We wanted to remind California employers that, on January 13, 2025, the California Attorney General issued two legal advisories for businesses and healthcare entities regarding their obligations under California law. These advisories provide useful guidance but do not cover all applicable AI development and use laws.

• The first advisory informs consumers and entities about their rights and obligations under California’s consumer protection, civil rights, competition, and data privacy laws.
  • It highlights the benefits and risks of AI in healthcare and outlines legal obligations such as testing, validation, transparency, and avoiding biased decision-making and denial of care.
  • Businesses must ensure compliance, ethical practices, and transparency to mitigate risks and build trust.

• The second advisory provides specific guidance for healthcare entities, emphasizing the need for testing, validation, and transparency in AI systems.
  • It highlights risks like bias, discrimination, and privacy violations and outlines unlawful practices such as false advertising and creating deceptive content.
  • New legislation requires AI developers to disclose training data, mark AI-generated content, and ensure healthcare AI tools are supervised by licensed physicians. Businesses must ensure compliance, ethical practices, and clear communication with consumers to mitigate risks and build trust.

Companies, including healthcare entities, are responsible for complying with new and existing California laws and must take full accountability for their actions, decisions, and products.

Attorney General Bonta outlines existing California laws and explains their applicability to AI technology, emphasizing the duty of entities to ensure compliance with all relevant laws.

For additional information:

• Attorney General Press Release
• Advisory 1: California Attorney General’s Legal Advisory on the Application
• Advisory 2: California Attorney General’s Legal Advisory on the Application

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.