A new California law took effect over the weekend, aimed at enforcing AI transparency.
The California AI Transparency Act requires companies to embed data into AI-generated digital content.
Eddan Katz is the head of Public Policy and Affairs at Encypher, which verifies AI content. He says that standards set by California and the European Union give users a history of when and how the content was created and how it may have changed using AI tools over time.
"Think of it as a tamper-proof nutrition label for digital content," said Katz, "cryptographically sealed so it can’t be faked."
State officials say it's important that consumers have the ability to distinguish what is AI and what isn't as generated content becomes increasingly realistic.
Companies that don’t comply will have to pay a fine of $5,000 per violation per day.
California is the first US State to regulate AI content this way. Washington will start similar labeling this coming January, and Oregon and New York could potentially follow suit.
A second phase of the AI Act will take effect in January, requiring social media platforms to also embed AI markers into their content.
