California’s New AI Rules Risk Stifling Innovation and Creating a ‘Fractured Regulatory Landscape’
ICLE Director of Innovation Policy Kristian Stout was quoted by State Scoop in a story about California’s recently approved privacy regulations for automated decision-making technology.
You can read the full article here.
Kristian Stout, Director of Innovation Policy at the International Center for Law and Economics, a nonprofit research group, said the new rules are overly broad and that their definitions could stifle innovation, particularly for small and medium-sized businesses.
“While the CPPA was reasonable in its interest in looking at these rules in light of new technologies, the core framework remains rigid and risks placing California at a competitive disadvantage in AI leadership,” Stout wrote in an emailed statement. “The compliance burdens, particularly the phased cybersecurity audits and risk assessments, are a substantial cost for businesses of all sizes, and the impact on small businesses and the digital advertising ecosystem remains a valid concern. The CPPA’s rules further divide a fractured regulatory landscape, forcing businesses to navigate complex and potentially contradictory obligations.”