STOP AB 1018 (BAUER-KAHAN) THE “AUTOMATED DECISIONS SAFETY ACT” BEFORE IT’S TOO LATE

California lawmakers are considering AB 1018 (Bauer-Kahan) also known as the "AUTOMATED DECISIONS SAFETY ACT" this week. If it passes, it means higher costs for local shops, fewer jobs, and higher prices for everyday Californians.

AB 1018 sounds technical, but here’s the simple breakdown:

AB 1018, a.k.a. the “Automated Decisions Safety Act,” targets any business, big or small, that uses technology like AI, machine learning, or data-based tools to make ordinary business decisions such as hiring, offering a loan, or scheduling healthcare -- that that this bill treats as high-risk. 

Starting in 2027, the bill forces everyone creating automated tools to run and publish costly “impact assessments,” and businesses using these tools will have to notify customers every time they’re affected, set up appeal processes, and provide detailed explanations for routine decisions -- creating a pile-on of expensive, confusing mandates -- and opening the door to constant legal quagmires and penalties employers can’t afford.

How AB 1018 Impacts Businesses (and Why It’s a Problem):

• Overly Broad: The bill sweeps in everyday tools like scheduling software, online ordering systems, and inventory programs, treating them the same as high-risk AI. This means small businesses face heavy compliance even when the technology they use is routine and harmless.
• Costly Red Tape: Businesses will be forced to pay for audits, impact reports, customer appeals, and opt-out systems. The cost of doing business in California is already too hight and this is a recipe for higher prices and slower service.
• Unclear Liability: Importantly -- the bill blurs the line between those who create these tools and those who simply use them, leaving small businesses legally responsible for systems they didn’t design and can’t fully control.

California’s small businesses are already struggling in one of the most expensive states in the country, AB 1018 will make it even harder to survive.

The CA State Senate votes this week. CLICK HERE to tell your Senator: Vote NO on AB 1018 (Bauer-Kahan).