CPPA Proposes Regulated Framework for Automated Decision-Making Technologies

By Published On: December 1, 2023

The California Privacy Protection Agency has prepared draft regulations that would establish crucial protections concerning businesses’ utilization of Automated Decision-Making Technologies (ADMT), according to a Nov. 27 announcement on the CPPA website. These regulations, stemming from the California Consumer Privacy Act (CCPA), allow consumers to opt out of and access information about ADMT usage.

Scheduled for review at the upcoming December 8, 2023 board meeting, these regulations aim to establish consumers’ rights, marking a step towards privacy-oriented innovation amidst the emergence of AI technology.

“These draft regulations support the responsible use of automated decision making while providing appropriate guardrails with respect to privacy, including employees’ and children’s privacy.” Vinhcent Le, a member of the Agency’s Board involved in drafting the regulations, said.

The draft regulations highlight the implementation of new privacy safeguards, aligning with Californians’ mandate from 2020. They propose stipulations for businesses employing ADMT in pivotal areas such as decision-making impacting consumers’ lives, profiling of individuals (employees, applicants, students), monitoring in public spaces, and targeted advertising based on behavioral profiling.

“Automated decision making technologies and artificial intelligence have the potential to transform key aspects of our lives. We’re proud that California is meeting the moment by giving consumers more control over these technologies,” said Ashkan Soltani, Executive Director of the California Privacy Protection Agency.

Key provisions in the draft regulations outline the following:

Pre-Use Notices: Businesses mandated to inform consumers about ADMT utilization beforehand, allowing them to opt out or access further details.

Opt-Out Provision: Consumers empowered to opt out of ADMT usage by businesses, barring specific scenarios involving life and safety.

Access to Information: Consumers entitled to information about how ADMT influenced decisions made by businesses concerning them.

The proposed requirements emphasize a common priority–the right of the individual to protect and exercise their ability to forgo or be clued in on a new decision making process that presents potential pitfalls–or simply may cause unease among Californians. The goal is to ensure that ADMT, inclusive of AI-based systems, adheres to privacy-centric practices and design principles.

About the Author: Will Keys

Will Keys writes about technology issues for the GovReport. He is a graduate of the Reynolds School of Journalism at the University of Nevada, Reno. He can be reached at will at govreport.org