Hey there! I have some exciting news to share with you. California is setting out to "Regul-AI-te" - that is, regulate AI. The state is working on a new AI regulation bill called AB 331, which is currently going through committees in the California legislature.

Here are the key points of the bill:

Firstly, the regulation will apply to businesses with 25 or more employees, unless the tool impacts at least 1,000 people per year.

Secondly, starting from January 1, 2025, instead of relying on an independent third-party audit, developers and users of the tool would each need to submit annual impact assessments to the California Civil Rights Department. These assessments would need to include how an automated decision tool is being used, what data is being collected, the purpose, what safeguards are in place, what potential adverse impacts may result, how the tool bill be used by people and how the tool was evaluated. A new assessment needs to be made each time there is a significant update.

Thirdly, companies will need to implement a governance program that contains reasonable administrative and technical safeguards to map, measure, manage, and govern the reasonably foreseeable risks of algorithmic discrimination associated with the use or intended use of an automated decision tool.

Fourthly, companies will need to write a publicly available policy listing the types of automated tools used and how the company manages the risk of illegal discrimination.

Fifthly, if a "consequential" decision is made solely based on AI, an affected individual would have a right to opt out if the request was “technically feasible.”

Lastly, the bill prohibits the use of AI in a manner that contributes to algorithmic discrimination.

There are some remedies outlined in the bill as well. The Civil Rights Department can impose a $10,000 fine each day an impact assessment is not submitted. There is also a privacy right of action, which starts from January 1, 2026. Furthermore, there is potential for an injunction under violation, which must be corrected within 45 days.

Overall, this is an exciting step towards regulating the use of AI in California. The bill aims to provide more transparency and accountability when it comes to the use of automated decision tools, while also ensuring that individuals are not subject to discrimination.