What happened?

On September 5, 2024, the California legislature passed and sent to the governor Bill AB 2013, which aims to enhance transparency regarding the data used to train generative AI systems. The bill is waiting for the governor’s signature.

Quick Summary:

Covered entities must ensure developers post dataset summaries and disclose synthetic data use, verify compliance, and update documentation for AI systems available to Californians. Exceptions include systems for security, aircraft operation, and national defense.

What are the details?

• Requirement for Developers:
  • Developers must post a high-level summary of the datasets used in the development of AI systems or services on their website.
  • Developers must disclose whether the system uses “synthetic data generation.”

• Coverage of CA AB 2013:
  • Applies to developers of generative artificial intelligence systems or services.
  • Includes individuals or entities such as persons, partnerships, state or local government agencies, or corporations that design, code, or produce an AI system or service.
  • Covers developers who make substantial modifications to existing AI systems or services.
  • AI systems or services must be available to Californians, regardless of whether they are free or paid.

• Implementation Timeline:
  • By January 1, 2026, and before each subsequent release, developers must post specified documentation on their website.
  • Applies to generative AI systems or services, or substantial modifications released on or after January 1, 2022.

• Documentation Requirements:
  • Must include a high-level summary of the datasets used in the development of the system or service.

• Exceptions:
  • Systems or services solely for ensuring security and integrity.
  • Operation of aircraft in national airspace.
  • Developed for national security, military, or defense purposes and made available only to a federal entity.

Business Considerations

• Employers should ensure developers post a high-level summary of datasets and disclose synthetic data use on their website, verify compliance with the regulation for all involved in AI development, applicable to systems available to Californians (regardless of whether they are free or paid), unless exempt.
• Employers should include substantial modifications to existing AI systems or services under the same documentation requirements.
• Employers should update documentation before each subsequent release of generative AI systems or services, or substantial modifications.
• Employers should be aware of exceptions, such as systems solely for ensuring security and integrity, operation of aircraft in the national airspace, or those developed for national security, military, or defense purposes made available only to a federal entity.

Source References

• CA AB 2013
• California Greenlights Two Significant AI Bills (Wilmer Cutler Pickering Hale and Dorr LLP)
• CA AB 2013: Generative artificial intelligence: training data transparency
• California Legislature Advances Several AI-Related Bills (Covington & Burling LLP)
• California Privacy and AI Legislation Update: August 12, 2024 (Husch Blackwell LLP.)

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.