California AG warns AI firms that most of what they’re doing is illegal

California’s Attorney General Rob Bonta has issued legal advisories highlighting potential illegal practices in the artificial intelligence industry, particularly focusing on deception, false advertising, and discrimination.

Key developments: The California Attorney General’s office released two legal advisories on January 13th that outline various ways AI companies may be violating state laws.

• The advisories specifically address concerns about AI systems being used for deceptive purposes, including the creation of deepfakes and misleading chatbots
• Companies making false claims about AI capabilities or misrepresenting human involvement in AI systems could violate false advertising laws
• The guidance warns against AI systems that discriminate against protected classes, particularly in housing and employment opportunities

Legal implications: The advisories serve as a warning to AI companies about potential legal violations under California state law.

• Companies using AI to create deceptive content, including deepfakes and voice clones, may face legal consequences
• False advertising violations could occur when companies exaggerate AI capabilities or misrepresent the level of human involvement in their systems
• Automated systems that demonstrate bias or discriminatory impacts could violate state anti-discrimination laws

Industry impact: These legal advisories signal a growing scrutiny of AI business practices and their compliance with existing regulations.

• The guidance suggests companies should self-regulate to avoid potential criminal liability
• AI companies face additional legal challenges beyond those mentioned in the advisory, including ongoing copyright disputes
• OpenAI’s current lawsuit with The New York Times over copyright issues highlights the unsettled nature of AI-related legal territory

Looking ahead: The AI industry finds itself at a critical juncture where established laws and regulations are being applied to novel technologies, creating uncertainty around standard business practices. With mounting legal challenges and increased regulatory attention, AI companies may need to significantly adjust their operations to ensure compliance with existing laws while courts continue to establish precedents in this emerging field.