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California is turning its attention to artificial intelligence (AI), bracing itself for widespread adoption and integration into key sectors of the state’s economy.

In a new report released by administrators, the state has identified vital use cases for generative AI but warned of the pitfalls associated with their unfettered development. The report results from an Executive Order issued by California Governor Gavin Newsom in September calling for a closer scrutiny of the emerging technology.

“This is an important first step in our efforts to fully understand the scope of GenAI and the state’s role in deploying it,” said Newsom. “We’re taking a nuanced, measured approach – understanding the risks this transformative technology poses while examining how to leverage its benefits.”

The state can leverage AI to improve the pace of ongoing government processes, classify information, and find utility for complex data sets, according to the report. To strike home the point, the report cited examples of generative AI pilots involving administrative procedures while finding use cases to improve the accessibility of government services.

For all the many benefits of generative AI, the report identified several risks faced by residents, including privacy and other security concerns. Aware of the risks, the report makes several recommendations, including a joint risk-analysis report by Californian state agencies and a procurement blueprint modeled after the framework proposed by the White House.

Newsom’s administration says it will fully support the wholesale state employee training to equip workers with new skill sets to remain competitive in an evolving work environment, engaging with the legislature and other industry stakeholders.

“To support California’s state government workforce and prepare for the next generation of skills needed to thrive in the GenAI economy, agencies will provide trainings for state government workers to use state-approved GenAI to achieve equitable outcomes, and will establish criteria to evaluate the impact of GenAI to the state government workforce,” read the report.

California hosts 35 of the world’s largest AI firms, with administrators eyeing a balanced approach toward regulation to ensure the state advances its position in AI development. Amy Tong, head of the multi-agency team that compiled the report, confirmed that California will deepen its talent pool for AI firms while conducting periodic evaluations.

A streak of embracing emerging technology

California has left a noticeable trail in embracing emerging technology, famously
accepting digital currency donations for political campaigns and turning to a blockchain technology-based wallet for improved processes.

Wracked by the high-profile collapses of the virtual asset service providers, California’s Department of Financial Protection and Innovation (DFPI) has increased its industry
monitoring, investigating both BlockFi and Voyager Digital.

The DFPI had previously flagged down the operations of 17 virtual currency websites for defrauding residents of millions of dollars in fake investment schemes.

In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.

Watch: AI & blockchain will be extremely important—here’s why

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