California’s Civil Rights Council has revised proposed regulations governing the use of automated-decision systems. A proposed bill, AB 331, would impose obligations on employers to evaluate the impact of an automated decision tool (ADT), prohibit use of an ADT that would contribute to algorithmic discrimination, add a new notice requirement, and create a governance program. A separate bill, SB 721, would create a temporary Working Group to deliver a report to the legislature regarding artificial intelligence.

California continues to take steps to regulate the burgeoning use of artificial intelligence, machine learning, and other data-driven statistical processes in making consequential decisions, including those related to employment. The California Civil Rights Council (CRC)¹ recently issued updated proposed regulations governing automated-decision systems. The agency had issued a working draft in March 2022. In addition to these regulatory efforts, California lawmakers have introduced two bills designed to further regulate AI in employment. California’s efforts at oversight now consist of the following:

• The CRC’s Proposed Modifications to Employment Regulations Regarding Automated-Decision Systems;
• Assembly Bill No. 331, to add Chapter 25 (commencing with Section 22756) to Division 8 of the Business and Professions Code, relating to artificial intelligence; and
• Senate Bill No. 721, “California Interagency AI Working Group,” to add and repeal Section 11546.47 of...

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