California is spearheading a groundbreaking transformation of public procurement processes with the aim of responsible ai governance. The state, which boasts an annual budget of $310.8 billion allocated to procurement, recognizes the immense potential of utilizing its purchasing power to shape ai markets in the best interest of the public good.
Subnational innovation driving change
California’s progressive stance on technology regulation has positioned it as a hub of subnational innovation in ai governance. Executive Order N-19-20 issued by the state directs various agencies and centers to reform public sector procurement, prioritizing considerations of uses, risks, and necessary training to improve ai purchasing practices.
At the forefront of this movement is the GovAI Coalition, a collaborative effort led by the city of San José and consisting of over 150 local, county, and state agencies. The Coalition’s goal is to pioneer innovative processes for responsible ai procurement within the public sector. Their recent release of policy templates, including the ai FactSheet and standard contractual clauses for ai systems, represents a significant step towards promoting transparency and accountability in ai procurement.
Promoting transparency and accountability: The ai FactSheet
The ai FactSheet is a standardized document designed to be completed by vendors during the procurement process, capturing technical details about ai systems. Information provided includes crucial details such as training and testing data, performance metrics, and algorithmic bias. The FactSheet offers agencies comprehensive insights into the capabilities and limitations of ai systems, enabling informed decision-making and fostering vendor accountability.
Promoting transparency and accountability: Standard contractual clauses
To formalize responsible ai standards, the GovAI Coalition has introduced standard contractual clauses. These legal addendums to purchasing agreements mandate vendors to adhere to specified ethical standards and provide transparency regarding ai systems’ capabilities and biases. By holding vendors accountable through contractual obligations, public agencies can ensure the ethical deployment of ai technologies.
California’s procurement overhaul sends ripples across ai markets. Companies are incentivized to align their products with common standards as state and local agencies represent a significant customer base for ai firms. The pressure to meet procurement specifications set by these entities drives a shift towards greater transparency and accountability in the development and sale of ai systems.
A global influence
Though California’s initiatives primarily focus on the subnational level, their impact transcends geographical boundaries. With clear national guidelines absent, the standards imposed by California may become de facto national or even global benchmarks. This is especially significant given the state’s substantial purchasing power and role as a trendsetter in technology regulation.
As California leads the charge in redefining the landscape of ai procurement, the focus shifts towards fostering transparency, accountability, and ethical considerations in deploying ai technologies. Innovative measures such as the ai FactSheet and standard contractual clauses set a precedent for responsible ai governance, paving the way for a future where technology serves the public good while upholding ethical standards.
