California is stepping deeper into the role of AI regulator as Attorney General Rob Bonta moves to establish a dedicated artificial intelligence accountability program while continuing an investigation into Elon Musk’s xAI.
The probe focuses on the generation of non-consensual sexually explicit images by xAI’s chatbot Grok. State authorities issued a cease-and-desist letter last month amid growing global scrutiny of the company’s AI outputs. Regulators are now seeking confirmation that the problematic conduct has stopped.
Bonta said discussions with xAI are ongoing, noting that the company has disputed responsibility and still allows some sexualized content generation for paying users. While xAI previously introduced safeguards to block explicit depictions of real individuals, California officials are assessing whether those measures are sufficient.
The new oversight program will strengthen the state’s internal expertise in AI regulation and enforcement. It signals California’s intention to act as a leading watchdog despite pressure from some industry voices and federal lawmakers who prefer centralized oversight in Washington.
Authorities have also communicated with OpenAI, indicating continued interest in safety measures for AI systems operating within the state.
As legislators consider formalizing the program through new law, officials describe AI-related harms—particularly risks to minors—as an emerging consumer protection challenge with long-term societal impact.
