On April 23, 2025, California Governor Gavin Newsom sent a letter to the California Privacy Protection Agency (CPPA) expressing concerns over proposed regulations that would impose strict requirements on businesses ranging from tech to healthcare using automated decision-making technologies (ADMT), including artificial intelligence (AI). The draft rules aim to grant consumers rights such as opting out of ADMT usage and require businesses to conduct detailed risk assessments.
Governor Newsom warned that the regulations could have “significant unintended consequences and impose substantial costs” (estimated at $3.5 billion in the first year) potentially threatening California’s leadership in technological innovation. He emphasized the need for regulations that are “clear, reasonable, and focused” to “promote responsible innovation while safeguarding individual rights.” The CPPA board remains divided on the proposed regulations, with some members advocating for stronger consumer protections and others cautioning against potential legal risks. A final decision is expected by November 2025.