California is now setting a new benchmark for responsible AI use. On September 28, 2024, Governor Gavin Newsom signed the Generative AI Accountability Act (SB 896) into law. It is a pivotal moment for how Generative AI (GenAI) will be governed in state agencies. This legislation aims to protect civil liberties, promote equity, and safeguard public trust.
Here’s what this groundbreaking law entails
Transparency in AI Communications: When state agencies use AI-generated content in communications—whether through emails, chatbots, or phone calls—there must be clear disclaimers that inform the public they’re interacting with AI, with easy access to reach a human representative if needed.
Equity and Fairness in AI: The law mandates that AI systems must be fair and inclusive. No one should be discriminated against based on race, gender, religion, or other personal characteristics. The legislation ensures that GenAI systems respect diversity and social justice.
Managing AI Risks to Critical Infrastructure: AI has the power to both enhance and threaten critical infrastructure like utilities and emergency services. To prevent new vulnerabilities, the Office of Emergency Services will conduct annual risk assessments, monitoring potential threats such as cyberattacks and bioterrorism. These findings will be reported yearly to the Legislature.
Workforce Development: To build the future AI workforce, the law pushes for partnerships between the public and private sectors, emphasizing training in AI ethics, privacy, and security. This will ensure that GenAI is developed responsibly, with the right talent in place.
As AI becomes more integrated into public services and critical systems, the need for transparency, fairness, and risk management is crucial. SB 896 is a significant leap forward. It sets a standard for how AI should be used to benefit everyone while protecting civil liberties and promoting trust in these powerful technologies.
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Ajay Mago is a former AmLaw 100 partner, with more than 16 years of experience in technology transactions, including at Jones Day, Mayer Brown, and Duane Morris. Mr. Mago advises on a wide array of sourcing, technology and other commercial transactions and helps companies navigate legal issues raised by data, emerging technologies, and digital transformation, both on the buyer and provider side. He routinely advises clients on IP strategy, management, and monetization arrangements, leveraging his technology background and business experience.
Published October 15, 2024. The law may have changed since. This publication is intended for general education and informational purposes only, and should not be regarded as either legal advice or a legal opinion. You should not act upon or use this publication or any of its contents for any specific situation. Recipients are cautioned to obtain legal advice from their legal counsel with respect to any decision or course of action contemplated in a specific situation. Maxson Mago & Macaulay, LLP and its attorneys provide legal advice only after establishing an attorney-client relationship through a written attorney-client engagement agreement. This publication does not establish an attorney-client relationship with any recipient.
