UPDATE — JULY 2025: Assembly Bill 2930 (AB 2930) did not become law in 2024. Although it passed the California Assembly and was amended in the Senate, the bill stalled and was withdrawn before the end of session. Lawmakers have signaled plans to reintroduce a revised version in 2025. The article below reflects the final amended version from August 2024, which narrowed the bill’s scope to focus primarily on employment-related automated decision tools.
ORIGINAL NEWS STORY:
California Lawmakers Propose AI Bill to Combat Algorithmic Bias
California legislators are advancing a proposal aimed at regulating the use of artificial intelligence in consequential decision-making. Assembly Bill 2930 (AB 2930), seeks to address the risks of algorithmic discrimination across employment and other high-impact sectors. Introduced on February 15, 2024, the bill targets automated decision tools—AI systems that influence decisions affecting individuals’ lives, such as hiring, housing, credit, and education. The legislation defines algorithmic discrimination as unjustified differential treatment or adverse impacts based on protected characteristics such as race, gender, age, or disability. It emphasizes the need for transparency, fairness, and accountability in how these tools are developed and used.
Annual Impact Assessments
The bill requires developers and deployers of these tools to complete yearly impact assessments. These reports must explain:
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Why the tool exists and how it’s used
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What data it processes
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How its decisions affect people
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What risks it poses based on protected traits
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What safeguards are in place to reduce harm
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How humans oversee or interact with it
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How it has been tested for accuracy and fairness
Deployers must also notify individuals when an automated tool plays a role in a key decision. That notice must include the tool’s purpose, a plain-language description, and contact information. If the tool makes a decision on its own, users must have access to an alternative process when possible.
Governance Programs and Public Policies
Organizations that use or develop these tools must create AI governance programs. These programs must include protections tailored to each tool’s use and the size and resources of the organization.
The bill also requires public transparency. Both developers and deployers must publish policies that explain what tools they use and how they reduce the risk of discrimination. Developers must also give clients clear details about the tool’s purpose, data, limits, and testing.
Penalties and Enforcement
State and local prosecutors can take civil action against violators. Penalties can include up to $25,000 per violation for algorithmic discrimination, plus other legal remedies.
Before filing a lawsuit, prosecutors must give 45 days’ notice. This gives organizations a chance to fix the issue and certify that they’ve addressed it.
Exemptions and Small Business Rules
The bill does not cover cybersecurity tools. It also exempts trade secrets in required assessments from disclosure under the California Public Records Act.
Small businesses are mostly exempt. Organizations with fewer than 25 employees don’t have to meet the bill’s audit and governance rules—unless their tools impacted more than 999 people in the past year.
Need Help?
If you’re concerned about how this bill—or any other AI law—might affect your business, reach out to BABL AI. Their Audit Experts are available to answer your questions, assess risk, and guide your organization toward responsible AI practices.
