencies procuring AI technologies. It directs the California Department of Technology, the California Government Operations Agency, the California Department of General Services, and the California Department of Finance to develop guidance on assessing vendors and systems. Agencies must prioritize systems with oversight mechanisms, allow for human review, and assess potential risks, including those related to privacy, civil rights, public safety, and vendor transparency.

The guidance will include requirements for documentation, testing, and ongoing monitoring of AI tools.

The order establishes a timeline for implementation, with state entities required to begin aligning procurement practices with the new standards as guidance is issued. It also calls for coordination across agencies to ensure consistent application of the requirements.

The order is now in effect and directs agencies to begin implementation activities immediately, with additional technical guidance to be issued by state departments.