On August 27, 2024, the California state legislature passed Assembly Bill 2013 and sent it to Governor Gavin Newsom for signature. If passed, AB 2013 would require companies that make generative AI systems and services publicly available to Californians to post documentation on their website about the data used to train such AI systems and services. This documentation would need to be posted by January 1, 2026. This blog post briefly summarizes AB 2013 and its potential implications for companies.
AB 2013 applies to “developers” that make generative AI systems or services publicly available to Californians. “Developers” are broadly defined as not only companies that design, code, or produce AI systems and services, but also companies that “substantially modify” an AI system or service for use by members of the public. “Generative artificial intelligence” is AI that can generate content, such as text, images, video, and audio. Generative AI systems or services impacted by AB 2013 could include, for instance, conversational product searches, shopping assistants, chatbot support, and virtual try-on features.
Companies that meet AB 2013’s “developers” definition and make their generative AI system or service available to the public, would be required to post transparency documentation on their website. In terms of timing, transparency documentation must be posted prior to making the generative AI systems or services publicly available, and prior to any substantially modifications to such systems or services (such as retraining, fine-tuning, publishing new versions and releases, or making other updates that materially change functionality or performance). Companies’ transparency documentation must contain, among other information, the following:
• The sources or owners of the dataset(s) used to develop, train, or modify the generative AI system;
• A description of how these datasets further the intended purpose of the system or service;
• A description of the types of “data points” within the datasets;
• Whether the datasets included any data protected by copyright, trademark, or patent, or are entirely in the public domain; and
• Whether the datasets included personal information or aggregate consumer information.
Importantly, these transparency obligations appear to be backwards looking. They would apply not only to generative AI systems deployed after AB 2013 enters into force, but also to any generative AI service that has been made publicly available in California from January 1, 2022, onwards.
AB 2013 does not explicitly include a trade secret exemption, but also does not contain any provision limiting or restricting trade secret protections generally available under California law.
Currently, AB 2013 does not contemplate fines or penalties for non-compliance. However, AB 2013 is one of many proposed AI-specific bills that have been introduced by the California state legislature this year that apply to developers of AI and, if passed, may add to other regulatory obligations AI developers must consider.
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