What Can We Learn from California’s New AI Laws?

As a leading technology hub, it is no shock that California is at the forefront of technology regulation, including regulation of Artificial Intelligence (AI). In the past year, California lawmakers have introduced numerous laws aimed at regulating AI, focusing on issues like transparency, data disclosure, content labeling, privacy, and education. In 2024 alone, California Governor Gavin Newsom signed more than a dozen other AI-focused bills into law.

These laws address a wide variety of AI issues, ranging from deepfake pornography and AI- generated clones of Hollywood actors, to transparency and consumer privacy related concerns. As AI becomes a vital part of national and global industries, the need for regulation grows. Professionals seeking to navigate the complexities of data privacy, compliance, and AI- driven technology can look to California as a model for navigating the rapidly shifting landscape and anticipating future regulation in other states.

Here is an overview of ten major AI laws recently enacted in California:

Defining AI (AB 2885)

Introduced by Assembly member Rebecca Bauer-Kahan, AB 2885 defines AI under California law, creating a consistent legal framework. The law describes AI as an “engineered or machine-based system” capable of generating outputs based on input data. By standardizing the definition of AI, the law provides clarity for future regulations and helps ensure consistency across industries. AB 2885 will take effect on January 1, 2025.

AI Training Data Transparency (AB 2013)

Assembly member Jacqui Irwin introduced AB 2013, which requires developers of generative AI models to disclose the datasets used in training their systems. Set to take effect in 2026, this law seeks to address concerns about bias and risks arising from undisclosed data sources. It enhances transparency, allowing both regulators and consumers to understand the foundation of AI systems, thereby fostering greater trust.

AI Content Transparency (SB 942)

Senator Josh Becker’s SB 942 focuses on ensuring that AI-generated content is clearly identified through watermarks. This law, signed in September 2024, requires that AI-generated content include visible marks, helping consumers distinguish between human-made and AI-created materials. It also mandates the development of detection tools available to the public, enhancing transparency in the media, communication, and education sectors.

AI Accountability in Government (SB 896)

Senator Bill Dodd introduced SB 896 to bring AI oversight into state agencies. This law requires agencies to assess the risks and benefits of using AI tools and disclose when AI is used in public interactions. The goal is to increase transparency in the government’s use of AI and build public trust.

Privacy and AI Systems (AB 1008)

AB 1008, introduced by Assembly member Rebecca Bauer-Kahan, amends the California Consumer Privacy Act to cover AI systems that handle personal data. This ensures that AI tools generating personal information must comply with California’s strict privacy laws. The amendment strengthens consumer protections and addresses concerns about the misuse of sensitive data.

Combatting Deepfake Pornography (AB-1831, SB-926, and SB-981)

Governor Newsom signed several bills aimed at tackling the growing issue of AI-generated pornography, also known as deepfake pornography. AB-1831 expands current child pornography laws to include content generated by AI systems. SB-926 criminalizes the use of AI-generated nude images to blackmail that person, also known as AI sextortion. And SB-981 directs social media platforms to implement reporting systems for users to flag deepfake nudes. Platforms are required to temporarily block flagged content during the investigation and permanently remove content that constitutes a deepfake.

AI in the Entertainment Industry

Two additional laws, backed by the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), set new standards for AI use in the entertainment and media industry. AB-2602 mandates that studios obtain consent from actors before creating AI-generated replicas of their voice or likeness, while AB-1836 extends this protection to deceased performers by requiring studios to gain approval from their estates before making digital replicas. These laws aim to safeguard the rights of actors and their estates amid advancing AI technologies that can digitally recreate performers.

AI in Healthcare (AB 3030)

Assembly member Lisa Calderon’s AB 3030 mandates that healthcare providers disclose when AI tools are used in patient care. This law ensures that patients are informed about the involvement of AI in diagnostics, treatment, or communication, allowing for informed consent and increasing transparency in the healthcare sector.

AI Literacy in Schools (AB 2876)

AB 2876, introduced by Assembly member Marc Berman, focuses on integrating AI literacy into the public school curriculum in California. The law directs the development of AI literacy standards for K-12 education and promotes responsible use of AI among students and educators. This initiative aims to prepare future generations for an AI-driven world.

Telemarketing and AI-Generated Voices (AB 2905)

AB 2905, introduced by Assembly members Evan Low and Jim Patterson, requires telemarketers to disclose when AI-generated voices are used during robocalls. The law is designed to prevent confusion or deception in telemarketing practices, ensuring transparency in commercial and political communications.

How Businesses Can Navigate Recent AI Regulations

California’s recent wave of AI legislation showcases its proactive stance on both the potential benefits and risks of artificial intelligence. Covering areas like privacy, education, healthcare, and election integrity, these laws represent some of the most extensive AI regulations in the U.S., setting precedent for how AI can be responsibly ingrained into society while safeguarding consumer rights and ethical standards.

Businesses operating in or serving California residents must act swiftly to comply with these new requirements. Companies servicing clients outside of California should also pay attention, as similar regulations are likely to emerge in other states, making it wise to assess and prepare compliance measures aligned with these regulatory trends.

If you have questions about how this growing body of regulation might affect your business, please contact Alexandra Arko at ala@kjk.com.