Artificial Intelligence (AI) has rapidly emerged as a transformative force across various industries, revolutionizing the way we work and live. As we have previously written about here, AI has huge potential benefits for employers. However, as the technology continues to advance, its impact on the workforce raises important questions about discrimination, privacy, and accountability. Acknowledging the significance of these concerns, the state of California, as well as the federal government, has started to consider what potential regulations would need to look like to effectively govern the use of AI by employers. Here are five issues California employers need to understand about the proposed regulations as well as the existing laws that already govern an employer’s use of AI:

1. California proposed legislation to regulate employers’ use of AI.

AB 331 is a proposed California bill to regulate employers’ use of AI in making employment decisions (among other non-employment determinations as well). The bill would require a developer of the AI to perform an impact assessment for any automated decision tool that would set forth the purpose of the tool, potential adverse impacts from the deployer’s use of the tool, and the safeguards implemented to address “reasonable foreseeable risks of algorithmic discrimination” from the use of the tool. The proposed law also would require notification to the employee that the AI is used to make the decision and provide the employee an...

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