Newsom announces new AI agreements for government work

Governor Gavin Newsom is pushing for artificial intelligence to play a larger role in California’s state government operations. 

He announced new agreements Tuesday between California and several tech companies to use generative artificial intelligence in state government work. The legislature’s research division called the timeline of the projects “aggressive and premature.”

Generative AI refers to technology that learns from existing data to create new data. 

Newsom said at a press conference that the new generative AI projects — which the state has already been testing — will increase efficiency in the state’s work around traffic safety, congestion and customer service related to taxes. He said the move builds on an executive order he signed in 2023 requiring some state departments to study how they could use AI to work more efficiently.

He also compared it to Elon Musk’s work scaling back the federal government through the Department of Government Efficiency, saying California is doing that work better. 

“Building things is hard — starting from scratch, improving things, reforming things,” he said. That's what we're promoting: efficiency, engagement, better outcomes and results. That's real work.”

The state is contracting with several companies, including Accenture and Deloitte, and aims to launch a final version of the projects in July. 

California’s Legislative Analyst’s Office released a report just before Newsom’s announcement saying the governor’s AI timeline is hasty. 

“The state doesn't really have the full scope and cost of the entire project, which is something that we typically expect when the legislature is being asked to sign off on millions or tens of millions of dollars annually for a particular project,” said LAO Policy Analyst Brian Metzker.

The report calls for the legislature to require Newsom to share more about the testing of the technology. It also recommends lawmakers restrict the number of initial projects.