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California Finalizes AI Regulations For Automated Decision-Making Technology

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As artificial intelligence (AI) continues to transform industries, businesses are increasingly integrating AI tools into their workforce operations. In response, California regulators have been actively working to address the potential legal challenges posed by emerging AI technologies.

On July 24, 2025, the California Privacy Protection Agency (CPPA) finalized regulations under the California Consumer Privacy Act (CCPA) addressing the use of automated decision-making technology (ADMT). These regulations will take effect if approved by the Office of Administrative Law under the Administrative Procedure Act, which provides for a 30-day review process.

What Is ADMT?

Under the regulations, ADMT is broadly defined as any technology that processes personal information to replace or substantially replace human decision-making. In the employment context, this includes:

  • Application screening tools
  • Performance evaluation analytics
  • Productivity monitoring software
  • Any system used to influence employment decisions such as hiring, promotion, discipline, scheduling, compensation, or termination

Importantly, the “substantially replace” standard raises questions about the degree of human involvement required to fall within the definition – questions that may require further regulatory guidance or judicial interpretation. Notably, ADMT does not include tools that simply correct spelling or grammar. The regulations target “significant decisions” such as those affecting employment terms and conditions.

Third Party Vendor Liability

A key takeaway for businesses is that outsourcing ADMT to third-party vendors does not insulate them from liability. Companies remain responsible for third-party oversight, including collaborating with service providers to demonstrate a good faith effort to meet regulatory obligations.

In certain cases, businesses may be required to perform a risk assessment – weighing the privacy risks associated with ADMT against the potential benefits – to determine whether its use is justified.

Notice Requirements for Employers

Employers using ADMT must implement new policies and procedures specifically addressing its use. This includes providing notice to employees, job applicants, and other affected individuals prior to using ADMT. The notice must include:

  • The purpose of the ADMT
  • A description of how the technology works
  • Information on the right to opt out
  • Instructions for accessing relevant data processed by the ADMT
  • An explanation of anti-retaliation rights

Employers currently using ADMT have until January 1, 2027 to comply with the notice requirements.

Looking Ahead: A Dynamic Legal Landscape

AI regulation is rapidly evolving, and compliance cannot be viewed as a one-time exercise. Businesses should routinely review and update their privacy policies and practices to remain current with legal developments. Engaging experienced legal counsel can help businesses navigate the complexities of AI regulation and mitigate potential liabilities. For more information or to schedule a consultation, please contact Linda Wang or your preferred CDF attorney.

To learn more about the emerging AI regulations and privacy laws that are shaping workplace compliance and litigation risks, join CDF’s Privacy and AI Practice Group leaders for a timely webinar on “AI, Algorithms & Employer Protection — What You Need to Know” scheduled for August 20. Click HERE to register.



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Duke AI program emphasizes critical thinking for job security :: WRAL.com

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Duke’s AI program is spearheaded by a professor who is not just teaching, he also built his own AI model. 

Professor Jon Reifschneider says we’ve already entered a new era of teaching and learning across disciplines.

He says, “We have folks that go into healthcare after they graduate, go into finance, energy, education, etc. We want them to bring with them a set of skills and knowledge in AI, so that they can figure out: ‘How can I go solve problems in my field using AI?'”

He wants his students to become literate in AI, which is a challenge in a field he describes as a moving target. 

“I think for most people, AI is kind of a mysterious black box that can do somewhat magical things, and I think that’s very risky to think that way, because you don’t develop an appreciation of when you should use it and when you shouldn’t use it,” Reifschneider told WRAL News.

Student Harshitha Rasamsetty said she is learning the strengths and shortcomings of AI.

“We always look at the biases and privacy concerns and always consider the user,” she said.

The students in Duke’s engineering master’s programs come from all backgrounds, countries, even ages. Jared Bailey paused his insurance career in Florida to get a handle on the AI being deployed company-wide. 

He was already using AI tools when he wondered, “What if I could crack them open and adjust them myself and make them better?”

John Ernest studied engineering in undergrad, but sought job security in AI.

“I hear news every day that AI is replacing this job, AI is replacing that job,” he said. “I came to a conclusion that I should be a part of a person building AI, not be a part of a person getting replaced by AI.”

Reifschneider thinks warnings about AI taking jobs are overblown. 

In fact, he wants his students to come away understanding that humans have a quality AI can’t replace. That’s critical thinking. 

Reifschneider says AI “still relies on humans to guide it in the right direction, to give it the right prompts, to ask the right questions, to give it the right instructions.”

“If you can’t think, well, AI can’t take you very far,” Bailey said. “It’s a car with no gas.”

Reifschneider told WRAL that he thinks children as young as elementary school students should begin learning how to use AI, when it’s appropriate to do so, and how to use it safely.

WRAL News went inside Wake County schools to see how it is being used and what safeguards the district is using to protect students. Watch that story Wednesday on WRAL News.



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WA state schools superintendent seeks $10M for AI in classrooms

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This article originally appeared on TVW News.

Washington’s top K-12 official is asking lawmakers to bankroll a statewide push to bring artificial intelligence tools and training into classrooms in 2026, even as new test data show slow, uneven academic recovery and persistent achievement gaps.

Superintendent of Public Instruction Chris Reykdal told TVW’s Inside Olympia that he will request about $10 million in the upcoming supplemental budget for a statewide pilot program to purchase AI tutoring tools — beginning with math — and fund teacher training. He urged legislators to protect education from cuts, make structural changes to the tax code and act boldly rather than leaving local districts to fend for themselves. “If you’re not willing to make those changes, don’t take it out on kids,” Reykdal said.

The funding push comes as new Smarter Balanced assessment results show gradual improvement but highlight persistent inequities. State test scores have ticked upward, and student progress rates between grades are now mirroring pre-pandemic trends. Still, higher-poverty communities are not improving as quickly as more affluent peers. About 57% of eighth graders met foundational math progress benchmarks — better than most states, Reykdal noted, but still leaving four in 10 students short of university-ready standards by 10th grade.

Reykdal cautioned against reading too much into a single exam, emphasizing that Washington consistently ranks near the top among peer states. He argued that overall college-going rates among public school students show they are more prepared than the test suggests. “Don’t grade the workload — grade the thinking,” he said.

Artificial intelligence, Reykdal said, has moved beyond the margins and into the mainstream of daily teaching and learning: “AI is in the middle of everything, because students are making it in a big way. Teachers are doing it. We’re doing it in our everyday lives.”

OSPI has issued human-centered AI guidance and directed districts to update technology policies, clarifying how AI can be used responsibly and what constitutes academic dishonesty. Reykdal warned against long-term contracts with unproven vendors, but said larger platforms with stronger privacy practices will likely endure. He framed AI as a tool for expanding customized learning and preparing students for the labor market, while acknowledging the need to teach ethical use.

Reykdal pressed lawmakers to think more like executives anticipating global competition rather than waiting for perfect solutions. “If you wait until it’s perfect, it will be a decade from now, and the inequalities will be massive,” he said.

With test scores climbing slowly and AI transforming classrooms, Reykdal said the Legislature’s next steps will be decisive in shaping whether Washington narrows achievement gaps — or lets them widen.

TVW News originally published this article on Sept. 11, 2025.


Paul W. Taylor is programming and external media manager at TVW News in Olympia.



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AI Leapfrogs, Not Incremental Upgrades, Are New Back-Office Approach – PYMNTS.com

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AI Leapfrogs, Not Incremental Upgrades, Are New Back-Office Approach  PYMNTS.com



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