California Governor Signs Executive Order to Prepare the State For AI

State offices will examine pros and cons of generative AI, and engineers will be called to help.

On September 6, California Governor Gavin Newsom signed an executive order that will require state offices to study the advantages and risks of generative AI. The report that the state produces is set to economically impact engineers in companies in the state and far beyond.

California is perhaps the most well-positioned state in the country to realize the benefits of AI. According to the executive order, firms in San Francisco and San Jose produce a quarter of all AI patents, conference papers and companies globally. California leads the world in generative AI innovation and research. It is home to 35 of the world’s top 50 AI companies, including Nvidia and Meta. In addition, California’s economy is diverse and healthy, with many prominent industries that already rely on AI.

AI helps California utility companies optimize battery energy storage. California growers use AI-powered predictive modeling to enhance the health and output of key crops like wine grapes. The California Department of Forestry and Fire Protection (Cal Fire) uses an AI tool developed by ALERTCalifornia, a public safety program based at the University of California, San Diego, to improve firefighting and response times.

If the state’s report realizes significant pros, this could mean more contracts for companies working with AI. It could also mean more jobs for engineers. One of the areas that could see substantial growth is the companies that serve the energy sector. The order calls upon the state to determine potential threats to and vulnerabilities of the state’s critical energy infrastructure by the use of generative AI.

AI has the potential to help California’s budgetary goals, which include support for remote work, mitigation of climate change and advancement toward clean energy targets. The 2023-2024 revision to the California budget proposes spending $306.5 billion in total funds. Some of the spending would come from California’s construction of infrastructure to conduct pilots of generative AI projects. Even the act of producing the report will lead to more work for engineers. State agencies have been asked to consult industry experts to create the report.

Engineering students are set to benefit from the report as well. The report is likely to indicate a greater need for graduates working in AI. Engineering students will also get more exposure to AI because the executive order calls for the College of Computing, Data Science and Society (CDSS) at the University of California, Berkeley and the Institute for Human-Centered Artificial Intelligence (HAI) at Stanford University to partner with two state offices to develop and host an AI summit in 2024.

The boldness and breadth of the order indicates California means to influence other state governments’ purchases of AI tools. The language of the order also shows California is working in sync with the White House. The state is relying on guidance from that office’s Blueprint for an AI Bill of Rights as well as the National Institute for Science & Technology’s AI Risk Management Framework.

In an interview with Politico correspondents, Jason Elliott, Gov. Newsom’s deputy chief of staff, stated California was working closely with President Biden’s team.

“To the extent that they want to push for legislation, we’re obviously going to be supportive of where Joe Biden is headed with this,” said Elliott.