On June 25, a bill to amend California's data privacy regulations made it through committee. Legislators introduced AB 375, the California Data Privacy Protection Act, in part as a compromise to replace a potential November ballot measure, the California Consumer Privacy Act, a bill that could result in even stricter data privacy regulations and that has unsurprisingly roused opposition in Silicon Valley. But while AB 375 will make California a trailblazer on data privacy in the United States, it could create problems that ultimately hinder the development of artificial intelligence.
AB 375 must pass by June 28 to ensure that the privacy initiative, which has nearly double the signatures needed for a statewide referendum, does not end up on the ballot in November. Both the Assembly and the Senate have scheduled a vote for June 28 in an attempt to put the bill in Gov. Jerry Brown's hands before the unofficial deadline. The bill follows the spirit of the European Union's General Data Protection Regulation, which went into effect in May 2018. The California law would permit consumers to obtain more information about who has handled their private information and where, and it would provide additional protection for minors. It would also give people the ability to ensure the deletion of their private data — emulating the European Union's "right to be forgotten." However, the legislation also stipulates that people may have to pay to prevent the sharing of their data if they wish to continue using certain services.
Federal lawmakers introduced legislation at the national level in April geared toward setting federal standards for data security, and Vermont has also recently passed regulations on data brokers (sellers of personal data) that require them to register with the government. Yet California's bill represents the broadest measure on data privacy to date in the United States. U.S. legislation regarding data privacy has traditionally been ad hoc, as state, federal and self-regulatory rules overlap and occasionally contradict one another. As the importance of data privacy grows and data remains a cornerstone in AI development, the way that countries manage and permit its collection will have significant implications on future technology races.
If AB 375 passes in California, it would likely set the standard for the rest of the United States. As with climate policy or the response to net neutrality, California's response to emerging regulatory questions can influence national behavior. However, if the measure forces people to pay to ensure their data is not shared, legislators risk creating a situation in which inherent biases form in data sets, because those with enough money are likely to opt out of the system. The quality of AI development in certain sectors could suffer as a result.
