10-13-25 - California Leads the Way in AI Regulation: What Employers Need to Know

California has positioned itself at the forefront of artificial intelligence regulation with the enactment of the Frontier Artificial Intelligence Act. The new law requires companies to disclose safety measures and report risks associated with AI technologies. Simultaneously, the state has begun enforcing regulations on automated decision-making systems (ADS) for employers—rules that could significantly reshape workplace practices across industries.
In a recent article for HR Brew, Wende Knapp, who leads Woods Ovaitt Gilman's Employment Law Practice Group, highlights a critical concern: many employers may already be using AI tools in HR functions without fully understanding the associated risks and compliance requirements.
Knapp advises organizations to take immediate action by conducting a comprehensive inventory of all AI tools currently in use and performing bias audits to prepare for potential compliance challenges. As California's regulatory framework continues to evolve, proactive compliance will be essential for employers navigating this new landscape.
Read the full article on HR Brew: California Lawmakers Are Leading on AI Legislation and Regulation