Seven months following the signing of Executive Order N-12-23 by California Governor Gavin Newsom, guidelines have been released to align with its directives. Dubbed the GenAI Guidelines for Public Sector Procurement Uses and Training, these guidelines aim to provide comprehensive guidance on the procurement, utilization, and training related to deploying Generative AI within California state government. The guidelines emphasize the critical importance of responsible, ethical, transparent, and trustworthy implementation of Generative AI. They task state entities and their leadership with evaluating and integrating Generative AI into their operations to bolster their unique missions.
Key highlights of the guidelines include defining Generative AI as pretrained AI models capable of generating new synthetic content like images, text, and code by analyzing input data. They differentiate between incidental Generative AI purchases, where Generative AI is a subcomponent, and intentional Generative AI purchases, where it is explicitly procured. Examples of common Generative AI use cases, such as content generation, chatbots, data analysis, and more, are provided.
State entities are tasked with designating an executive lead, typically the Chief Information Officer (CIO), for continuous Generative AI monitoring and evaluation. Mandatory Generative AI training is required for executives, procurement teams, and the workforce, with an emphasis on understanding business needs, engaging employees, assessing risks, preparing data, testing models, and establishing ongoing evaluation processes for intentional Generative AI procurement.
Additionally, a comprehensive training roadmap across various organizational functions and roles is outlined, along with initial training for procurement officials and ongoing training opportunities through an AI community of practice. Risk assessment and management are key components, with state entity CIOs tasked with evaluating risks for all Generative AI usage based on the NIST AI Risk Management Framework.
The procurement process is governed by strict guidelines, including mandatory Generative AI disclosure language in solicitations, written solicitations, and mandatory CIO risk evaluation. Bidders must complete a Generative AI disclosure fact sheet, and contracts involving Generative AI must be reported, with dedicated Generative AI experts overseeing contract management.
These guidelines provide a structured framework for state entities to explore Generative AI tools, beginning with a risk assessment and soft launch period preceding July 2024. Detailed resources, including toolkits, process flows, and contract language, are provided to facilitate compliant Generative AI procurement and deployment. The State intends to refine this guidance based on research, stakeholder input, and implementation experience over the next two years.
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