California is taking steps to regulate the use of artificial intelligence (AI) in consequential decision-making, such as employment, to prevent algorithmic discrimination. The California Civil Rights Council has proposed amendments to the Fair Employment and Housing Act (FEHA) targeting employment discrimination caused by automated decision systems. Additionally, the California Legislature is debating AB 2930, a comprehensive measure addressing the use of AI across sectors. These efforts aim to ensure that technological advancements do not perpetuate biases or create new forms of discrimination.

The proposed rules define AI and its scope, apply to organizations employing five or more individuals, impose liabilities on employers, clarify the consideration of criminal history, require record-keeping, and allow for public input. AB 2930 seeks to regulate AI use in various industries and requires impact assessments, notice requirements, governance programs, policy disclosure, and civil liability for violations. The bill is currently under review by the Legislature. Employers should stay informed and assess their compliance with these evolving regulations.