California State Assembly
The proposed California Bill AB 331 Automated Decision Tools, intends to regulate the use of AI on consequential decisions, such as employment, along with other non-employment-related determinations. From 1 January, 2025, the bill would mandate AI developers to carry out an impact assessment for any automated decision tool, detailing its purpose, potential negative impacts, and the safeguards installed to mitigate potential algorithmic discrimination risks. The proposed legislation also stipulates that employees be informed when AI is used for decision-making and be provided with an opt-out option. Additionally, the law forbids algorithmic discrimination by software users and sets out provisions for compensatory damages, declaratory relief, and attorney fees and costs for anyone discriminated against due to AI usage. The bill is currently held under submission.