An act to add Chapter 25 (commencing with Section 22756) to Division 8 of the Business and Professions Code, relating to artificial intelligence.

• Authority: California
• Parent authority: State governments
• Jurisdiction: United States
• Collections: U.S. state and local documents
• Most recent activity: Defunct
• Most recent activity date: 2024-01-31

Risk subdomain coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the risk subdomain are explicitly described.

• Unfair discrimination and misrepresentation
• Unequal performance across groups
• Governance failure
• Lack of capability or robustness
• Lack of transparency or interpretability

Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the risk subdomain are described.

• Compromise of privacy
• Overreliance and unsafe use
• Loss of human agency and autonomy

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

The document has good coverage of approximately 6-8 subdomains, with strong focus on unfair discrimination (1.1, 1.3), privacy concerns (2.1), governance structures (6.4, 6.5), and AI system limitations (7.3, 7.4). Coverage is concentrated in discrimination prevention, transparency, and governance domains.

Sector coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the sector are explicitly described.

• Finance & Insurance
• Educational Services
• Health Care & Social Assistance
• Public Administration (excl. National Security)

Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the sector are described.

• Trade, Transportation & Utilities
• Information
• Real Estate, Rental & Leasing
• Professional & Technical Services
• Management, Administrative & Support Services
• Accommodation, Food & Other Services

All other sectors had no coverage in this document.

Sectors Summary

The document governs AI use across 11 of 14 economic sectors, with particularly detailed coverage of employment, education, healthcare, financial services, housing, criminal justice, and public administration. The regulation applies broadly to any entity deploying automated decision tools for consequential decisions affecting individuals in these sectors.

Legislative Status

Hard Law

Legislative Status Summary

This is a binding California statute with mandatory obligations, enforcement mechanisms including civil actions and administrative fines, and specific penalties for non-compliance.

Actors

Proposer

• Entity Types: AI_Governance_Actor
• Summary: This is a California legislative act adding a new chapter to the Business and Professions Code, indicating it was proposed and enacted by the California State Legislature.

Target

• Entity Types: AI_Developer, AI_Deployer
• Summary: The statute explicitly defines and regulates both 'deployers' and 'developers' of automated decision tools, imposing obligations on both categories of entities.

Enforcer

• Entity Types: AI_Governance_Actor
• Summary: The statute designates multiple government enforcement bodies with authority to bring civil actions and impose administrative fines for violations.

Monitor

• Entity Types: AI_Governance_Actor, AI_Deployer, AI_Developer
• Summary: The statute requires deployers and developers to designate employees for oversight and compliance monitoring, and mandates submission of impact assessments to the Civil Rights Department for review.

AI Lifecycle Stages

Lifecycle stages covered by the documents, as defined in the OECD Framework for the Classification of AI Systems

• Plan and Design
• Collect and Process Data
• Build and Use Model
• Verify and Validate
• Deploy
• Operate and Monitor

AI Lifecycle Summary

The document covers multiple lifecycle stages with primary focus on deployment and operational monitoring. It addresses design considerations through impact assessment requirements, validation and verification through evaluation requirements, and extensively covers deployment notification and ongoing monitoring obligations.

Technical Scope

Terms relating to technical scope that are mentioned or implicitly referenced in the document

• AI Systems
• Predictive AI
• Task-specific AI

Technical Scope Summary

The document explicitly defines and regulates 'artificial intelligence' and 'automated decision tools' but does not specifically mention frontier AI, general purpose AI, foundation models, generative AI, predictive AI, open-weight models, or compute thresholds. The focus is on AI systems used for consequential decision-making regardless of their technical architecture.