AB-1018 Automated decision systems

What happened

AB 1018’s retained proposal would regulate automated systems that profile people to make or facilitate consequential decisions, including health care, insurance, employment and patient financial assistance. Routine filters, calculators and databases are excluded, and a generative AI system is not covered merely because it generates content. The health-sector exclusion covers HIPAA entities doing business in California and business associates’ services to them, but preserves exceptions for employment, patient financial assistance and the pre-decision notice requirement. FDA-regulated devices and specified regulated laboratory, research and production uses have additional exclusions.

For covered uses, developers would provide instructions, fine-tuning information and technical documentation, with a specified financial-services exception. Deployers would provide pre-decision notice and adverse-outcome explanations, subject to medical-emergency and other specified exceptions. Correction and appeal opportunities would apply to deployers with more than 25 employees, with prescribed 30 business-day processes. The proposal also preserves relevant existing-law protections and does not authorize otherwise prohibited discrimination. These conditions make the roles, use and statutory exclusions central to applicability; the proposal does not establish a new duty for every AI deployment.

Why it matters

Organizations need to determine which consequential profiling uses remain covered after the health-sector exclusions and notice carvebacks.

Sources

• AB-1018 Automated decision systems, bill historyOfficial · California Legislature · 2026-08-30 · Source review 2026-09-10
• AB-1018 Automated decision systems, current bill text (08/28/26 - Amended Senate)Official · California Legislature · 2026-08-28 · Source review 2026-09-10