Here We Go. California is protecting you from “Algorithmic discrimination”.

"ADTs (Automated Decision Tools) are making impactful decisions now,” said Assemblymember Bauer-Kahan.

Greg's Words

Hold the phone.  "Full Stop"(I hate that phrase). Pump the breaks.  The Assemblymember is referring to artificial Intelligence tools and is worried that these tools will produce outcomes that are "...equitable for all.”

This is one reason why I am calling for AI Anαrchy

Who are the arbitrators of 'equitable'?  Hiding behind the therory of AI bias, or what the bill calls, "Algorithmic discrimination", these lawmakers are actually forcing a bias that may not have been in existence in the first place.

This is just the beginning. AI is evolving by the hour and it doesn't care about legislation.  What is important, and has always been central to technological advances, is how we humans utilize this new tool.

It is up to us and history tells a story - from Fire to Nukes.  Time will tell.

Check out this quick summary of the Bloomberg story.

Key highlights:

• California introduces a sweeping bill to monitor AI usage by employers and industries.
• The legislation targets discrimination in various sectors, including employment, education, and healthcare.
• Businesses are concerned about potential compliance issues and financial penalties, fearing a chilling effect on innovation.

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California is stepping up its game in the world of artificial intelligence (AI) regulation. Lawmakers are pushing a comprehensive bill to oversee how businesses use AI and automated decision-making tools in various sectors. The legislation, sponsored by Assemblymember Rebecca Bauer-Kahan (D), is the only AI-related proposal in the California state legislature and one of the few nationwide measures that would impose assessment requirements on the private sector's use of AI software.

Federal action on AI regulation has been slow, prompting states like California to step in with their proposals. Most of these measures focus on exploring the topic or regulating AI use in government. However, the Bauer-Kahan legislation stands out for its far-reaching implications, targeting discrimination from AI software in employment, education, housing, utilities, healthcare, financial services, and more.

"Fifty percent of companies are now using these automated decision tools to make consequential decisions. This is happening today in many sectors that affect people's lives, and so we need to move forward," said Bauer-Kahan. "We're not ahead of the ball. We're already behind the ball."

The bill requires AI developers and users to submit annual impact assessments to the California Civil Rights Department by 2025. This approach, which splits the responsibilities between developers and users, is a first in the nation. The assessments would cover the usage of automated decision tools, data collection, safeguards, potential adverse impacts, and evaluation. Additionally, companies would need to implement a governance program to put these safeguards into practice.

Businesses have expressed concerns about the legislation's potentially unclear terms and the burden of assessments on small businesses. They also worry about financial penalties that could stifle innovation in the AI space. Under the bill, the state Civil Rights Department can impose a $10,000 fine each day an impact assessment is not submitted. Furthermore, the private right of action provision would allow state residents to bring suit, a feature not included in any other AI proposals.

Despite business opposition, California is determined to lead the way in AI regulation as technology continues to evolve. Assemblymember Josh Lowenthal (D) commented, "It's never going to be perfect. Like let's make sure that we're clear about that. This is going to be a work in progress forever. It will never, ever, ever be completely perfected."

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Reference:  "California Seeks to Be First to Regulate Business Use of AI" - Titus Wu, Bloomberg Law, 4/19/2023

Tweet: California leads the charge in AI regulation, introducing a comprehensive bill to monitor AI usage in businesses across various sectors. 🤖📜 #AI #regulation #California

LinkedIn introduction: California is stepping up in the world of AI regulation with a comprehensive bill targeting AI usage in businesses across various sectors. As technology continues to evolve, will this pioneering approach become a model for other states and countries? Find out more in our latest article.

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Search question: How is California aiming to lead the way in AI regulation for businesses?

Real song suggestion: "Welcome to the Future" by Brad Paisley