As a leading technology hub, it’s no surprise that California is at the forefront of technology regulation, particularly when it comes to artificial intelligence (AI). Over the past year, California lawmakers have introduced numerous laws aimed at regulating AI, focusing on issues such as transparency, data disclosure, content labeling, privacy and education. In 2024 alone, California Governor Gavin Newsom signed more than a dozen other AI-focused bills.
These laws address a wide variety of AI-related issues, from deepfake pornography to AI-generated clones of Hollywood actors to concerns over transparency and consumer privacy. As AI becomes an essential part of domestic and global industries, the need for regulation grows. Professionals looking to navigate the complexities of data privacy, compliance, and AI-driven technology can look to California as a model for navigating a rapidly changing landscape and anticipating future regulations in three other States.
Here’s a look at ten major AI laws recently enacted in California:
Defining AI (AB 2885)
Presented by Assembly Member Rebecca Bauer-Kahan, AB 2885 defines AI within California law, creating a consistent legal framework. The law describes AI as a “machine-designed or machine-based system” capable of generating results based on input data. By standardizing the definition of AI, the law clarifies future regulations and helps ensure consistency across sectors. AB 2885 will take effect on January 1, 2025.
Transparency of AI training data (AB 2013)
Assembly Member Jacqui Irwin presented AB 2013which requires developers of generative AI models to disclose the datasets used in training their systems. Scheduled to take effect in 2026, this law aims to address concerns about bias and risks arising from undisclosed data sources. It improves transparency, allowing regulators and consumers to understand the foundations of AI systems, thereby fostering greater trust.
AI Content Transparency (SB 942)
That of Senator Josh Becker BS 942 focuses on ensuring that AI-generated content is clearly identified through watermarks. This law, signed in September 2024, requires AI-generated content to include visible markings, helping consumers distinguish between human-made and AI-created materials. It also requires the development of publicly accessible detection tools, thereby improving transparency in the media, communication and education sectors.
Responsibility for AI in Government (SB 896)
Senator Bill Dodd introduced BS 896 to bring AI surveillance into state agencies. This law requires agencies to assess the risks and benefits of using AI tools and to disclose instances where AI is used in public interactions. The aim is to increase transparency in the government’s use of AI and build public trust.
Privacy and AI Systems (AB 1008)
AB 1008introduced by Assembly Member Rebecca Bauer-Kahan, amends California’s Consumer Privacy Act to cover AI systems that process personal data. This ensures that AI tools generating personal information must comply with California’s strict privacy laws. The amendment strengthens consumer protection and addresses concerns about the misuse of sensitive data.
Combating Deepfake Pornography (AB 1831, SB 926 and SB981)
Governor Newsom has signed several bills aimed at addressing the growing problem 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 that allow users to report fake nudes. Platforms are required to temporarily block content reported during the investigation and permanently remove content that constitutes deepfake.
AI in the entertainment industry
Two additional laws, supported by the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), set new standards for the use of AI in the entertainment and media industry. AB-2602 requires studios to obtain consent from actors before creating AI-generated replicas of their voice or image, while AB-1836 extends this protection to deceased artists by requiring studios to obtain approval from their estates before making digital replicas. These laws aim to protect the rights of actors and their property in the context of advances in AI technologies capable of digitally recreating artists.
AI in Healthcare (AB 3030)
Assembly Member Lisa Calderon AB 3030 requires healthcare providers to disclose when AI tools are used in patient care. This law ensures that patients are informed about the involvement of AI in diagnosis, treatment or communication, thereby enabling informed consent and increasing transparency in the healthcare sector.
Mastering AI in Schools (AB 2876)
AB 2876presented by Assembly Member Marc Berman, focuses on integrating AI culture into California public school curriculum. The law directs the development of AI proficiency 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 2905introduced by Assemblymembers Evan Low and Jim Patterson, requires telemarketers to disclose when AI-generated voices are used in robocalls. The law is designed to avoid 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 shows its proactive stance on the potential benefits and risks of artificial intelligence. Covering areas such as privacy, education, health care, and election integrity, these laws represent some of the most comprehensive AI regulations in the United States, setting precedent for how AI AI can be responsibly anchored in society while protecting consumer rights and ethical standards.
Businesses operating or serving California residents must act quickly to comply with these new requirements. Businesses that serve customers outside of California should also pay attention, as similar regulations are likely to emerge in other states, so it makes sense to evaluate and prepare compliance measures aligned with these trends regulatory.