UPDATE — JULY 2025: California’s GenAI guidelines, released in alignment with Governor Newsom’s Executive Order N-12-23, remain in effect. They are currently guiding state agencies on responsible generative AI procurement and use. Refinements based on stakeholder feedback and pilot programs are ongoing through 2025.
ORIGINAL NEWS STORY:
California Releases GenAI Guidelines to Govern Procurement and Deployment
California released guidelines to align with Governor Newsom’s Executive Order N-12-23. Officials dubbed these policies 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
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, the guidelines outline a comprehensive training roadmap across various organizational functions and roles. The state provides initial training for procurement officials and ongoing training opportunities through an AI community of practice. Risk assessment and management are key components. State entity CIOs are tasked with evaluating risks for Generative AI usage based on the NIST AI Risk Management Framework.
The procurement process is governed by strict guidelines. That includes mandatory Generative AI disclosure language in solicitations, written solicitations, and mandatory CIO risk evaluation. Bidders must complete a Generative AI disclosure fact sheet. Agencies must report all contracts involving Generative AI, with dedicated Generative AI experts overseeing contract management.
Conclusion
These guidelines provide a structured framework for state entities to explore Generative AI tools. It begins with a risk assessment and soft launch period preceding July 2024. The guidelines offer detailed resources, including toolkits, process flows, and contract language 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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