Governor Gavin Newsom’s recent executive order on AI transparency may reshape global governance faster than many expect. Signed in late September 2025, the order requires state agencies and vendors to disclose when AI systems influence public services and to publish annual transparency reports (California Governor’s Office, 2025). While the policy applies to California, its implications reach far beyond. The state’s economic weight and history of setting tech standards make it a likely template for other governments.

Transparency has become the test of credibility in AI policy. Where Europe’s AI Act codifies documentation obligations, California’s approach creates a live experiment in enforceable disclosure. It moves beyond voluntary ethics statements to a compliance structure built around evidence. This reflects a broader global pattern: regulators realizing that transparency is not a public-relations gesture but the precondition for accountability.

For companies developing or selling AI systems, the California order introduces operational pressure. Public disclosure of model use, training data summaries, and risk mitigation plans requires internal auditability. Organizations will have to maintain records that can withstand scrutiny—an evolution from compliance checklists to living documentation systems.

Societally, the policy may reset expectations. Citizens and journalists will gain insight into how government services use AI to make decisions, from benefits assessments to licensing. That visibility could restore trust where automation has previously raised suspicion. For private-sector actors, the cultural shift is clear: opacity is no longer defensible as a business norm.

The broader trajectory points toward convergence. As similar mandates emerge across Europe and Asia, organizations that embed transparency at the design stage—recording decisions, training data provenance, and monitoring results—will find compliance simpler. Those that treat it as an afterthought will face an impossible retrofitting challenge once regulation catches up.

References

California Governor’s Office. (2025). Executive order on artificial intelligence transparency and accountability. https://www.gov.ca.gov
European Parliament. (2024). Artificial Intelligence Act (Regulation (EU) 2024/1689). https://artificialintelligenceact.eu/
PwC. (2024). Responsible AI survey. PwC. https://www.pwc.com/responsible-ai