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California Expands AI Oversight Unit as Attorney General Presses xAI Investigation

GeokHub

GeokHub

3 min read
California Expands AI Oversight Unit as Attorney General Presses xAI Investigation
TECH NEWS
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SAN FRANCISCO, Feb 17 (GeokHub) — California Attorney General Rob Bonta is strengthening the state’s artificial intelligence enforcement efforts while continuing an investigation into xAI over the alleged generation of non-consensual sexually explicit images through its chatbot Grok.

Bonta confirmed that his office has launched an AI accountability initiative designed to expand internal expertise and enhance regulatory oversight as generative AI technologies rapidly evolve.

Cease-and-Desist and Ongoing Talks

Last month, the California Attorney General’s office issued a cease-and-desist letter to xAI after concerns emerged about sexualized content created by its chatbot, including images involving real individuals and potentially minors.

Bonta said regulators are seeking confirmation that the problematic conduct has stopped. Discussions with the company remain ongoing.

According to the attorney general, the company has disputed responsibility and continues to allow certain sexualized content generation for paid subscribers. He emphasized that ending disputed conduct does not absolve a company from accountability for prior actions.

xAI has previously stated that it implemented new safeguards to block requests for sexualized images of real people and to restrict such outputs in jurisdictions where they are prohibited. The company has not publicly commented on the latest developments.

California Positions Itself as AI Watchdog

The enforcement action signals California’s growing role as a leading regulator of artificial intelligence technologies, even as debates continue over whether federal authorities should take primary control of AI regulation.

Bonta cautioned against granting Congress exclusive authority over AI oversight, pointing to past legislative gridlock in areas such as data protection and emerging technologies.

The Attorney General’s office is expanding its “AI oversight, accountability and regulation program” to ensure it has the technical capacity to evaluate complex AI systems. Bonta said chatbots engaging in sexually explicit conversations with minors or providing harmful guidance are unacceptable and warrant strong enforcement measures.

Broader Scrutiny of AI Companies

State authorities have also notified OpenAI of California’s continuing interest in ensuring that its products meet safety standards. The attorney general’s office previously played a role in overseeing aspects of the company’s corporate restructuring.

Meanwhile, California lawmakers are considering legislation that would formalize the AI oversight program within the Attorney General’s office, strengthening the state’s long-term regulatory authority over artificial intelligence systems.

In a joint interview, William Tong described AI and social media-related harms as one of the most significant consumer protection challenges facing states today, particularly in relation to youth safety.

The Bigger Picture

As generative AI tools become more powerful and widely adopted, regulators across the United States are grappling with how to prevent misuse while fostering innovation.

California’s expanding AI enforcement program underscores a broader shift toward state-level intervention in the absence of comprehensive federal legislation — a move that could shape the national framework for AI accountability in the years ahead.

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