California Closes Legislative Session With Significant AI And Privacy Developments

The California Legislature passed a significant number of privacy-and AI-related bills during the latest legislative session, which ended August 31, 2026. The measures – which span AI transparency, employment decisions, privacy practices, use of chatbots, health care services, children’s online protections, and more – will have wide-ranging effects on companies doing business in California, if and when they are signed into law by the Governor.

The California Legislature’s 2026 session underscores the state’s continued focus on privacy and AI regulation. The AI package reflects a growing focus on high-impact use cases, including employment decisions and consumer-facing interactions involving chatbots and digital replicas, while reinforcing the importance of human oversight in consequential decision-making. On the privacy front, lawmakers added to the state’s already expansive frameworks. For example, they approved heightened regulation of businesses that sell or share sensitive