California Pioneers AI Regulation with New Laws for Transparency and Data Protection
February 22, 2025
California is set to implement significant regulations on generative AI, with AB 2013 and SB 942 both taking effect on January 1, 2026.
AB 2013 mandates that developers of generative AI systems document the data used for training their models.
Meanwhile, SB 942, known as the California AI Transparency Act, requires generative AI providers to disclose information about AI-generated content and include a 'latent disclosure' on AI-generated images.
As states like California push for transparency in AI, numerous others are considering similar legislation focused on employment-related regulations and high-risk use cases.
Organizations are increasingly moving from merely testing AI to implementing diverse use cases, which brings both opportunities and potential legal risks.
State attorneys general in Massachusetts, Oregon, and New Jersey are offering guidance on AI regulation, stressing the importance of compliance with existing laws such as consumer protection and anti-discrimination.
According to the World Economic Forum, a staggering 88% of C-suite executives view the adoption of artificial intelligence as a top initiative for 2025.
On a federal level, the Trump Administration is expected to release guidelines by July 2025 to bolster national AI development and security.
Minnesota's Consumer Data Privacy Act, effective July 31, 2025, will grant individuals rights regarding automated decision-making and profiling.
Colorado's Artificial Intelligence Act, effective February 1, 2026, will regulate predictive AI systems to prevent discrimination and impose penalties for violations.
Utah's Artificial Intelligence Policy Act, effective May 1, 2024, establishes disclosure requirements for generative AI and creates an Office of Artificial Intelligence Policy.
Illinois' IL HB-3773, effective January 1, 2026, will limit the use of predictive analytics in employment decisions to prevent discrimination.
Additionally, California's AB 1008, effective January 1, 2025, expands the definition of 'personal data' under the California Consumer Privacy Act to include AI systems capable of producing personal information.
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