California’s Pending Automated Decision-Making Technology Regulations Will Further Focus Consumers’ Attention on AI

Legislators, including in California, had a busy 2024, enacting laws intended to get ahead of some of the negative consequences of widespread use of AI. Several state AGs have been busy issuing AI-related guidance to their residents and businesses as well. In California, less than two weeks into the new year, AG Rob Bonta issued two legal advisories reminding California’s consumers of their rights and reminding businesses that develop or use AI about their legal obligations under California law. Only a few weeks before Bonta issued the advisories, the California Privacy Protection Agency initiated the formal rulemaking process for proposed regulations for insurance, cybersecurity audits, risk assessments and automated decision-making technology. In this guest article, Thompson Coburn partner Luke Sosnicki examines the advisories and proposed regulations, discusses what businesses can expect when the drafts are made final, and offers practical advice to help businesses assess and prepare to comply with the final rules. See “Navigating Ever-Increasing State AI Laws and Regulations” (Jan. 15, 2025).

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