New California AI Laws Taking Effect in 2026
In 2026, a wide range of California laws regulating the development, marketing, and use of artificial intelligence (AI) will come into effect. These bills impose new requirements on various stakeholders, including generative AI developers, frontier-model companies, and businesses utilizing algorithmic pricing.
Key Components of the New Laws
Below is an overview of the key components from enacted bills AB 316, AB 325, AB 489, AB 621, and AB 2013.
AB 316: Liability for AI-Related Harms
Effective January 1, 2026, AB 316 applies broadly to any civil action where AI involvement is alleged to have caused harm. This bill limits affirmative defenses for civil liability, prohibiting defendants (including developers and users of AI) from using an “autonomous-harm defense”. This ensures that human responsibility remains a key factor in lawsuits involving AI-generated or AI-modified content.
AB 325: Algorithmic Pricing and Antitrust
Also effective January 1, 2026, AB 325 amends the Cartwright Act to prohibit the anticompetitive use of common pricing algorithms. This includes any method that uses competitor data to manipulate prices. The law introduces two categories of liability: (i) the use of a common pricing algorithm as part of a conspiracy to restrain trade, and (ii) coercion to adopt an algorithm-recommended price.
AB 489: Misleading Statements on Health Care Professional Oversight
Effective January 1, 2026, AB 489 prohibits developers from implying that their AI systems are overseen by licensed healthcare professionals unless such oversight exists. This includes misleading titles or terms in advertising and product functionality. Violations may lead to separate offenses, with state licensing boards empowered to investigate and enforce penalties.
AB 621: Expanded Protections Against Digitized Sexually Explicit Deepfakes
Effective January 1, 2026, AB 621 strengthens protections against non-consensual, sexually explicit deepfakes. The law broadens the definition of digitized sexually explicit material, emphasizes that minors cannot consent to its creation, and increases damages for malicious violations. Public prosecutors are granted civil enforcement authority to address these offenses.
AB 2013: Mandatory Dataset Disclosure for Generative AI Developers
Compliance for AB 2013 is required by January 1, 2026. This law mandates that developers of generative AI systems disclose detailed information about the datasets used to train their models on their websites. Concerns regarding intellectual property and potential litigation exposure have been raised by developers regarding these extensive disclosure requirements.
Takeaways to Prepare for Compliance
With multiple California AI-related statutes becoming enforceable in 2026 and beyond, companies should begin assessing the applicability of these laws. Key preparations include:
- Mapping and documenting training datasets to comply with AB 2013.
- Evaluating the use of shared or third-party algorithmic pricing tools under AB 325.
- Reviewing risk exposure related to enabling deepfake pornography under AB 621.
- Considering liability allocation in agreements in light of AB 316’s prohibition on autonomous harm defenses.
- Ensuring AI services do not imply licensed healthcare professional oversight unless such oversight exists to comply with AB 489.
California’s regulatory framework for AI is rapidly evolving. These new statutes are in addition to existing regulations regarding Automated Decision-Making Technology under the California Consumer Privacy Act, set to take effect on January 1, 2026. Early preparation will assist companies in navigating the complex compliance landscape.
