Relating to establishing a framework to govern the use of artificial intelligence systems in critical decision-making by private companies and ensure consumer protections; authorizing a civil penalty.
Impact
If enacted, SB2966 will amend the Business and Commerce Code by introducing a new chapter that mandates private companies using AI systems for consequential decisions to create and implement a comprehensive framework dedicated to consumer protection. This regulatory measure reflects a proactive approach to address the potential risks associated with AI's capacity to make significant consumer-impacting decisions, thereby contemplating an environment of accountability among businesses adopting these technologies.
Summary
Senate Bill 2966 establishes a regulatory framework governing the use of artificial intelligence (AI) systems utilized in critical decision-making processes by private companies. The bill aims to ensure consumer protection with respect to consequential decisions made by AI systems. This legislation recognizes AI's growing influence across various sectors, compelling companies employing such systems to formalize their operational frameworks under guidelines that safeguard consumer interests.
Contention
While the bill primarily focuses on protecting consumers from adverse impacts resulting from AI decisions, it also introduces a civil penalty for non-compliance, capped at one dollar. This provision raises discussions about the effectiveness and enforceability of such a nominal penalty in encouraging compliance among private entities. Critics may argue that the penalty is insufficient to deter violations and may fail to promote substantial adherence to the framework, while advocates could counter that it symbolizes an initial step towards structured oversight in a rapidly evolving technological landscape.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to state contracts with Chinese companies and investments in Chinese companies and certain companies doing business with China; authorizing a civil penalty.
Relating to an individual's genetic data, including the use of that data by certain genetic testing companies for commercial purposes and the individual's property right in DNA; authorizing a civil penalty.
Relating to measures to ensure the safety and welfare of the border region of this state, including protection from ongoing criminal activity and public health threats and the establishment of the Border Protection Unit; creating a criminal offense; creating a civil penalty.
Relating to measures to ensure the safety and welfare of the southern border region of this state, including protection from ongoing criminal activity and public health threats; creating a criminal offense; creating a civil penalty.
Relating to the capture and use of an individual's biometric identifiers, specimen, or genetic information by a governmental body or peace officer or by a person for commercial purposes; authorizing civil penalties.