California to tap generative AI tools to increase services access, reduce traffic jams

California could soon deploy generative artificial intelligence tools to help reduce traffic jams, make roads safer and provide tax guidance.

California could soon deploy generative artificial intelligence tools to help reduce traffic jams, make roads safer and provide tax guidance, among other things, under new agreements announced Thursday as part of Gov. Gavin Newsom’s efforts to harness the power of new technologies for public services.

The state is partnering with five companies to create generative AI tools using technologies developed by tech giants such as Microsoft-backed OpenAI and Google- and Amazon-backed Anthropic that would ultimately help the state provide better services to the public, administration officials said.

“It is a very good sign that a lot of these companies are putting their focus on using GenAI for governmental service delivery," said Amy Tong, secretary of government operations for California.

The companies will now start a six-month internal trial where the tools are tested and evaluated by state workers. The companies will be paid $1 for their proposals. The state, which faces a significant budget deficit, can then reassess whether any tools could be fully implemented under new contracts. All the tools are considered low risk, meaning they don’t interact with confidential data or personal information, an administration spokesperson said.

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Newsom, a Democrat, touts California as a global hub for AI technology, noting 35 of the world's top 50 AI companies are located in the state. He signed an executive order last year requiring the state to start exploring responsible ways to incorporate generative AI by this summer, with a goal of positioning California as an AI leader. In January, the state started asking technology companies to come up with generative AI tools for public services. Last month, California was among one of the first states to roll out guidelines on when and how state agencies could buy such tools.

Generative AI, a branch of AI that can create new content such as text, audio and photos, has significant potential to help government agencies become more efficient but there's also an urgent need for safeguards and oversight to limit risks, state officials and experts said. In New York City, an AI-powered chatbot created by the city to help small businesses was found to dole out false guidance and advise companies to violate the law. The rapidly growing technology has also raised concerns about job loss, misinformation, privacy and automation bias.