5 Things To Know About Potential AI Legislation For CA Businesses

Artificial intelligence (AI) is changing the way companies conduct business, and not always in a good way. California wants to ensure that these changes don’t harm people or society as a whole, so lawmakers were invited to introduce bills to create rules for using AI in businesses. They didn’t disappoint: state senators and assembly members introduced more than 2,100 AI regulation bills.

California Bills Shine Spotlight on 5 Important Things to Know about AI

Of the thousands of bills introduced, California lawmakers will likely focus on those bills that will have the most meaningful impact on workplace issues in general, and on a few specific employers. Here are a few issues they will cover:

1. Algorithmic Discrimination

Algorithmic discrimination happens when AI treats people unfairly based on race, gender, religion, and other protected characteristics. Algorithmic discrimination can have catastrophic results when making a consequential decision that affects someone’s employment or employment opportunity.

If enacted, AB 2930 (Bauer-Kahan) would prohibit employers from using automated decision tools to make a consequential decision that results in algorithmic discrimination. Employers could face a $25,000 fine per violation if:

• They use it to make decisions regarding hiring, firing, pay, promotions, or certain other operations
• AI contributes to discrimination or poor treatment of employees based on race, color, ethnicity, or other legally protected classification

The bill also requires employers to provide advanced notice that they will be using automated systems to make consequential decisions. It also creates a way for people to request an alternative process, such as having a human make the decision.

2. It May Replace Millions Of Workers

A recent Goldman Sachs report says that AI will replace 300 million jobs worldwide within just a few years, which means millions of families will lose their income. AB 3058 (Low) would create a “universal basic income” program for California workers whose employment is replaced by AI. It has not been determined whether employers or public funds would fund the program.

3. Large AI Models Can Have Seriously Big Consequences

Also known as the “Safe and Secure Innovation for Frontier Artificial Intelligence Systems Act,” SB 1047 (Wiener) would require the largest, most powerful AI developers to:

• Make sure the AI models cannot produce catastrophic results, such as the ability to create nuclear weapons or steal millions through cyberattacks
• Protect their models from unauthorized access
• Design models that will fully shut down right away if something goes wrong

SB 1047 also protects whistleblowers who report noncompliance with the Act.

4. “Digital Replicas” Can Steal Your Image And Your Job

The entertainment industry regularly creates digital replicas of actors and uses them in a variety of ways. In fact, many entertainers have already signed contracts that gave studio executives the right to use these digital replicas almost any way they wanted in the future. – AB 2602 (Kalra) would make a digital replica contract provision retroactively unenforceable if it:

• Allows the creation and use of a digital replica of a performer’s likeness or voice to either train an AI system or in place of the actor
• Does not clearly spell out how the digital replicas or AI systems will be used

The bill hopes to prevent situations in which someone loses work because a business uses their digital replica instead.

5. California Will Monitor For The Best And Worst AI Practices

The “Artificial Intelligence Accountability Act” (SB 896 (Dodd)) would require certain state agencies to report on the potential best uses of AI tools and to assess the risk it poses to California’s critical energy infrastructure.

Did Big AI Affect Your Job? Contact Your Employment Attorneys At D.Law!

Many describe artificial intelligence as a “tidal wave” that will ultimately affect all workers in some way. If you have been negatively affected by AI in the workplace, new laws may protect you. To learn more, contact or call D.Law. Our employment law attorneys can help you exercise your rights as a worker in the Bay Area, San Diego, Fresno, Los Angeles, and other California cities.