| Update Applicable to: | Effective date |
| All employers in California | See details below |
What happened?
On August 31, 2024, the California Assembly ordered to inactive file AB 2930, which would require businesses to perform risk assessments and disclose when AI is used in decisions impacting employees.
Quick Summary:
- AB 2930, which aimed at regulating automated decision systems to prevent algorithmic discrimination, failed to pass in the California Legislature due to legislative inactivity, scope reduction, and controversy over its requirements. The bill was ultimately moved to the inactive file in the Senate.
What are the details?
- AB 2930, known as “Automated Decision Tools,” was a bill aimed at regulating the use of artificial intelligence (AI) in high-risk processing activities, particularly in employment-related decisions.
- Initially similar to the Colorado AI Act, it was later narrowed in scope.
- The bill required businesses to perform risk assessments, disclose AI usage in employee-related decisions, and establish governance programs to prevent algorithmic discrimination.
- Despite its potential to protect workers, the bill failed to pass after being moved to the Senate’s inactive file.
Business Considerations
- For now, employers that are using an ADT do not have to modify their practices. However, employers should consider taking steps to mitigate the risk of algorithmic discrimination if they are using an ADT. Taking a proactive approach can prevent many issues and alleviate potential stress.
Source References
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