California Artificial Intelligence Laws: 4 Takeaways for Boards

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As the use of artificial intelligence for board meetings rises exponentially, so do California laws and regulations aimed at eliminating or minimizing associated risks. For example, using numerous types of artificial intelligence tools might produce negative consequences, especially if they malfunction. These can include:

Misuse of personal data or disclosure of sensitive information
Deception and misinformation
Eroded accountability and transparency
Discrimination and bias
Less confidence in safety and security

The rapidly evolving legal landscape surrounding AI in California (and beyond) requires boards and leadership teams to think strategically about associated risks and compliance obligations. In fact, boards have a fiduciary role in overseeing effective AI governance, ethical use, and risk management.

From customer experience (chatbots, personalization engines) to sales and marketing (predictive analytics, targeting), AI is increasingly integrated into multiple business functions. For this reason, failure to address AI governance exposes the organization to significant legal liabilities, regulatory sanctions, reputational damage, shareholder scrutiny, and more.

California Artificial Intelligence Laws

Several acts have been passed, proposed, or are pending to protect the public from the potential harm of AI tools. Those who need to pay significant attention to these laws include:

Developers of AI systems
Businesses using AI for employment or commercial activities
Health care providers and insurers
California state agencies
The entertainment industry
Online platforms and social media companies

Understanding these laws and the reasons behind the effort to draft AI legislation shows why they’re necessary.

1. California Consumer Privacy Act (CCPA)

Because the digital era has made it easier for businesses to collect, process, and share vast amounts of data — including personal information — the CCPA allows consumers certain rights over their personal information.

Board Takeaway: Any AI system that leverages consumer data must be assessed for privacy compliance and opt-out mechanisms.

2. Automated Decision Systems (ADS) Accountability Act (Pending 2025)

Businesses that use automated decision systems, such as those for loan or tenant evaluation purposes, must conduct regular performance assessments of the system to identify potentially biased outcomes. The ADS would also have to undergo audits by third-party experts.

Board Takeaway: Future AI use may require formal audits, documentation of AI model impacts, and ongoing monitoring for bias — with board-level accountability.

3. California Artificial Intelligence Safety Act (Proposed 2025)

The act mandates that, after deployment, AI safety incidents be reported to the California Attorney General. The Act also includes protections for whistleblower employees who sound an alarm.

Board Takeaway: While targeted at large AI developers, downstream companies using advanced large language models (LLMs) may see indirect compliance obligations.

4. California Workplace Technology Accountability Act (Pending 2025)

This focuses on limiting the types of data being collected about employees and the use of ADS for employment-related decisions.

Board Takeaway: If your business uses AI for workforce management or productivity, this law may impose new transparency, fairness, and disclosure requirements.

Product Overview

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Emerging Board-Level Responsibilities

There are several board-level responsibilities that businesses and organizations must commit to in order to improve their AI compliance posture.

Board Duty	Governance Action Required	Owner
Fiduciary oversight	Ensure AI risks are monitored and assessed regularly	Board of directors supported by CEO and CRO
Policy adoption	Approve an organization-wide AI governance framework	Board of directors; draft led by CLO and CDO
Audit committees	Include AI-related risks in existing enterprise risk assessments	Audit and risk committees supported by internal audit teams, CRO, and legal
Director education	Ensure board members receive AI risk and governance training	Corporate secretary, external AI counsel or advisors
Disclosure review	Review adequacy of AI-related external disclosures and reporting	Board disclosure committee, CFO, and CLO

Introducing OnBoard AI

OnBoard’s comprehensive software solution combines all the artificial intelligence tools for meeting minutes and for performing other key tasks—all from a single hub. Those tools include:

An agenda builder
A digital assistant that takes accurate and detailed notes
A meeting minutes builder
A digital board book
A context-aware assistant that anticipates compliance infractions or underlying problems

OnBoard AI is designed to streamline board governance by offering a complete suite of AI-enabled tools that enhance every phase of the board meeting process. There are several benefits of using our software’s AI-backed features:

Improved Efficiency and Productivity: AI tools handle routine tasks, analyze data, and summarize information, saving users time and allowing them to focus on priorities.
Data-Driven Insights: AI tools process and analyze vast amounts of data to provide insights and identify trends that may go unnoticed by human analysis.
Consistency and Accuracy: AI tools ensure the information presented is accurate and consistent, reducing the risk of human error.
Quick Access to Information: AI tools can quickly retrieve relevant documents and data points, making information more accessible when needed.

This superior artificial intelligence for meetings platform is compliant with SOC 2, ISO 27001, HIPAA, and GDPR standards, ensuring data is handled safely and securely with advanced protections.

Discover the Power of the Most Advanced Boardroom AI

Utilizing powerful artificial intelligence tools for business enables more efficient operations and provides greater cost savings than ever before. However, with that power comes responsibility. The California AI laws offer guidelines that help you make sure your AI systems are safe and secure.

With OnBoard’s AI-generated content for board meetings, we make sure to mitigate any artificial intelligence security risks across all industries. For example, our generative AI systems comply with the HIPAA framework, so health care providers and insurers can be confident in the safety and security of patients’ health information.

OnBoard’s AI platform is thoroughly and routinely audited to make sure it consistently meets HIPAA, SOC 2 Type II, and ISO 27001 security, confidentiality, and privacy standards.

Ready to see how OnBoard’s AI system powers meetings more efficiently than ever before, but with safety and security at the forefront? Schedule your free Trial Request today.

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About The Author

Adam Wire: Adam Wire is a Content Marketing Manager at OnBoard who joined the company in 2021. A Ball State University graduate, Adam worked in various content marketing roles at Angi, USA Football, and Adult & Child Health following a 12-year career in newspapers. His favorite part of the job is problem-solving and helping teammates achieve their goals. He lives in Indianapolis with his wife and two dogs. He’s an avid sports fan and foodie who also enjoys lawn and yard work and running.