Thompson Coburn partner Luke Sosnicki recently authored an article in Cybersecurity Law Report about California’s pending regulations on automated decision-making technology, which will further focus consumers’ attention on AI. His article explores the current advisories and proposed regulations, anticipates the impact on businesses when the drafts are finalized, and provides practical guidance for companies to assess their practices and prepare for compliance.
In the article, Luke highlights the first advisory, “California Attorney General’s Legal Advisory on the Application of Existing California Laws to Artificial Intelligence” (Existing Laws AI Advisory). This advisory generally informs consumers and entities engaging with AI of their rights and obligations under various California statutes, including those related to consumer protection, civil rights, competition, and data privacy laws. “The advisory reminds California consumers that AI poses significant risks such as bias, discrimination, misinformation and fraud, and declares that many consumers remain unaware of AI’s mechanisms and impacts,” he wrote.
He noted that the second advisory, while similarly addressing compliance with California’s consumer protection, unfair competition, civil rights, and privacy laws, specifically focuses on health care providers, insurers, and other health care entities.
When proposed new regulations take effect, he noted, “consumers will not only be presented with information about the AI technology that businesses are using, but they will have the legal right to ask questions about aspects of that use that they do not understand.” The comment period is open until February 19, and the proposed regulations will likely be amended before they take effect, which could be as soon as later this year. Companies can prepare, Luke wrote, by taking proactive steps including determining whether they will be covered, gaining an understanding of their AI use, and updating their standard notices and request responses.
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