The California Governor’s Office of Business and Economic Development (GO-Biz) has released a landmark report on the development and regulation of frontier artificial intelligence (AI), marking the state’s first comprehensive effort to shape policy around rapidly advancing AI technologies.
Titled “The California Report on Frontier AI Policy,” the document outlines opportunities, risks, and concrete policy options for California’s approach to frontier AI—defined as the most advanced general-purpose AI systems, including those with capabilities exceeding current benchmarks. The report, commissioned by Executive Order N-12-23 signed by Governor Gavin Newsom in September 2023, aims to position California as a leader in both AI innovation and governance.
“Frontier AI presents unique opportunities and risks that demand proactive public policy,” the report states. “California has an important role to play in ensuring the safe and beneficial development of these systems.”
The report identifies significant potential benefits from frontier AI in areas such as scientific discovery, climate forecasting, and education. However, it also details emerging risks, including model autonomy, cybersecurity threats, and risks to democratic processes. As these systems become more capable, the report warns, they may present safety challenges that exceed the scope of existing governance structures.
To address these issues, the report presents a set of policy options tailored to California’s regulatory environment. These include mandatory safety testing for powerful AI models, reporting requirements for compute usage, and increased support for open research and safety institutions. The report also discusses establishing a registry of large-scale AI training runs and exploring state-level standards for responsible deployment.
The California Department of Technology and the Office of Data and Innovation, which supported the report’s development, are expected to continue stakeholder engagement and analysis based on the findings. The report acknowledges alignment with parallel federal and international efforts but emphasizes California’s unique position as home to many of the world’s leading AI developers.
Crucially, the report also lays the foundation for future legislative and administrative action. It calls for careful balance: fostering innovation while managing risk and protecting public interests.
The state’s next steps include continued public-private collaboration and coordination with academic experts, civil society, and federal agencies. The report’s release follows months of consultation with researchers, industry leaders, and policymakers.
With this report, California becomes the first U.S. state to publish a dedicated policy document on frontier AI. The move reflects growing concerns over the unchecked development of increasingly powerful AI systems and signals that state-level governance will play a role alongside federal efforts.
The full report is now available on the GO-Biz website, where residents and stakeholders are invited to review and provide feedback.
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