California lawmakers have decided to ease up on regulating AI-manipulated prices, killing bills that would have curbed software from setting prices for apartment rentals and other goods and services. One bill aimed at barring the use of personal information to set prices was also reined in to apply only to grocery stores.
The decision comes as the use of AI in pricing algorithms becomes increasingly prevalent, raising concerns about fairness and transparency. While some lawmakers had pushed for stricter regulations, others argued that the bills were too broad or would stifle innovation.
Other AI-related bills are still moving forward in the California Legislature. Bills to protect children from AI companion bots that mimic intimate human relationships and may exacerbate mental health problems are up for vote. Lawmakers are also considering bills to prevent deepfake pornography of minors and hold developers accountable for AI technology.
A bill that would have required data centers to disclose energy use was also killed, sparking debate about the environmental impact of AI infrastructure. The California Legislature has until September 12 to decide on these bills, and Governor Newsom will then decide whether to sign or veto them by October 12.
