California AI Regulations Pose New Challenges for Entertainment Industry

Why it matters: California is taking steps to regulate the use of artificial intelligence, which has become increasingly prevalent in the media/entertainment industry. AI is being used in everything from chatbots for customer service to hiring processes, and while it can offer benefits, it can also lead to discrimination and bias. The proposed regulations would ban the use of AI for certain characteristics like age or race and require businesses to be liable for the use of AI by third-party vendors.

What you need to know: The regulations are still in the early stages, but they could have significant implications for the media/entertainment industry. Board members should be aware of the potential compliance concerns, such as vendors not wanting to turn over proprietary software, and the need for more guidance on what constitutes algorithmic bias. Additionally, board members should pay attention to the proposed Office of Artificial Intelligence and potential legislation that could provide guidelines for the private sector.

What’s next: Board members should stay informed about the progress of these regulations and legislation, as well as any developments in the use of AI in the industry. They should consider how their own companies use AI and take steps to ensure compliance with any new regulations. By staying ahead of the curve on AI regulation, board members can mitigate potential risks and position their companies for success in a rapidly evolving landscape.