On September 28, California’s governor signed a number of bills into law, including to regulate health care facilities’ use of artificial intelligence (“AI”).  This included AB 3030, which regulates certain California-licensed health care facilities’ use of AI and SB 1223, which amends the California Consumer Privacy Act (CCPA) to cover “neural data.”  We discuss each bill in turn below.

AB 3030

AB 3030 requires a health facility, clinic, physician’s office, or office of a group practice that uses generative AI to generate written or verbal patient communications pertaining to patient clinical information to provide certain disclosures to patients. 

In particular, AB 3030 requires the provision of “[a] disclaimer that indicates to the patient that the communication was generated by generative artificial intelligence.”  This disclaimer must be provided in a specific format, depending on the method through which the AI is interacting with the patient:

  • For written communications involving physical and digital media (e.g., letters, emails), the disclaimer must appear prominently at the beginning of each communication;
  • For written communications involving continuous only interactions (e.g., chat-based telehealth), the disclaimer must be prominently displayed through the interaction;
  • For audio communications, the disclaimer must be provided verbally at the start and the end of the interaction; and
  • For video communications, the disclaimer must be prominently displayed throughout the interaction.

In addition, regardless of the method of communication, AB 3030 requires that the AI-generated patient communications pertaining to patient clinical information include clear instructions describing how a patient may contact a health care provider, employee of the health facility, clinic, physician’s office, or office of a group practice, or other appropriate person.

However, AB 3030 does not apply to all patient communications that are generated using AI.  AI-generated communications that are read and reviewed by a human licensed or certified health care provider are not subject to these disclosure requirements in AB 3030.  In addition, AB 3030 does not regulate the use of AI for administrative matters.  AB 3030 applies only to communications pertaining to “patient clinical information,” which means “information relating to the health status of a patient . . . [and] does not include administrative matters, including, but not limited to, appointment scheduling, billing, or other clerical or business matters.”

SB 1223

SB 1223 amends the CCPA’s definition of “sensitive personal information” to include “a consumer’s neural data.”  “Neural data” is defined as “information that is generated by measuring the activity of a consumer’s central or peripheral nervous system, and that is not inferred from nonneural information.”  With the enactment of SB 1223, California becomes the second state, following Colorado, to amend its consumer privacy law to regulate neural data. 

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Photo of Libbie Canter Libbie Canter

Libbie Canter represents a wide variety of multinational companies on managing privacy, cyber security, and artificial intelligence risks, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with U.S. and global privacy laws.

Libbie Canter represents a wide variety of multinational companies on managing privacy, cyber security, and artificial intelligence risks, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with U.S. and global privacy laws. She routinely supports clients on their efforts to launch new products and services involving emerging technologies, and she has assisted dozens of clients with their efforts to prepare for and comply with federal and state laws, including the California Consumer Privacy Act, the Colorado AI Act, and other state laws. As part of her practice, she also regularly represents clients in strategic transactions involving personal data, cybersecurity, and artificial intelligence risk and represents clients in enforcement and litigation postures.

Libbie represents clients across industries, but she also has deep expertise in advising clients in highly-regulated sectors, including financial services and digital health companies. She counsels these companies — and their technology and advertising partners — on how to address legacy regulatory issues and the cutting edge issues that have emerged with industry innovations and data collaborations.

Chambers USA 2026 ranks Libbie in Band 2 Nationwide for both Privacy & Data Security: Privacy and Privacy & Data Security: Healthcare.Chambers USA notes, Libbie is “incredibly sharp and really thorough. She can do the nitty-gritty, in-the-weeds legal work incredibly well but she also can think of a bigger-picture business context and help to think through practical solutions.”

Photo of Elizabeth Brim Elizabeth Brim

Elizabeth Brim provides strategic advice to clients across the health care, life sciences, digital health, and technology sectors, helping them navigate complex privacy, regulatory, and compliance issues involving health and other personal information.

Elizabeth advises clients on compliance with evolving privacy, data governance…

Elizabeth Brim provides strategic advice to clients across the health care, life sciences, digital health, and technology sectors, helping them navigate complex privacy, regulatory, and compliance issues involving health and other personal information.

Elizabeth advises clients on compliance with evolving privacy, data governance, and regulatory frameworks governing the collection, use, disclosure, and protection of health, genetic, consumer health, and other sensitive data. Her work includes counseling on HIPAA, state privacy laws, information blocking requirements, TEFCA, and other federal and state laws affecting health information, digital health technologies, and privacy compliance more broadly.

Elizabeth’s experience spans a broad range of privacy, data governance, cybersecurity, and regulatory issues arising in connection with innovative products and services, artificial intelligence and other emerging technologies, clinical trials and research initiatives, strategic transactions, and commercial arrangements. She regularly advises clients on complex issues involving data governance, privacy compliance, and the protection and exchange of health and other sensitive information.

Elizabeth also advises clients on related health care regulatory and compliance matters, including fraud and abuse, corporate practice of medicine, and other requirements affecting innovative care delivery models.

Elizabeth maintains an active pro bono practice, which includes assisting nonprofit entities with data privacy compliance and vendor contracting.

Elizabeth is an author of the American Health Law Association treatise, Pricing, Market Access, and Reimbursement Principles: Drugs, Biologicals and Medical Devices and the U.S. chapter of the Global Legal Insights treatise, Pricing & Reimbursement Laws and Regulations.