Newsom Signs New Laws Strengthening California’s Oversight of Artificial Intelligence

-Editorial 

Gov. Gavin Newsom signed two bills establishing new oversight and auditing requirements for artificial intelligence systems in California, expanding the state’s regulatory framework as the technology becomes more widely used in government, business, and other sectors.

Senate Bill 813 and Assembly Bill 1405 create a framework for independent organizations and auditors to evaluate AI systems and their compliance with state requirements.

SB 813, authored by state Sen. Jerry McNerney, D-Pleasanton, establishes a framework for independent verification organizations that can assess AI systems and models for compliance with California law.

AB 1405, authored by Assemblymember Rebecca Bauer-Kahan, D-Orinda, establishes a state registry for AI auditors and sets standards related to their independence, transparency and integrity.

The Newsom administration said the measures are intended to increase independent scrutiny of AI technology as its capabilities and use continue to expand.

“AI has the potential to improve our lives, but without effective guardrails, it poses significant risks,” McNerney said in a statement. He said independent third-party evaluations could help identify potential safety concerns and provide additional oversight.

Bauer-Kahan said independent auditors could play a role in evaluating claims made by AI developers and identifying potential risks involving communities and critical infrastructure.

“Californians deserve to know that the AI systems and models shaping their lives are safe and secure,” Bauer-Kahan said. “We cannot expect industry to simply grade its own homework.”

The legislation builds on several AI-related measures California has adopted in recent years.

In 2023, Newsom issued an executive order directing state agencies to examine how generative AI could be used by government while also identifying potential risks involving privacy, security, workers and the public.

California adopted additional AI legislation in 2024 addressing areas including deepfakes, watermarking, and protections involving children and workers.

In 2025, Newsom signed SB 53, the Transparency in Frontier Artificial Intelligence Act, which established disclosure requirements for developers of certain advanced AI models. The law requires covered developers to publicly disclose safety frameworks and report certain critical safety incidents to the state. It also includes protections for whistleblowers who report potential risks.

California has also adopted regulations and programs addressing AI companion chatbots, automated decision-making technology, and the use of AI in cybersecurity.

Earlier this year, Newsom issued an executive order addressing privacy and civil liberties protections involving the state’s procurement of AI technology. His administration also established a Tech Fraud Task Force focused on fraud involving artificial intelligence.

In August, the administration announced an AI Cyber Defense Program within the California Cybersecurity Integration Center. The program is intended to use AI technology to identify vulnerabilities, strengthen networks, and assist with responses to cybersecurity incidents.

Newsom said California intends to encourage technological development while establishing safeguards for its use.

“Artificial intelligence holds extraordinary promise, but it must be developed and deployed with meaningful safeguards to protect the public,” Newsom said.

The governor also called for federal regulations governing artificial intelligence, arguing that the technology’s reach extends beyond individual states.

The new laws come as policymakers nationwide continue to debate how governments should regulate rapidly developing AI technology while balancing potential economic and technological benefits with concerns over privacy, cybersecurity, misinformation, safety and accountability.