As California Governor Gavin Newsom moves to impose AI safeguards through state contracting, the executive order underscores a broader split with the Trump administration’s deregulation‑first approach, raising questions for companies that want to do business with the state. In a new Law360 article, Womble Bond Dickinson Partner Chris Mammen said AI companies will need to carefully balance the commercial upside of California contracts against the compliance burden that may come with new certification and safety requirements.
At the same time, he suggested the order could ultimately create favorable market conditions, likening the effort to California’s clean air regulations for automobiles, which initially raised concerns but later drove collaboration and innovation between industry and the state. "I'm tempted to draw an analogy with, for example, California's clean air regulations with respect to automotive admission emissions, which is something that California has long exercised its independent judgment on, and has led to some favorable collaborations between industry and the state. So it's possible that this could go in a similar direction.”

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