On September 6, 2023, California Governor, Gavin Newson, issued an executive order to study the development, use, and risks of generative artificial intelligence (“Gen AI”). Similar to data privacy, California is the first state to analyze Gen AI under this lens. Under the executive order, state agencies will be required to perform risk assessments, create ethical guidelines for Gen AI usage and formulate new policies and regulations.

Goals of the executive order are to (i) deploy Gen AI ethically and responsibly; (ii) protect against and prepare for potential harms; and (iii) help California continue to lead Gen AI development. The executive order lays out a plan between now and 2025 for the state agencies to work on developing and executing their goals with respect to Gen AI. While this executive order will not have an immediate impact on private companies or providers of Gen AI technologies, it signals California’s interest in regulating the use and development of Gen AI.

Key Provisions from the Executive Order

  • Risk-Analysis Report: Direct state agencies and departments to perform a joint risk-analysis of potential threats to and vulnerabilities of California’s critical energy infrastructure by the use of Gen AI.
  • Procurement Blueprint: Calls for guidelines for the ethical development and usage of Gen AI technology.
  • Beneficial Uses of Gen AI Report: Direct state agencies and departments to develop a report examining the most significant and beneficial uses of Gen AI in the state. The report will also explain the potential harms and risks for communities.
  • Deployment and Analysis Framework: Develop guidelines for agencies and departments to analyze the impact that adopting Gen AI tools may have.

Next Steps

  • Conduct a Gen AI assessment within your organization to understand how both the risks and opportunities affect your operations.
  • Create guidelines for procurement to ensure that any Gen AI tools or services comply with regulatory standards.
  • Monitor regulatory updates.
  • Develop a Gen AI strategy that aligns with your organization’s goals.

Cynthia is an Intellectual Property Partner in Baker McKenzie's Palo Alto office. She advises clients across a wide range of industries including Technology, Media & Telecoms, Energy, Mining & Infrastructure, Healthcare & Life Sciences, and Industrials, Manufacturing & Transportation. Cynthia has deep experience in complex cross-border, IP, data-driven and digital transactions, creating bespoke agreements in novel technology fields.


Brittney Justice is an associate in the Privacy and Security practice group advising global organizations on privacy and data security compliance requirements. Brittney is recognized by the International Association of Privacy Professionals as a Certified Information Privacy Professional.


Manisha is an associate in the Data Privacy and Security practice group based in Chicago, advising global organizations on privacy and data security compliance requirements, as well as data security incident response.