AB 1018, the Automated Decision Systems Safety Act, may have been introduced with the best of intentions, but its overly broad and vague language poses a significant threat to California's thriving tech industry, particularly for small startups and early-stage generative AI companies. Its sweeping definition could cover everyday tools like resume screeners or scheduling software, holding startups liable for factors outside their control. 

The Facts:

• The bill's focus on outcomes over intent creates legal liability for developers based on downstream effects they can't fully control.
• Compliance costs and burdens will disproportionately affect small startups, potentially pushing them out of California altogether.
• Mandatory disparity audits and impact assessments are impossible for small startups with limited resources.
• Requiring public disclosure of technical documentation risks exposing proprietary information and undermining competitiveness.
• To implement AB 1018, there is an estimated fiscal impact on health systems of $42 million in one-time costs and $24 million in ongoing costs.  

The Consequences:

• Chilling effect on innovation in high-impact areas like healthcare, hiring, and education where fair AI is needed most.
• Disproportionate impact on small startups, which lack the compliance infrastructure of Big Tech.
• Potential loss of California's status as a hub for AI investment and development.
• The State Water Board, The Civil Rights Department, The Department of Justice, The California Department of Health and Human Services (CalHHS) all report a significant fiscal impact.

 
We urge you to join us in opposing AB 1018 and work towards regulatory frameworks that both protect Californians and foster innovation. Together, we can ensure that California remains a leader in the tech industry while promoting fairness and accountability in automated systems.

Contact your legislator today and express your concerns about the devastating consequences of AB 1018.