New California Regs Will Impact Your AI and Privacy Policies: FAQs on Automated Decision-Making, Risk Assessments, and Cybersecurity Audits
California regulators unanimously approved a sweeping set of regulations on July 24 governing the use of automated decision-making technology (ADMT) and mandating risk assessments and cybersecurity audits for businesses subject to the California Consumer Privacy Act . The regulations will impose significant new obligations on businesses regarding pre-use notices, opt-out rights, annual cybersecurity audits, and detailed risk assessments. The California Privacy Protection Agency (CPPA) must now submit the regulations to the Office of Administrative Law , which has 30 working days to review them for compliance with the Administrative Procedure Act . Approval is expected. We’ll explain the new requirements for covered businesses and provide key action items to help you comply. Automated Decision-Making Technology (ADMT) What is an ADMT? An ADMT is any technology that processes personal information and uses computation to replace or substantially replace human decision m...