AI Glossary

SB 942 (California AI Transparency Act)

California Senate Bill 942, effective January 2026, requiring providers of generative AI systems to offer provenance tools and users of covered AI systems to disclose AI-generated content in commercial contexts. Applies to systems with over one million monthly users.

SB 942 complements the EU AI Act by establishing US-based transparency requirements for generative AI. The law requires AI providers to build provenance detection tools and make them freely available. For creative agencies operating in or serving California clients, SB 942 creates disclosure obligations when AI-generated content is used commercially.

The practical impact for agencies includes: labeling AI-generated content in advertising and marketing materials, maintaining records of which deliverables involved AI tools, and ensuring clients are informed about AI usage in their projects. AB 853, a companion bill, extends similar requirements to political advertising. Together, these laws signal that California is following the EU in mandating AI content transparency.

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