California AI Transparency Act
Compliance reference — obligations, penalties, applicability, and primary sources.
Last verified May 2, 2026
Summary
The California AI Transparency Act (SB 942) requires "covered providers" — entities that create, code, or otherwise produce a generative AI system with over 1,000,000 monthly visitors or users that is publicly accessible within California — to provide tools for users to detect AI-generated content and to apply latent disclosures to content their systems produce. Codified at Business and Professions Code Chapter 25 (commencing with Section 22757), signed by Governor Newsom on September 19, 2024, effective January 1, 2026.
Key requirements: (1) free public AI detection tool; (2) manifest disclosure option for users on AI-generated content; (3) latent disclosure (e.g., watermarking or provenance metadata) automatically applied to AI-generated image, video, and audio content; (4) contractual requirement that licensees not strip disclosures.
Enforcement by the California Attorney General. Civil penalty is $5,000 per violation, with each day that a covered provider is in violation constituting a discrete violation — so daily exposure compounds while a violation persists.
Key obligations
Specific compliance requirements derived from the primary source. Each item links to the relevant statutory section where applicable.
- TransparencyRole: developerCal. Bus. & Prof. Code § 22757.x
Maintain a free, publicly available AI detection tool allowing users to assess whether content is generated or modified by the covered provider's AI system.
Deadlineongoing_from_effective_date
- TransparencyRole: developerCal. Bus. & Prof. Code § 22757.x
Apply latent disclosures (e.g., watermarking or provenance metadata) to AI-generated image, video, and audio content produced by the covered provider's system.
Deadlineongoing_from_effective_date
Sources
Every fact above is sourced from the official primary source. Independent verification recommended before acting on the information.
- Officialleginfo.legislature.ca.gov — Cal. Bus. & Prof. Code §§ 22757 et seq.
- leginfo.legislature.ca.gov
- oag.ca.gov
Last verified May 2, 2026
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