California is positioning 2026 as a major year for AI leadership, with a mix of new laws, regulatory efforts, workforce initiatives, and policy debates shaping how the state navigates the technology’s benefits and risks. The Transparency in Frontier AI Act (SB 53) — which took effect January 1 — requires major AI developers to be more transparent about safety and risk mitigation and includes protections like whistleblower reporting, part of broader efforts to make the state’s AI ecosystem more accountable and trustworthy. Lawmakers are also turning attention to issues such as AI energy consumption from data centers and the potential economic impact on jobs, while tensions continue between innovation goals and regulatory scrutiny as elections loom. Despite federal resistance, California is pushing ahead with policies it hopes will both spur innovation and protect consumers and workers in the AI era
