Evaluating Calif. Governor Newsom’s Actions on AI Legislation

California Gov. Gavin Newsom’s approach to artificial intelligence legislation reveals a strategic focus on balancing innovation with oversight. He has vetoed some bills such as Senate Bill 1047, which proposed establishing strict safety standards and an oversight framework for advanced AI models, but he has approved others that target the integration of AI within specific business practices. For instance, AB 2602 and AB 1836 were signed into law to safeguard personal digital likenesses, reflecting a commitment to individual privacy in the face of advancing technology. Additionally, AB 1008, which clarifies AI-driven personal data management under the California Consumer Privacy Act (CCPA), was enacted to address concerns related to data transparency and consumer rights. Furthermore, the enactment of AB 2885 establishes a uniform definition of AI in California, which will provide much-needed clarity and consistency for employers and legislators alike. These actions underscore a nuanced regulatory environment aimed at ensuring AI advancement does not occur at the expense of personal privacy and anti-discrimination laws while allowing space for responsible technological growth.

The rapid evolution of AI presents both incredible opportunities and potential challenges for California. We encourage lawmakers to collaborate with multiple stakeholders to advance policies that support workplace and workforce innovation while implementing a balanced approach that safeguards job candidates’ and employees’ rights while enabling businesses to use tools that lead to better workforce decisions. SHRM is committed to being a valuable resource and trusted partner for policymakers, working together to achieve the responsible deployment of AI in the workplace.

Three Key Policy Updates

SB 1047: Safe and Secure AI Models Act

• Status: Vetoed.
• Impact: Focused on regulating AI developers, not employers. However, future legislation could introduce similar safety and audit requirements for businesses that utilize AI systems.

AB 2930: Automated Decision Tools

• Status: Failed to pass.
• Impact: Would have required businesses to perform risk assessments and disclose when AI is used in decisions impacting employees (e.g., hiring). Its failure eases compliance burdens for now, but similar legislation could reappear in 2025. The current form of AB 2930 would have chilled the ongoing use and adoption of AI in California and made it more difficult for California businesses to remain competitive in the global marketplace. It would also have conflicted with the concepts asserted by the U.S. Department of Labor’s interpreting requirements under federal nondiscrimination laws. This legislation also would have failed to provide adequate protections for California workers while simultaneously burdening California businesses with confusing and inconsistent obligations.

California Civil Rights Council’s AI Regulations

• Status: Proposed regulations to prevent AI-driven discrimination in employment.
• Impact: Potential legal exposure if AI systems aren’t compliant. Businesses may face higher litigation risks related to biased decision-making by AI. SHRM urges the council to balance preventing algorithmic discrimination with enabling responsible AI use. SHRM is in favor of regulations and guidelines that support, rather than stifle, workplace and workforce innovation. We believe the key is to implement a balanced approach that safeguards job candidates and employees’ rights while enabling businesses to use tools that will lead to better workforce decisions.

Additional AI legislation that HR and business leaders should know about include:

• AB 2602 and AB 1836: Limit the use of digital replicas without consent, affecting media and other industries using AI-generated images.
• AB 1008: AI systems managing personal data must comply with California Consumer Privacy Act.
• AB 2013: Requires AI developers to disclose the data used to train their models.
• AB 2885: Establishes a uniform definition for AI in California law.

CEOs and CHROs should remain vigilant as AI regulation evolves, particularly regarding how it may impact HR and decision-making processes. It’s crucial to prepare for upcoming compliance requirements such as audits and transparency in AI systems and to proactively review AI tools for potential biases and privacy concerns. By doing so, businesses can mitigate legal risks while continuing to harness the benefits of AI for growth and operational efficiency.

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Emily M. Dickens is the chief of staff and head of government affairs at SHRM.