California's New Draft Regulations On AI: What You Should Know

This week, the California Privacy Protection Agency (CPPA) released preliminary draft regulations on automated decisionmaking technology ( or "ADMT") that would require disclosures and associated opt-out and access rights related to businesses' use of artificial intelligence (AI) and AI-adjacent technologies. The draft regulations are far from final: Released in advance of the CPPA's December 8, 2023 board meeting, the draft is expressly intended to facilitate Board discussion and public participation before the formal rulemaking process begins.

The draft signifies a major step forward in the significant efforts by federal, state and international governments to begin to regulate uses of AI by balancing consumer protection with the technology's vast promise. For example, European regulators have been working for most of the year to negotiate and potentially finalize its sweeping Artificial Intelligence Act ("AI Act"), though that process will now extend into 2024.