Artificial intelligence is changing how businesses operate, but it is also creating new legal issues. California lawmakers are examining how AI and automation may affect employees, layoffs, privacy, and workplace rights. Governor Gavin Newsom has directed state agencies to study how existing employment laws, including Cal-WARN, may need to change as businesses increasingly use AI and automated technology. Proposed legislation could also create additional requirements for companies when technology contributes to large-scale layoffs.
California businesses must also pay attention to new rules involving AI-generated content. The state is increasing transparency requirements for certain AI-generated images, videos, and audio. Companies that use AI for advertising, marketing, or customer communications may need to make sure they are following these requirements. Businesses should also review how employees use AI and whether their use of AI creates privacy, intellectual-property, or consumer-protection concerns.
For business attorneys, AI is becoming an important legal issue involving employment law, contracts, privacy, intellectual property, and regulatory compliance. Companies that use AI should review their policies, contracts, and workplace practices to reduce potential legal risks. As California continues to develop AI regulations, businesses will need to stay informed and work with legal professionals to make sure their use of AI complies with changing laws.
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