California AI Regulations Current Status 2026: Every Law Your Business Needs to Know

California AI regulations current status in 2026: no state has moved faster or more aggressively on AI regulation than California. The governor signed dozens of AI-related bills in 2024 alone, and more took effect January 1, 2026. For any company with California users, employees, or operations, the result is a layered set of legal obligations that intersect with existing privacy law under the CCPA. California has enacted more than 140 AI-related measures since 2022; this guide covers the laws most likely to affect enterprise operations.

AI Training Data Transparency: AB 2013 (Effective January 1, 2026)

Assembly Bill 2013, the Generative AI Training Data Transparency Act, requires developers of generative AI systems intended for public use in California to publish a high-level summary of their training data on their website. It covers systems first released or substantially updated on or after January 1, 2022, and made available to Californians, whether free or for a fee.

Who Is Covered

Any individual or organization that designs, codes, produces, or substantially modifies a generative AI system made available to Californians. Pure users of third-party AI tools are not developers under this definition and are not directly covered.

Required Disclosures

• Sources and owners of training datasets
• Data volume (ranges or estimates are acceptable)
• Data types and collection and processing methods
• Intellectual property status (whether copyrighted, trademarked, patented, or public domain materials were used, with licensing details)
• Whether datasets were purchased or licensed
• Whether datasets contain personal information as defined by the CCPA
• Whether AI-generated (synthetic) data was used in training

AB 2013 does not prescribe a format, specify an enforcement agency, or address trade secret conflicts. Enforcement guidance is still developing. Track developments on our AB 2013 law page.

Healthcare AI: SB 1120 (Effective January 1, 2025)

Senate Bill 1120, the "Physicians Make Decisions Act," restricts health care service plans (HCSPs) and disability insurers from using AI and automated decision-making tools to deny, delay, or modify health care services based solely on an algorithmic medical necessity determination. A licensed healthcare professional must make every such individual determination, based on the specific member's clinical data. Plans may still use AI to assist utilization review; the AI just cannot be the final decision-maker on medical necessity denials. See our AI in healthcare compliance guide.

Generative AI Disclosure in Healthcare: AB 3030 (Effective January 1, 2025)

Assembly Bill 3030 requires licensed health care providers to disclose when generative AI was used to create written or verbal communications with patients. Exceptions apply when the AI content was substantially modified by a licensed professional before delivery, or when the communication is purely administrative (scheduling, billing, appointment reminders).

Companion AI Chatbot Disclosure: AB 2905

Assembly Bill 2905 requires operators of AI companion chatbot services to clearly disclose at the start of each session that users are interacting with AI, not a human; to provide disclosures at defined intervals; and to implement safeguards for users who may be minors or who exhibit signs of emotional distress. This law directly affects mental health apps, eldercare technology, and social AI platforms. See our AI disclosure requirements tracker for related laws in other states.

Algorithmic Pricing: AB 325 and SB 763 (Effective January 1, 2026)

AB 325 amends the Cartwright Act to prohibit using or distributing a common pricing algorithm—any software used by two or more persons that uses competitor data to recommend or influence prices—in anticompetitive agreements, and creates liability for coercing others to adopt algorithm-recommended prices. There is no exception for algorithms that use only publicly available competitor data. The definition of "price" expressly includes employee and independent contractor compensation, a significant expansion of scope.

SB 763 raised Cartwright Act criminal penalties for corporations to $6 million per violation (criminal, corporate) (up from $1 million) and created new civil penalties of up to $1 million per violation. These penalties apply to all Cartwright Act violations, not just algorithmic pricing cases. AB 325 also lowers the pleading standard for California antitrust claims, making it easier for plaintiffs to survive early dismissal. See our algorithmic pricing laws guide.

Deepfake and Synthetic Media Laws

See our full deepfake laws by state tracker for current status and pending litigation. For a detailed walkthrough of SB 942 and AB 853, see our California AI Transparency Act (SB 942) compliance guide.

CCPA Amendments Affecting AI

• SB 243 (effective Jan 1, 2025): Adds neural data—information generated by measuring brain or other nervous system activity—to the CCPA's list of sensitive personal information, triggering consumer opt-out rights and heightened protections.
• CPPA Automated Decision-Making (ADMT) Regulations (pending): Draft rules would require businesses to provide opt-out rights for certain AI-driven decisions and conduct cybersecurity audits. Final rules were pending as of this writing.

Compliance Priorities by Company Type

For a complete index of California AI legislation, visit our California AI laws page.

Pending Bills to Watch

• AB 2071 — Digital Wellness Education Act (2026): Would require California middle and high schools to include digital wellness instruction — covering AI literacy, screen-time habits, and critical evaluation of digital content — in health education courses. Currently in the Assembly Appropriations Committee. Read our AB 2071 explainer →

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.