California government to utilize generative AI tools for public services.

California’s government, led by Democratic Governor Gavin Newsom, revealed plans on Thursday to collaborate with five companies in the development and testing of generative artificial intelligence (AI) tools, aimed at enhancing public services.

Being among the first states to establish guidelines for the procurement and utilization of AI tools by state agencies, California’s initiative reflects the ongoing debate on regulating emerging technologies across the nation.

Understanding Generative AI: Generative AI is a facet of artificial intelligence capable of producing new content, including text, audio, and images, in response to prompts. Notable examples include ChatGPT by Microsoft-backed OpenAI and Anthropic, a San Francisco-based company supported by Google and Amazon.

Application in California: The state envisions deploying generative AI technology to address various challenges, such as reducing customer call wait times at state agencies and enhancing traffic management and road safety.

Initially, four state departments, including the Department of Tax and Fee Administration, the California Department of Transportation, the Department of Public Health, and the Health and Human Services Department, will pilot these AI tools.

For instance, the Department of Tax and Fee Administration plans to employ AI to expedite call handling by providing real-time access to relevant information on state tax codes, thus improving customer service efficiency.

Testing and Implementation: During a six-month trial period, state workers will internally evaluate the effectiveness and potential risks of these AI tools. The trial will involve analyzing recordings of business calls and assessing the AI’s performance.

While some tools will interact directly with the public, others, like those aimed at improving traffic congestion and road safety, will be utilized by state officials to analyze data and propose solutions.

Cost and Risks: The initial cost of the trial phase is minimal, with the state paying each company $1. However, the long-term cost and potential budgetary implications remain uncertain.

Despite the promise of efficiency gains, concerns persist regarding job displacement, misinformation, privacy, and automation bias associated with generative AI.

To mitigate risks, state officials emphasize the importance of ongoing testing, evaluation, and oversight. The need for a consistent process to assess potential risks and benefits is crucial for informed decision-making regarding broader deployment.

California’s venture into the realm of generative AI underscores both the potential and the challenges associated with adopting cutting-edge technologies in public administration.