Disruption

Calif. proposes AI regulations for high-stakes decisions

They include choices regarding employment and compensation.
The artificial intelligence company OpenAI logo is seen on a mobile phone in front of a computer screen displaying output from ChatGPT, March 21, 2023, in Boston. (AP Photo/Michael Dwyer, File)

California’s privacy regulator unveiled proposed rules for businesses that deploy artificial intelligence to make high-stakes decisions about consumers, such as employment or compensation.

The draft rules released Monday by the California Privacy Protection Agency would require companies that use automated decision-making technology to notify consumers, provide a “plain language explanation” of how the technology is used, and offer an opt-out option.

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