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flag California enacts strict AI rules for financial services, requiring transparency and bias audits starting Jan. 1, 2025.

flag California has enacted a new AI law effective January 1, 2025, imposing strict requirements on the use of artificial intelligence in financial services, including transparency and accountability measures for automated decision-making. flag The law mandates that companies disclose when AI systems are used in lending, credit, and insurance decisions, and requires regular audits to prevent bias and discrimination. flag It marks a significant step in state-level AI regulation, particularly in the financial sector, and sets a precedent for other states considering similar measures.

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