US-CA

California Privacy Rights Act (CPRA) — AI Provisions: AI Compliance Requirements

The CPRA expanded CCPA to cover automated decision-making technology (ADMT). Businesses using AI in significant decisions about California residents must provide opt-out rights, conduct risk assessments, and disclose ADMT use. The CPRA AI regulations are enforced as of 2024.

Key Facts

Effective Date

January 1, 2023

Maximum Penalty

$7,500 per intentional violation

What Your Business Must Do

3 compliance requirements identified. Critical requirements carry the highest risk of enforcement action.

Automated Decision-Making Disclosure

Critical

Disclose when automated decision-making technology is used in significant decisions about California residents.

AI Opt-Out Mechanism

High Priority

Provide California residents the right to opt out of automated decision-making and request human review.

Privacy Policy — AI Section

High Priority

Update your privacy policy to describe all automated decision-making and profiling practices.

Frequently Asked Questions

Does California Privacy Rights Act (CPRA) — AI Provisions apply to my business?

The CPRA expanded CCPA to cover automated decision-making technology (ADMT). Businesses using AI in significant decisions about California residents must provide opt-out rights, conduct risk assessments, and disclose ADMT use. The CPRA AI regulations. Use ComplianceIQ's free scanner to get a personalized assessment in under 5 minutes.

What is the penalty for non-compliance?

The maximum penalty under California Privacy Rights Act (CPRA) — AI Provisions is: $7,500 per intentional violation. Fines are typically scaled by company size, severity of violation, and whether violations were willful or accidental.

How do I comply with California Privacy Rights Act (CPRA) — AI Provisions?

The 3 requirements above cover the core obligations. The fastest path to compliance is: (1) conduct an AI risk assessment, (2) document your AI systems, (3) implement transparency disclosures where required. ComplianceIQ generates all required documents automatically.

Official Source

https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB32

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