California AI Transparency Act (SB 942)

The california-ai-transparency-act-sb-942 establishes comprehensive transparency requirements for generative-ai systems in California. Enacted by the california-legislature and signed by the Governor on September 19, 2024, the law becomes operative on January 1, 2026.

The Act requires covered-providers - entities operating generative AI systems with over 1 million monthly users that are publicly accessible in California - to implement three core transparency measures:

1. AI Detection Tools: Providers must offer free, publicly accessible ai-detection-tools that allow users to assess whether content was created by their GenAI system and output system-provenance-data while protecting personal information.

2. Manifest Disclosures: Providers must offer users the option to include clear, conspicuous manifest-disclosures in AI-generated content that identify it as artificial.

3. Latent Disclosures: Providers must embed latent-disclosures in all AI-generated content containing technical metadata about the content's provenance, including provider name, system version, creation timestamp, and unique identifiers.

The law includes strict licensing requirements, mandating that providers revoke licenses within 96 hours if third-party licensees disable disclosure capabilities. Violations carry civil penalties of $5,000 per violation per day, enforceable by the Attorney General, city attorneys, or county counsel.

Notably, the Act exempts non-user-generated entertainment content like video games, television, and movies, focusing its requirements on user-accessible generative AI platforms.