The order also promises to expand California’s use of GenAI to help deliver improved state services, including new AI-driven tools to help Californians take advantage of available programs and benefits for life events such as starting a business or finding a job. The executive order can be viewed here.
California is the world’s fourth-largest economy, the birthplace of technology, a top pipeline for technology talent, and has demonstrated an ability to responsibly drive innovation and safeguards, with all of the nation’s largest and most valuable technology companies successfully helping pre-seed startups.
California technology leadership
The announcement follows the Trump administration’s recent attempts to require companies to deploy technology that violates users’ privacy and civil rights and puts personal safety at risk due to contractual mistakes. California, on the other hand, is taking a different approach.
Governor Newsom’s order directs the Office of Government Management to develop a new state contracting process and best practices plan that will scrutinize companies based in part on how they demonstrate and explain policies and safeguards related to their technology that protect the public from:
- Exploitation or distribution of illegal content
- Models that are biased or lack techniques to prevent bias
- Violation of civil rights and freedom of speech
The order also allows states to separate procurement authorization processes from the federal government, if necessary, and direct states to leverage AI to improve government service delivery, increase transparency, and strengthen accountability.
The Governor also directed the California Department of Technology to develop recommendations and best practices for watermarking AI-generated images or manipulated videos in compliance with state law. This is the first such attempt in the United States.
Read the full presidential order here.
How AI will impact your workforce
The opportunities created by AI raise questions about job security and the potential for technology to have a disruptive impact on California’s workforce. Californians deserve an opportunity to consider how our state’s policies will respond to this new technology and shape our future economy. Last year, Governor Newsom announced: Engaged California, the nation’s first digital democracy platforma new tool to help the state build communication and engagement with Californians. The tool was first launched as a pilot to better shape Angelenos’ recovery after the Los Angeles firestorm. The tool was then used to provide state officials with an opportunity to inform state government efficiency efforts.
Governor Newsom announced today that the state is launching the first statewide engagement effort with all Californians through Engaged California, providing powerful tools to guide the state’s response to AI and its impact on the workforce. This new first-of-its-kind digital democracy initiative is expected to be rolled out in the coming months.
This effort stands in contrast to the Trump administration and Congressional Republicans, who have proven unable to pass even the most basic protections when it comes to AI. This also joins Governor Newsom’s efforts to put California at the forefront of AI advancements more than any other state.
- Instructing the state to Integrate generative AI responsibly This includes directing the development of innovative new procurement mechanisms, an AI sandbox to pilot technology, new cybersecurity assessments, and new guidelines to ensure safe and ethical use.
- Promoting cutting-edge policies through commissioning Reports from the world’s leading AI scholars and experts Help drive responsible AI governance.
- Increase efficiency and demonstrate leadership, Executive Order Seeking Input from State Officials and Partnering with Executives and Technology Leaders Expanding the use of efficiency tools, including AI, within state government.
- Creating a Californian Life Better through GenAI, Reduce highway congestion, improve road safety, New efforts are underway, including improving wildfire detection.
- leverage industry partnerships with Nvidia, Google, Adobe, IBM, Microsoft Help prepare current and future generations to lead an AI-enabled workforce, including expanding access to AI training to more than 2 million students and faculty at public high schools and universities across California, including community colleges and California State University.
California’s innovation economy dominates
- California is home to 33 of the world’s top 50 privately held AI companies and ranks first with 25% of all AI patents, conference papers, and companies.
- The Bay Area received the majority of U.S. AI startup funding last year. From Q3 2024 to Q2 2025, the Bay Area attracted 51% of the nation’s AI startup funding to Carta’s platform. This is significantly higher than New York state as a whole (11%) and Boston (5.5%).
- California leads the U.S. in demand for AI talent. In 2024, 15.7% of all U.S. AI jobs were in California. According to the 2025 Stanford AI Index, the state ranks first, far ahead of Texas (8.8%) and New York (5.8%).
- In 2024, more than half Most of the world’s VC funding for AI and machine learning startups went to Bay Area companies.
- California is home to three of the four companies that have topped $3 trillion in valuations. These California-based companies, Google, Apple, and Nvidia, are all technology companies involved in AI and have created hundreds of thousands of jobs.
The birthplace of modern technology
California is working closely to foster technology leadership and create an environment where industry and talent thrive. This is why California is home to the most technology companies in the nation. California is a world leader in technology, balancing advances in AI with common-sense laws to protect our citizens, while embracing technology to make our lives easier and our government more efficient, effective, and transparent.
California currently has the following laws:
