How is California Regulating High-Risk Artificial Intelligence?

California has a history of being at the frontier Artificial Intelligence (AI) regulation. Governor of California Gavin Newsom signed the Transparency in Frontier Artificial Intelligence Act (S.B. 53) recently in September 2025. S.B. 53 aims to allow California to “work to advance AI with common sense laws to protect the public, embracing technology…to make government more efficient, effective, and transparent.”  

Bills such as A.B. 2408 and S.B. 856 have previously passed in California to regulate the California Department of Technology. The California Department of Technology (CDT) is a state agency whose mission is to “deliver clear, fast, dependable, and equitable public services,” which includes the prevention of biased technologies and safety regarding high risk programs.According to the EU Artificial Intelligence Act, AI systems are considered high-risk when the technology acts as its own product or as a safety net for a system with a high risk of failing. A.B. 2408 requires each state agency to create a Chief Information Officer to regulate technology usage. S.B. 856 requires the CA Technology Agency to oversee all Information Technology service contracts. 

Other states have made steps to regulate AI. Texas’ S.B. 1963, Georgia’s H.B. 147, and North Carolina’s S.B.747 all include specific conditions to monitor data and AI used by government agencies and to develop “evidence-based” AI programs. In recent years, lawmakers across the United States have expanded efforts regulate the usage of AI in government. 

What Would CA S.B. 719 Change About AI Regulation?

The main goals of S.B. 719 are to regulate the systems “used to assist or replace human decisions that have a significant legal impact” on major areas like education and housing from 2029-2032. S.B. 719, if passed, would require the CA Department of Technology to report an annual inventory of  “all high-risk automated decision systems…used, developed, or procured by a state agency.” In practice, the Department of Technology must report yearly on every high-technology tool used in the government. In this bill, “high-risk automated decision system” refers to any program derived from AI, statistics, machine learning, or data analytics, with some examples including facial recognition and social media networks.The bill does not seek to regulate other governmental areas outside of “housing, education, employment, credit, healthcare, and criminal justice.”The bill was recently re-referred to the Judiciary and Appropriations committees on January 13th, 2025. 

How Would S.B. 719 Benefit Responsible AI Use?

Supporters of S.B. 719 believe the bill would be beneficial for responsible AI oversight. The bill works towards the prevention of discrimination and bias in the development of technology and artificial intelligence. S.B. 719 would allow California to keep up with federal laws and would provide a balance between state and federal regulation, as effective oversight comes from both levels of government. In December 2025, Governor Newsom created the state Innovation Council to “bolster AI use in state government” and regulate new technologies without hindering innovation within the state. The state of California also strives to continue AI regulation as the current “federal government lags” in the same sphere of oversight, promoting effective oversight alongside innovation. 

What Concerns Have Been Raised About S.B. 719?

Critics claim the bill would become an interference in public and private technology sectors. Companies with efficient business practices have pushed back against inventorying governmental technology. Increased inventorying requires companies to change their processes and “act quickly to ensure compliance.” This increased regulation may be difficult to enforce for each agency and may promote more secretive technology developments within California. 

Opponents also argue that S.B. 719 conflicts with  federal oversight. They argue that the federal government, rather than the state should be responsible for regulating the country’s technology sector. Congress has more financial resources and expertise to effectively regulate AI, and the White House as a whole is shifting away from regulation towards advancing development. 

 Finally, S.B. 719 can be viewed as a hindrance on innovation and economic growth for California. Increased AI innovation boosts wages and growth in the state. According to the California Budget and Policy Center, income growth in California in 2025 can be attributed to “recent gains in high-wage, tech-related industries that are benefitting from the surge in AI investment.” The newly developed AI detector also promotes economic development while increased regulation may hinder that growth.

How Could S.B. 719 Affect State Operations and Oversight if Enacted?

If passed, CA S.B. 719 would continue the state’s precedence of state technology regulation. California as a whole would continue their goal of promoting innovation while safely regulating new technologies to protect their citizens and companies. The implementation of S.B. 719 would also be a clear response to the federal administration’s less restrictive regulation. However, the long-term economic and developmental impacts of S.B. 719 and similar bills remains unknown. 

What Does This Debate Reveal About California’s AI Governance Approach?

The application of S.B. 719 would maintain California’s reputation as a strong state leader in technology regulation. S.B. 719 and similar bills are particularly important for the state as the laws would directly affect Silicon Valley, which makes up a significant part of the growing AI and technology market globally. By regulating AI development within its borders, California aims to set standards for safety and equity in technological innovation. The federal government has been lenient in regulating newly developed technologies. So, this regulation influences how companies in Silicon Valley and across the United States create and implement artificial intelligence.