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State officials report near‑completion of Gen AI pilot deliverables; workforce study remains
Summary
California Government Operations Agency told Budget Subcommittee No. 5 that state agencies have completed most deliverables from Governor Newsom's executive order on generative AI, with one outstanding workforce study; departments are piloting Gen AI projects across tax, transportation, public health and housing agencies.
A Government Operations Agency staff member told the Assembly Budget Subcommittee No. 5 on Thursday that state agencies have completed nearly all deliverables required by Governor Gavin Newsom's executive order on generative artificial intelligence, with one outstanding workforce-related deliverable in final review.
The staff member said executive order N-12-23, issued in September 2023, directed an interagency effort to study generative AI (Gen AI) risks and to create a deliberate process for evaluating Gen AI deployment across state government. "We have met nearly all the deliverables that have been outlined in the governor's executive order," the staff member said.
Why it matters: The executive order created new procedures for procurement, evaluation and oversight of Gen AI projects across multiple state agencies. The subcommittee heard that those procedures will shape how state departments develop, procure and deploy AI tools used in frontline services.
Key points reported to the subcommittee: - GovOps said it has published multiple deliverables, including a benefits-and-risks report (November 2023), a Gen AI procurement and training toolkit (March 2024), guidelines for evaluating impacts on vulnerable and marginal communities, and a project delivery life cycle summary for Gen AI procurement. - Two rounds of proof-of-concept (POC) projects have been run. Round 1 projects named in the hearing included a call-center productivity project at the Department of Tax and Fee Administration, two Caltrans projects (one to enhance vulnerable roadway user safety and one to interpret diverse data for traffic mobility insights), a Department of Public Health project on health facility inspections, and a Health and Human Services Agency project on language access. Round 2 POCs include work at the Department of Finance (bill analysis), Labor and Workforce Development/EDD (data accuracy and forecasting), and HCD/BCSH (housing plan tracking). - Most POCs are reported to be on pace; GovOps said one project was running behind schedule. - GovOps described substantial stakeholder engagement: regular meetings with legislative staff, academic partners (including UC Berkeley and Stanford), federal partners, and labor partners.
Legislative Analyst's Office and others flagged oversight needs. Brian Metzger of the LAO said his office is monitoring the POCs and urged the legislature to understand how the new project delivery life cycle will affect the legislature's role in approving project funding. "It will be important that the legislature knows how this new process works as well as understands its role in providing oversight through that process and through the annual budget process," Metzger said.
Labor concerns and public comment: A representative from SEIU Local 1000 said the union is "still assessing the impacts on the workers we represent" and asked for further dialogue ahead of the 2026 master agreement negotiations, citing concerns that some Gen AI projects could increase workloads.
What was not decided: The subcommittee received the update as an informational item; there was no committee vote or formal funding decision reported during the hearing.
Context and next steps: GovOps said the remaining workforce study will be released soon. Subcommittee members repeatedly stressed the need to translate technical materials into plain language for public understanding, and LAO staff said it will continue to track POCs as they move into implementation.
