California’s new AI laws — here’s what you should know

California’s AI legislation: A landmark moment in tech regulation: California has enacted a comprehensive set of 18 AI-related laws, marking a significant step in regulating artificial intelligence across various sectors and applications.

Key areas of regulation: The new laws address multiple aspects of AI development, deployment, and use, reflecting the technology’s broad impact on society and the economy.

• AI development transparency: AB-2013 mandates transparency in AI training data, requiring developers to disclose information about the data used to train AI systems.
• Risk assessment for government agencies: SB-896 introduces new requirements for government agencies to evaluate AI systems’ risks in catastrophic scenarios.
• Healthcare AI oversight: AB-3030 and SB-1120 focus on patient protection when healthcare providers use generative AI, including disclosure requirements and proper oversight of AI tools in patient care.
• Enhanced privacy protections: AB-1008 extends California’s privacy protections to include AI-exposed user information, while AB-2602 and AB-1836 prohibit the use of generative AI to create content using a person’s likeness without permission.

AI definition and education: The legislation also addresses the fundamental understanding and integration of AI in society.

• Legal definition of AI: AB-2885 provides a comprehensive definition of AI as “an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.”
• AI literacy in education: AB-2876 requires the California Board of Education to consider AI literacy in subjects like math and science, while SB-1288 mandates superintendents to explore AI challenges and opportunities in public education.

Combating deepfakes and misinformation: Several laws aim to protect individuals and the democratic process from the misuse of AI-generated content.

• AB-2905 requires disclosure when deepfake-created voices are used in robocalls.
• AB-1831, SB-926, and SB-891 focus on protecting individuals from exploitation through deepfakes.
• AB-2655, AB-2839, and AB-2355 address measures to prevent deepfakes from influencing election content, including platform labeling, content removal, and creator disclosure requirements.

Notable omission: Governor Gavin Newsom vetoed SB-1047, a bill that would have regulated large AI systems by requiring developers to document creation practices, develop safety protocols, and provide whistleblower protections for employees at AI companies.

Implications for businesses and individuals: The new legislation has far-reaching consequences for companies operating in California and beyond.

• Companies using AI technologies will need to ensure compliance with these new regulations, particularly in areas such as data transparency, risk assessment, and privacy protection.
• Businesses should develop internal guidelines to help employees remain compliant while leveraging AI to maximize effectiveness.
• Individuals can expect increased protection against the misuse of their personal data and likeness in AI-generated content.

Looking ahead: Setting a precedent for future regulation: California’s AI laws are likely to influence similar legislation in other states and potentially at the federal level.

• The comprehensive nature of these laws provides a framework that other jurisdictions may use as a model for their own AI regulations.
• The vetoed SB-1047 indicates ongoing public interest in regulating AI development, suggesting that similar proposals may resurface in the future.
• Companies should prepare for a dynamic regulatory landscape, staying informed about new laws and monitoring early case law to understand how courts will interpret and apply these regulations.

Broader implications: California’s AI legislation represents a significant step towards establishing guardrails for AI technology while balancing innovation and protection.

• The laws reflect growing concerns about AI’s potential impact on privacy, healthcare, education, and democratic processes.
• By taking a proactive approach to AI regulation, California is positioning itself as a leader in tech policy, potentially influencing global standards for AI development and deployment.
• As AI continues to evolve rapidly, the effectiveness and adaptability of these laws will be closely watched by policymakers, industry leaders, and the public alike.