Affordability Agenda: Costly Anti-AI Bills Added to List

Five proposals that would overregulate and possibly ban the use of cost-effective, beneficial artificial intelligence tools by California businesses were added this week to CalChamber’s Affordability Agenda, an annual assessment of legislation that could either cut business and consumer costs or accelerate the state’s high cost of living.

Six other bills, covering a variety of topics impacting California businesses, were also added to the Agenda’s Cost Drivers list. When combined with bills identified last month, the list now covers 26 damaging legislative proposals.

No additional bills were added to the Agenda’s Cost Cutters list, bills that would improve the state’s economy.

“These bills take the wrong approach toward the development and use of artificial intelligence,” said CalChamber President and CEO Jennifer Barrera. “They would worsen the state’s affordability crisis, weakening industries that generate billions of dollars in tax revenues for government services.”

AI Bills

The list of AI bills opposed by CalChamber includes Assembly Bill 2027 (Ward; D-San Diego), a proposal that would pose significant barriers to creating or improving workplace technology.

Four other AI-related bills were also added to the list of costly proposals: Senate Bill 951 (Reyes; D-San Bernardino), which would significantly expand staff reduction notices as a result of technology; Assembly Bill 1979 (Bonta; D-Alameda), seeking a ban on AI-related health care tools for activity involving professional judgment; Assembly Bill 2575 (Ortega; D-San Leandro), imposing unworkable disclosure and liability rules on health care-related use of AI technology; and Senate Bill 1011 (McNerney; D-Pleasanton), which would place significant burdens on automated decision systems used by utilities, including those used to provide rapid emergency responses.

Other Bills

Other bills added to the Affordability Agenda’s Cost Drivers list:

• Assembly Bill 1776 (Aguiar Curry; D-Winters): Antitrust law changes leaving businesses vulnerable to new legal liability (see earlier statement).

• Assembly Bill 2021 (Schiavo; D-Chatsworth): Creates a financial incentive for individuals to file claims for violations of the California Consumer Privacy Act.

• Assembly Bill 2034 (Addis; D-Morro Bay): Increases food costs by creating new state-specific regulations regarding food additives.

• Assembly Bill 2095 (Lee; D-San Jose): Makes changes to the Fair Chance Act covering hiring practices, regardless of the facts or circumstances surrounding any prior convictions.

• Assembly Bill 2569 (Hart; D-Santa Barbara): Significantly expands CEQA impact report requirements, increasing costs and exposure to litigation.

• Assembly Bill 2646 (Krell; D-Sacramento): Threatens current wage structure under the federal H-2A agricultural worker program, driving up industry costs.