The California Report on Frontier AI Policy

Abstract

The innovations emerging at the frontier of artificial intelligence (AI) are poised to create historic opportunities for humanity but also raise complex policy challenges. Continued progress in frontier AI carries the potential for profound advances in scientific discovery, economic productivity, and broader social well-being. As the epicenter of global AI innovation, California has a unique opportunity to continue supporting developments in frontier AI while addressing substantial risks that could have far-reaching consequences for the state and beyond. This report leverages broad evidence—including empirical research, historical analysis, and modeling and simulations—to provide a framework for policymaking on the frontier of AI development. Building on this multidisciplinary approach, this report derives policy principles that can inform how California approaches the use, assessment, and governance of frontier AI—principles rooted in an ethos of “trust but verify.” This approach takes into account the importance of innovation while establishing appropriate strategies to reduce material risks. The report does not argue for or against any particular piece of legislation or regulation. Instead, it examines the best available research on foundation models and outlines policy principles grounded in this research that state officials could consider in crafting new laws and regulations that govern the development and deployment of frontier AI in California. These principles are not mutually exclusive. Rather, they form a package that can robustly inform California’s AI policy. Although the report addresses a range of key topics relevant to how California can make the most of AI’s benefits and reduce its risks, this report focuses primarily on issues raised by the governance of frontier AI models, consistent with the Working Group’s understanding of Governor Newsom’s request. It is not intended to address the full range of important policy questions that arise from the increase in power and proliferation of generative AI across many facets of life in California. For example, the report does not cover how AI impacts labor and the future of work, how the large-scale data centers that fuel AI impact the environment, or the full range of specific ways in which AI capabilities can be misused. These and other related challenges offer additional opportunities to work collectively with expertise spanning disciplines and sectors.