California’s Approach to AI and Data Privacy and What You Need to Know
As artificial intelligence (“AI”) continues to gain traction across industries, California has taken significant steps to clarify how its existing laws apply to the use of AI, particularly regarding data privacy. Recently, California Attorney General Rob Bonta issued two legal advisories, providing a detailed roadmap for businesses on how to navigate AI technologies within the scope of state law.
The California Consumer Privacy Act ("CCPA") is the cornerstone of the state's AI-related rules, and the state is renowned for its stringent data privacy laws. Under the CCPA, businesses that use AI must be transparent about how personal data is collected, processed, and used. This includes ensuring that individuals are informed about their rights regarding their data, including the right to access, delete, and opt-out of data collection. AI-driven systems must also limit data processing to what is “reasonably necessary and proportionate,” meaning that businesses should avoid collecting excessive amounts of data for AI training or decision-making purposes.
The California Invasion of Privacy Act ("CIPA"), is another important California regulation that companies need to be aware of. CIPA regulates the use of wiretapping and recording technologies, and it could be triggered if AI systems are trained by recording or listening to private electronic communications. Additionally, CIPA applies if AI tools analyze voiceprints or other biometric data to assess the truthfulness of statements without the individual’s knowledge or consent. AI systems that are educated by recording or listening to private electronic conversations may be subject to CIPA, which governs the use of wiretapping and recording technologies.
California’s advisories also highlight the impact of AI in specific sectors like healthcare and education. For instance, the Confidentiality of Medical Information Act (“CMIA”) and the Student Online Personal Information Protection Act (“SOPIPA”) have implications for AI tools used in these industries. SOPIPA, for example, prohibits education tech providers from selling student data, engaging in targeted advertising, or creating student profiles unless explicitly required for school-related purposes. Similarly, CMIA ensures that AI tools in healthcare respect patient privacy and obtain consent before sharing medical information.
Compliance Recommendations for California Businesses.
If your business uses AI in California, here are a few essential steps to ensure compliance:
-
Review your AI-related data collection practices to ensure transparency and that you’re respecting consumers’ rights under the CCPA.
-
Evaluate whether your AI systems involve recording or processing private communications, and ensure compliance with CIPA.
-
Be aware of sector-specific regulations like SOPIPA and CMIA if your AI tools are used in education or healthcare.
-
Regularly audit your AI systems to confirm that they are in line with California’s data privacy and consumer protection laws.
As California leads the way in AI regulation, staying compliant with these laws is vital for businesses aiming to leverage AI without facing legal complications.
© 2025 Cliclaw.com
(Image Credit: iStock Photo)
This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.