In a pair of letters addressed to the California State Senate, Governor Gavin Newsom returned two bills without his signature, highlighting his administration’s ongoing efforts to responsibly deploy artificial intelligence (AI) and automated decision systems (ADS) while maintaining budgetary discipline.

The first bill, Senate Bill 892, proposed a new procurement standard for automated decision systems to be enforced starting in 2027. This measure would have required every state contract involving such systems to comply with newly established regulations. While the Governor acknowledged the bill’s intent, he pointed out that it conflicts with existing efforts spearheaded by his administration.

“My administration shares the author’s commitment to ensuring the safe deployment of artificial intelligence and automated decision systems,” Newsom wrote, referencing Assembly Bill 302 (Ward, 2023), which mandates a comprehensive inventory of high-risk automated systems used by state agencies. He also cited Executive Order 12-23, issued in September 2023, which directs state agencies to implement ethical and responsible AI deployment across government sectors.

However, the Governor expressed concerns that the new regulations outlined in SB 892 would disrupt current modernization efforts. “Unfortunately, several aspects of this bill disrupt that ongoing work, including existing information technology modernization efforts, which would lead to implementation delays and higher expenses for critical projects,” Newsom explained. He also noted that the bill would create additional costs that had not been factored into the state’s 2024 budget, stating, “It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget.”

Similarly, Senate Bill 1220, which aimed to prohibit state and local agencies from using AI or ADS in public benefit-related call centers if such systems replaced core job functions of workers, was vetoed. The bill also sought to extend an existing requirement for call center services to be performed by California-based workers.

While Governor Newsom emphasized the potential benefits of AI in enhancing workforce efficiency, he stressed the need for careful evaluation before implementing prohibitive measures. “Technology can and should enhance the experience of the workforce—by making work more efficient and pushing us to attain new heights of achievement and innovation,” he wrote. “At the same time, we must consider appropriate guardrails and control the risks posed by this technology.”

Newsom referenced his 2023 Executive Order (EO) N-12-23, which is aimed at guiding the responsible deployment of AI within the state. “Through the implementation of this EO, the state will soon issue criteria to evaluate the impact of AI on the state workforce, as well as guidelines on how state agencies and departments can support their employees,” he stated.

The Governor also pointed out that the administration is already conducting an inventory of high-risk ADS systems that affect human decision-making, which will inform future policies. “Given that my Administration is actively undergoing efforts to identify, inventory, and analyze these systems, in addition to the efforts underway in my EO, imposing a prohibition on AI or ADS at this stage would be premature,” Newsom concluded.