Tech Alert

Overview

The California Department of Technology (CDT) is proud to provide multiple secure, responsible, and streamlined methods for State entities to acquire Generative Artificial Intelligence (GenAI) productivity tools. Unlike bespoke, custom-developed AI solutions, GenAI productivity tools are off-the-shelf software with limited customization that can be purchased and utilized directly by State workers to save time, automate workflows, or spark new, creative ideas. Examples of these tools include but are not limited to ChatGPT, Gemini, Copilot, and Claude.

State entities may procure these products via their ongoing CDT contracts, the CDT Private Cloud Marketplace, and a contract directly with a GenAI productivity tool vendor or re-seller. In the future, CDT will provide even simpler options for procurement.

Why This Matters:

As State entities look to adopt GenAI productivity tools to better meet their business objectives, it can be challenging to best understand how to acquire and responsibly use these technologies. CDT has provided multiple opportunities for GenAI productivity tool adoption and continues to break down bottlenecks and simplify the adoption and acquisition of innovative and emerging technologies in a safe and responsible way.

Similarly, as State entities begin to consider how to leverage GenAI productivity tools, management shall also work closely with Labor Relations to ensure department compliance with any union notice and/or collective bargaining obligation occurs prior to implementation.

How Can Departments Currently Acquire GenAI Productivity Tools?

CDT Cloud Contracts

CDT has renegotiated the terms of its Cloud computing contracts to enable its clients to purchase GenAI productivity tools directly as services through their Cloud provider. For example, if a department is utilizing Microsoft Azure, then they can purchase AI products such as Azure OpenAI directly through their current Cloud contract just like they would any other Cloud service.

Right now, CDT has Cloud contracts with Amazon Web Services (AWS), Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure. It is important to note that Cloud providers offer multiple GenAI products even if they are produced by a different vendor. Microsoft Azure, for instance, might offer Meta’s Llama model and AWS might offer access to Anthropic’s Claude model in addition to Microsoft and Amazon-developed models, respectively.

CDT continues to update its Cloud contracts to allow for more GenAI options. Please contact your CDT Account Lead through CDT Customer Engagement Services for more information on how to leverage your current Cloud contract to acquire GenAI productivity tools.

CDT Private Cloud Marketplace

As CDT announced in Tech Alert 25-04, it has launched a first-in-the-nation Private Cloud Marketplace. It is an online storefront of pre-approved Cloud offerings that allows State entities to browse, click, and easily acquire services including GenAI productivity tools. All offerings in the Private Cloud Marketplace are pre-selected for compliance with State policies and thus do not require a 5305-F form or any additional State paperwork.

While there are limited GenAI productivity tools available now as the Marketplace was launched at the end of June 2025, CDT is actively engaging departments and vendor partners to expand GenAI offerings.

On that note, if a desired service or product is not currently listed in the Marketplace, departments can easily submit a Cloud Marketplace Purchases request via the CDT IT Services Portal (ServiceNow). The request will be reviewed quickly for purchase if appropriate. CDT encourages this feedback as client input directly shapes the available products in the Marketplace. Please contact your CDT Account Lead through CDT Customer Engagement Services for more information.

Contracts with GenAI Productivity Tool Providers or Resellers

If there is a GenAI productivity tool that cannot be acquired through an existing Cloud contract or the CDT Private Cloud Marketplace, departments may acquire this technology via a direct contract with a relevant vendor or reseller. State departments must follow all regular AI procurement policies and procedures (including the submission of a 5305-F Self Risk Assessment), and the contract must contain the State’s Cloud and AI terms and conditions.

To further simplify the procurement of these tools, CDT is exploring the creation of centralized GenAI productivity tool contracts with GenAI vendors to provide productivity tools as a service as CDT does with Cloud computing.

State departments may also utilize the State’s Software Licensing Program (SLP) to purchase some GenAI productivity tools. As of the publication of this Tech Alert, Google, Microsoft, Adobe, and other popular technology vendors provide GenAI products that can be purchased through the SLP. DGS is continuing to work with vendors to identify specific products that are included in current SLP agreements. Furthermore, CDT is encouraging the vendor community to work with DGS to expand GenAI offerings under the SLP.

CDT is Further Accelerating GenAI Productivity Tool Adoption by Streamlining Procurement

While CDT currently offers a variety of safe, effective, and efficient ways to acquire GenAI productivity tools, it is further streamlining these approaches to accelerate Statewide adoption. These ongoing efforts include:

• Revising CDT Cloud contracts to expand the accessibility and availability of GenAI productivity tools
• Establishing agreements with GenAI vendors and Cloud providers to expand the number of GenAI offerings on the CDT Private Cloud Marketplace
• Creating consolidated and centralized contracts directly with GenAI vendors to allow State entities to procure GenAI productivity tools with just a purchase order
• Exploring centrally managed AI services such as a State Digital Assistant that is pre-configured for State use, built around State data, policies, and websites, and can be deployed more cost-effectively by utilizing the purchasing power and economies of scale of the State.

CDT will continue to keep our clients updated on new GenAI offerings across the State as well as how to effectively and responsibly purchase and utilize them.

As a reminder, State entities seeking to adopt or implement GenAI productivity tools must coordinate such efforts with Labor Relations.