Governor Signs Sen. Dodd’s Generative AI Accountability Act

SACRAMENTO – Gov. Gavin Newsom on Sunday signed legislation from Sen. Bill Dodd, D-Napa, that will build upon recent directives from President Joe Biden and Gov. Gavin Newsom addressing the unprecedented growth of generative artificial intelligence technology by encouraging continued innovation while ensuring the rights and opportunities of all Californians are protected.

“Today we take a big step toward identifying potential problems with generative AI and developing appropriate guidelines to protect our state and the public as we take advantage of this transformative technology,” Sen. Dodd said. “Because we know AI has tremendous potential to improve our lives and the functioning of government. But we also know it presents risks, specifically the threat to consumer privacy, transparency and fairness. This new law will help us address many of these concerns.”

The 2023 White House Blueprint for an AI Bill of Rights, in addition to recent executive guidance from Gov. Newsom, establish a framework for addressing concerns including AI-driven algorithms that discriminate against people based on income levels or race, and the effects of the technology on our workforce. Additionally, the president and governor have underscored threats posed by AI to data and consumer privacy, and the potential for misusing the technology to deceive and defraud.

Sen. Dodd’s California Generative AI Accountability Act, also known as Senate Bill 896, will guide the decision-making of state agencies, departments and subdivisions in the review, adoption, management, governance and regulations of AI technologies. One provision in the bill would require state agencies to notify users when they are interacting with AI. Further, the act encourages the state to invest in AI education and build AI competency in the state’s workforce. It also requires state agencies to consider opportunities in which generative AI can improve the efficiency, effectiveness, accessibility and equity of government operations.

The bill was approved with unanimous Assembly and Senate support before being signed by the governor.

“SB 896 codifies several important aspects of this EO, including direction to CalOES to perform risk analyses on potential threats posed by the use of GenAI to California's critical infrastructure,” wrote Governor Newsom in a signing statement on the bill. “Under this direction, CalOES has been

working with frontier model companies to analyze energy infrastructure risks and convened power sector providers to share threats and security strategies. Building on this work, and in signing this bill, I am further directing CalOES to undertake the same risk assessment with water infrastructure providers in the coming year, and the communications sector shortly thereafter.”

“In this era of disinformation, it is critical that guardrails be in place for the use of generative AI,” said Brian Hofer, executive director of the nonprofit Secure Justice, a bill supporter. “By addressing procurement, use, and training, Sen. Dodd’s SB 896 will help California mitigate risk from using AI, while allowing for careful exploration and appropriate uses of this fast emerging field.”

SB 896 is a follow-up to Sen. Dodd’s Senate Concurrent Resolution 17, adopted last year, which sets forth many of the ideas and was the first AI-drafted state resolution in history.

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Senator Bill Dodd represents the 3rd Senate District, which includes all or portions of Napa, Yolo, Sonoma, Solano, Sacramento and Contra Costa counties. More information on Senator Bill Dodd can be found at www.senate.ca.gov/dodd.