At a Glance

• Revisions to Title 2 of the California Code of Regulations will govern the use of AI-based tools in California starting October 1, 2025.
• Among other things, the regulations define the scope of AI-driven (and other) automated decision-making systems (ADS), clarify what constitutes discriminatory use of ADS, require anti-bias testing of ADS, impose new recordkeeping requirements, and discuss affirmative defenses to employer liability.
• The final regulations are less burdensome than the original draft, but still impose several new compliance requirements for employers.

On June 30, 2025, the California Civil Rights Council (“CRC” or “Council”) secured final approval for revisions to Title 2 of the California Code of Regulations, which governs administration of the California Civil Rights Department (CRD). These regulations interpret California’s Fair Employment and Housing Act’s (FEHA) prohibitions against discrimination in recruitment, hiring, promotion, training and termination, specifically inserting requirements and expectations when using “artificial intelligence, machine-learning, algorithms, statistics, and/or other data processing” to facilitate human decision-making. These revisions take effect on October 1, 2025, hence creating some urgent compliance needs for employers using AI-based tools in the Golden State.

In summary, the Regulations:

• define the scope of automated decision-making systems (ADS) and other key terms;
• provide details on the prohibition...

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