California Attorney General's Legal Advisory on the Application of Existing California Law to Artificial Intelligence in Healthcare (January 13, 2025)

Summary

The California Attorney General's second advisory of January 13, 2025, addresses health-care providers, insurers, vendors, investors and other health-care entities that develop, sell or use AI and other automated decision systems. It explains their obligations under consumer-protection, civil-rights, competition, privacy and professional-licensing law. On discrimination, it says the anti-discrimination rules for state-supported programs prohibit disparate-impact discrimination and denial of full and equal access of the kind AI is likely to cause, that a facially neutral model can still have a disparate impact, and that a disparate impact is permissible only if the AI system's use is necessary for a compelling, legitimate and nondiscriminatory purpose supported by non-speculative evidence. It states that the Attorney General's office is investigating potential discrimination by AI and other automated decision-making products used by California health-care entities. It also describes the limits on automated utilization review by health plans and insurers. It is guidance on existing law, not a new rule.

Key dates

1. 2025-01-13 (date of issue)Takes effect
2. October 16, 2026Checked against sources
3. October 21, 2026Checked against sources

Developments are added when the record is reviewed. Next review: January 15, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. the second advisory provides guidance specific to healthcare entities about their obligations under California law

   Supports: Issue and subject

   Attorney General Bonta Issues Legal Advisories on the Application of California Law to AI California Department of Justice, Office of the Attorney General Primary source

2. issues this advisory to provide guidance to healthcare providers, insurers, vendors, investors, and other healthcare entities that develop, sell, and use artificial intelligence (AI) and other automated decision systems

   Supports: Addressees

   These rules prohibit the types of discriminatory practices likely to be caused by AI, including disparate impact discrimination

   Supports: Disparate impact applies to AI

   A disparate impact is permissible only if the covered entity can show that the AI system’s use is necessary for achieving a compelling, legitimate, and nondiscriminatory purpose

   Supports: Justification standard

   the AGO is investigating potential discrimination by AI algorithms and other automated decisionmaking products used by California healthcare entities

   Supports: Investigation stated

   California Attorney General’s Legal Advisory on the Application of Existing California Law to Artificial Intelligence in Healthcare California Department of Justice, Office of the Attorney General Primary source