California takes big step toward becoming an AI-powered state

California continues to invest in its tech prowess, as Governor Gavin Newsom announces new generative AI initiatives that sick the technology onto some of the state’s biggest man-power burdens.

Part of the leader’s executive order on AI, which directed state agencies to implement the new technology in the name of efficiency, three new agreements will see state investments in some of the industry’s most popular generative AI technologies, meant to reduce highway congestion, improve roadway safety, and enhance customer service in state call centers. 

“GenAI is here, and it’s growing in importance every day. We know that state government can be more efficient, and as the birthplace of tech it is only natural that California leads in this space,” said Newsom. “In the Golden State, we know that efficiency means more than cutting services to save a buck, but instead building and refining our state government to better serve all Californians.”

Specifically, the California Department of Transportation (Caltrans) will use Microsoft’s Azure Open AI to process and analyze traffic data in order to “reduce traffic congestion, enhance incident response, and improve transit reliability.” It will also harness Google’s Gemini AI under a contract with Deloitte Consulting to mitigate traffic incidents and recommend safety solutions. Meanwhile, support call center workers that are part of the California Department of Tax and Fee Administration (CDTFA) will now have access to Anthropic’s Claude, based on a previous pilot tasked with reducing customer call times.

California previously partnered with Nvidia to implement AI solutions and provide tech training and education to students and workers. In this week’s announcement, Newsom — countering the sentiment of federal leaders — reiterated that the new tech adoption wouldn’t replace state workers, but instead support employees in a new collaborative partnership, working alongside SEIU Local 1000, the public services union representing California state employees.

But California has also come under fire for its speedy adoption of AI, including the use of generative AI to write portions of the state Bar exam.

Following the success of this second phase, the state will turn toward implementing AI in housing, workforce planning, and bill analysis, according to the announcement.