California Releases Updated Draft Regulations On Artificial Intelligence (AI) And Automated Decision-Making Technology (ADMT)

On February 23, 2024, the California Privacy Protection Agency (CPPA) released updated draft regulations on the use of AI and ADMT. The key changes include:

1. New and updated definitions,
2. Increased scope for activities requiring opt-outs and risk assessments,
3. Added obligations for companies that are using physical or biological identification or profiling, and
4. An option for businesses to offer human review in lieu of an opt-out of ADMT.

The CPPA narrowed the definition of what would be considered ADMT. Clarifying that it would only apply to automated technologies that execute a decision, replace human decision-making, or substantially facilitate human decision-making. They also specified what would not be considered ADMT, including web hosting, domain registration, networking, robocall filtering, firewalls, etc.¹