California’s Privacy Protection Agency set to regulate AI automation

The Privacy Protection Agency of California (CPPA) is preparing to put restrictions on AI automation. The state privacy regulator published a draft of regulations for how people’s data can be used. The draft is called the “draft automated decisionmaking technology (ADMT).” It defines essential new protections related to businesses’ use of AI technologies. The proposed regulation would implement consumers’ right to opt out of and access information about all business use of ADMT — all provided for by the CCPA. The agency’s findings and feedback about the proposed regulation will be discussed at the December 8, 2023 board meeting. A formal rulemaking session will begin next year.

California’s Privacy Protection Agency takes a page from the European Union’s GDPR regulations.

Taking its approach and inspiration from existing rules in the European Union, the CPPA’s executive director, Ashkan Soltani, said that the draft represents “by far the most comprehensive and detailed set of rules in the ‘AI space.” The GDPR, or General Data Protection Regulation, has given individuals rights over automated decisions.

These rights have a legal, binding, and significant impact on individuals since they were enacted in May 2018. The GDPR is building on its regulations with more specific provisions, making it more challenging for tech giants to get out of the compliance regulations. The California Privacy Protection Agency is looking to emulate the decisions of the European Union.

The Agency will finalize the core restriction next year after a consultation process.

The Agency plans to finalize the core restrictions next year after their consultation process. Some have questioned whether the restrictions will pass all the consultation processes it must pass and actually become a “hard-baked rule.” Significant implications could follow the U.S. adtech giants, like Meta. Meta’s business model hinges on the ability to track and profile users and target them with ads.

The new CA rulings could circumvent this action as illegal if California signs the ruling into law. This means that companies would have to cease their commercial surveillance if they have not obtained permission from customers who have the ability to opt-out of their data being processed for behavioral advertising.

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