On Monday, California tightened oversight of AI, with Gov. Gavin Newsom (D-Calif.) rolling out sweeping new rules aimed at curbing misuse and protecting civil liberties.

New AI Rules Target Misuse, Bias, Deepfakes

Newsom signed an executive order requiring companies seeking contracts with the state of California to implement safeguards against AI misuse, including the creation of illegal content, harmful bias and civil rights violations.

The order also directs state agencies to clearly label AI-generated images and videos with watermarks, a move designed to limit misinformation and the spread of deepfakes.

California Takes Independent Stance On Federal AI Risk Labels

This development follows the move by the Pentagon to designate Claude-parent Anthropic as a supply-chain risk, effectively barring contractors from using its technology in military-related work.

Anthropic is backed by Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.

Last week, the company secured a legal victory after U.S. District Judge Rita Lin issued a preliminary injunction preventing the Pentagon from limiting the use of its AI models.

The court said the government's classification of Anthropic as a "supply chain risk" was likely unlawful and may have been retaliatory, temporarily pausing the directive linked to the Donald Trump administration.

California, however, signaled it may not automatically follow that decision.

New Certification Framework For AI Vendors Coming Soon

Within 120 days, the state's Department of General Services and Department of Technology are expected to propose a certification framework requiring vendors to attest to responsible AI governance and public safety protections.

The move is part of a broader effort to formalize accountability standards for AI firms working with the state.

Newsom Draws Contrast With Trump On AI Policy

In a statement on X, Newsom highlighted California's focus on privacy and safety.

"I just signed an executive order to actively make sure AI companies working with the state protect privacy and civil liberties," he said.

"While Trump pressures companies to deploy AI for autonomous weapons and domestic surveillance, California is using our power … to raise the bar on privacy and security."

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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