California sets its own AI rules for state contractors, pushing back against federal policy

California has taken a significant step in AI regulation by mandating that companies with state contracts implement safeguards against the misuse of artificial intelligence. Governor Gavin Newsom's executive order requires these companies to prevent their AI systems from generating illegal content, reinforcing harmful biases, or violating civil rights. Additionally, state agencies will watermark AI-generated media to combat misinformation, and California will conduct its own reviews of federal supply chain risk designations, allowing continued collaboration with certain vendors like Anthropic.