United States of America: Signed California AI Transparency Act (SB 942)

On 19 September 2024, Californian Governor Gavin Newsom signed the California AI Transparency Act (SB 942). The Bill adds new consumer protection measures related to artificial intelligence (AI) under California law, requiring providers of generative AI systems with over 1 million monthly users to offer a free AI detection tool that allows users to verify if the content was AI-generated. This tool must be publicly accessible, support uploads or URLs, and offer metadata related to content authenticity. Furthermore, providers must include hidden (latent) disclosures in AI-generated content to indicate that it was created or altered by AI and give users the option to include an open (manifest) disclosure. The latent disclosures must contain specific information about the provider, the AI system, and the content creation date. If a provider's generative AI system is licensed to third parties, the provider must ensure the system's disclosure capabilities are maintained. Violations incur a USD 5'000 fine per incident, with the Attorney General or local authorities enforcing compliance. The Bill becomes effective on 1 January 2026.