Seven months after Governor Gavin Newsom signed Executive Decree N-12-23 By directing further study of generative AI technologies, new guidelines will cement how state agencies and vendors should approach future procurement.
The guidelines released Thursday – titled GenAI Guidelines for Public Sector Procurement, Use, and Training – contain updated definitions of AI and Generative AI (GenAI), and mandates surrounding the accidental and intentional purchase and implementation of the tools across agencies and programs. The guidelines were developed by the Government Operations Agency (GovOps), California Department of Technology (CDT), Department of General Services (DGS), Office of Data and Innovation (ODI) and the Human resources department (CalHR).
The agency’s responsibilities for accidental AI procurement include appointing a member of the management team for ongoing monitoring and evaluation; mandatory training for the agency’s management and procurement team; and an annual review of training and policies to ensure acceptable use of tools.
The guidelines for intentional purchasing are more detailed and include identification of business needs, possible implications and a “comprehensive discovery process”; creating a culture of engagement and communication between state personnel and end users; risk and impact assessment; preparing quality data inputs and testing models; and the creation of a team responsible for the ongoing evaluation of the use of GenAI and its implications across all operations.
In addition, state entities will be required to complete a Generative Artificial Intelligence Risk Assessment (SIMM 5305-F) to determine the level of risk exposure associated with a planned GenAI deployment. The new rules also list requirements for suppliers regarding the identification and disclosure of “any GenAI technology” that is part of a purchase.
As of Thursday, the day the guidance was released, “all IT, non-IT, and telecommunications solicitations, regardless of acquisition type or method, must contain GenAI disclosure notification language requiring vendors to identify any technology GenAI. This must be fully implemented no later than April 30, 2024,” according to a CDT letter that accompanied the announcement.
In terms of training, three phases have been identified. The first phase includes executive-level leaders, legal, labor and privacy specialists. The second phase includes program staff and technical experts. The third phase includes general staff and end users. Procurement managers will have access to training resources related to AI procurement identification starting March 29, according to the release.
This story first appeared in Industry Insider — California, Government Technology sister publication of the magazine.
