CCPA and AI: What California’s New Rules Mean for Your Business
California’s CCPA now includes specific regulations for Automated Decision-Making Technology (ADMT). If your AI tools affect California residents, these rules apply to you.
What qualifies as ADMT
Any technology that processes personal information to make or assist with decisions replacing human decision-making. This includes AI chatbots, recommendation engines, dynamic pricing, and automated customer service.
New requirements
Pre-use notices before deploying ADMT. Consumer opt-out rights. Access to information about how the system works. Right to human review of significant decisions.
Who it affects
Any business that serves California residents and meets CCPA thresholds: annual gross revenue over $25 million, buys/sells data of 100,000+ consumers, or derives 50%+ revenue from selling personal information.