As noted in last month’s blog, three states have enacted artificial intelligence (AI) regulations, including Utah, Colorado, and California. We last discussed the relatively business-friendly Utah legislation, but this week, we are covering some stricter California laws. Out of 30+ AI bills introduced in California, at least 17 have passed, giving rise to the most overarching “bundle” of AI legislation in the country. This should come as no surprise, considering that 35 of the top 50 artificial intelligence companies are based in California, prompting the California Governor to issue an Executive Order (N-12-23) to study the benefits, risks, and developments of AI technology in the State. Some key areas in the newly passed legislation include:
1. Privacy: AB-1008 expands the robust California Consumer Privacy Act (CCPA) by applying those privacy rights to the world of generative AI and large language models (LLMs). More specifically, the bill places restrictions on businesses that profit from AI systems that expose people’s personal information.
2. Education: AB-2876 requires the California State Board of Education to consider including AI and media literacy content for the math, science, and history-social science school curricula and instructional material when they are next revised after January 1, 2025. In addition to that, SB-1288 requires public Superintendents to convene for the specific purpose of developing a model policy and guidance on the safe application of AI in education for students and educators alike.
3. Transparency: Several new laws touch on this topic. Starting with AB 2013, which focuses on training data transparency, requires developers of generative AI (GenAI) to publicly disclose a high-level summary of the datasets used in the development of any GenAI system or service that began or was substantially modified on or after January 1, 2022. SB-942 further promotes transparency in the AI space by requiring popular (i.e., GenAI systems with over 1,000,000 monthly visitors) to make available AI detection tools, disclose and identify content that is AI-generated clearly and conspicuously, and revoke the GenAI license of a third party within 96 hours of discovery that the third party did not make the mentioned disclosures. Failure to abide by these disclosures will result in civil penalties and/or the possibility of injunctive relief.
4. Deepfake: The dangers of “deepfake” also took precedence, especially those involving elections and pornography. AB-2655 and AB-2839 both address the application of using AI-generated deepfakes, with the former requiring large online platforms to remove or make known election-related AI deepfakes that circle their space. Online platforms must also provide a means to report such content. Concerning deepfake pornography, AB-1831 expands on the existing child pornography laws by including content that is generated by AI. AB-926 would also prohibit the usage of AI-generated nude images for blackmail.
Despite the wide coverage of AI bills that were passed this last cycle, one bill in particular, SB-1047, did not pass muster for the Governor, who drew a line by stating in his veto letter that “[b]y focusing only on the most expensive and large-scale models, SB-1047 establishes a framework that could give the public a false sense of security about controlling this fast-moving technology.” The Governor found that SB-1047 would potentially inhibit innovation by only focusing on the larger AI systems when it is also plausible that “smaller, specialized models” can cause just as much harm.
On the whole, California’s flurry of activity seeks to create guardrails in the AI space, but it is also creating a very confusing schema for companies to navigate. Simply having to navigate so many pieces of legislation to figure out compliance means that organizations need to rely on professionals to help them navigate these waters. Despite the availability of online resources to unearth regulatory requirements, actually threading the needle of compliance requires input from dedicated experts.
To that end, the plot thickens. So far, in this blog, we have only covered Utah and California. Next, we will address Colorado’s new law while eventually turning our attention to U.S. federal and other international initiatives.
In the interim, as always, please free to contact me if you have further questions, thoughts, or comments. The more you interact with me, the better I will be able to address real world concerns. If you prefer, you can click this link to book a meeting with me if you have any pressing issues you need to get off your chest. Click: https://isazalaw.com/booking
John – The blog summary is very helpful and it will be very important for us to all stay up to date on the fast changing legislation, acts, EOs at state, federal and international levels. Look forward to seeing your thoughts.