California AI bills advance as Congress considers state-level regulation ban

California's Senate passed two bills this week aimed at regulating artificial intelligence, authored by Sen. Steve Padilla (D-San Diego). The first, SB 243, addresses the marketing of chatbots, prohibiting addictive engagement practices and requiring notifications that users are interacting with a bot, not a human. The second, SB 420, aims to create a regulatory framework for AI systems, mandating that individuals be notified when automated systems make decisions about them and allowing for appeals to human review. Padilla condemned a federal moratorium proposed by House Republicans that would prevent states from regulating AI for a decade, emphasizing the need for accountability and oversight in the tech industry.

Both bills are set to move to the Assembly for further consideration before potentially reaching the governor's desk. This legislative effort highlights California's leadership in tech regulation, as states across the country work on AI safeguards while Congress remains stalled. In March, a working group appointed by Gov. Gavin Newsom provided guidance for regulating AI, emphasizing the balance between innovation and necessary safeguards. As 260 state lawmakers from all 50 states urged Congress to oppose the moratorium, the outcome of these bills could significantly impact California's AI regulatory landscape.