Zooming in on AI: California’s Evolving AI Legal Landscape Entering 2026
As the year 2026 unfolds, California stands at the forefront of significant legislative advancements in the realm of artificial intelligence (AI). The previous year, 2025, witnessed rapid technological progress alongside pivotal legal developments, particularly in California, which has emerged as a leader in enacting AI-focused legislation.
Recent Legislative Developments
As of January 1, 2026, California has implemented a suite of AI-related laws aimed at regulating various aspects of AI technology. Notably, the federal government has also sought to establish a national framework for AI regulation. This effort was signaled by the Executive Order titled “Ensuring a National Policy Framework for Artificial Intelligence,” issued on December 11, 2025. While this order does not supersede state laws, it marks a significant shift towards federal oversight of AI.
California’s Newly Enacted Laws
Transparency in AI
SB 53: Transparency in Frontier Artificial Intelligence Act
Signed into law on September 29, 2025, this act mandates that large frontier AI developers—those with annual gross revenues exceeding USD 500 million—publish a framework detailing their approach to managing catastrophic risks associated with their AI models. Such risks include potential harm to human life or extensive property damage.
AB 853: California AI Transparency Act
Enacted on October 13, 2025, AB 853 expands the requirements of Senate Bill 942, delaying its effective date until August 2, 2026. It introduces new transparency measures for AI systems that generate synthetic content, including the need for tools to detect AI-generated materials.
Healthcare Regulations
AB 489: Health Care Professions; Deceptive Terms or Letters; Artificial Intelligence
This law, effective January 1, 2026, seeks to prevent misleading representations by AI technologies in healthcare by prohibiting the use of terms that imply human oversight where none exists. Violations can lead to significant liabilities for AI developers.
Data Broker Regulations
SB 361: Data Brokers; Data Collection and Deletion
Effective January 1, 2026, this law requires data brokers to register with the California Privacy Protection Agency and disclose the types of personal data they collect. By January 1, 2028, they must also undergo regular audits to ensure compliance.
Consumer Protection
AB 325: Cartwright Act; Violations
This law prohibits the use of common pricing algorithms that could restrict product availability, aiming to enhance consumer protection and competition.
Companion Chatbots
SB 243: Companion Chatbots
Effective January 1, 2026, this legislation mandates that operators of companion chatbot platforms disclose interactions as AI to prevent misleading human-like interactions, particularly for minors. It also requires protocols to prevent harmful content.
Deepfake Regulations
AB 621: Deepfake Pornography
This law provides strong protections against unauthorized digital depictions of individuals, allowing victims to pursue significant damages for violations.
Vetoed Legislation and Future Considerations
Several significant bills were vetoed by Governor Newsom, including SB 771, which aimed to hold social media platforms accountable for algorithmic violations of civil rights, and SB 7, which sought to regulate automated decision systems in employment. These vetoes indicate a cautious approach to regulating AI while balancing innovation and accountability.
Conclusion
As we progress through 2026, the legal landscape surrounding AI in California will continue to evolve, with ongoing discussions about the balance between innovation and regulation. The state’s proactive stance on AI legislation reflects its commitment to shaping a responsible and transparent AI future.
