California businesses using Automated Decision-Making Technology (“ADMT”) should prepare for a significant privacy compliance deadline on January 1, 2027. The California Privacy Protection Agency’s regulations require covered businesses to provide notices and consumer rights when qualifying technology makes specified significant decisions. Updating a privacy policy alone will not establish a working process for handling those decisions.
California ADMT compliance begins with understanding how software actually influences outcomes. A product may be marketed as an assistant while effectively determining who receives a job offer or access to housing. Conversely, a business may use sophisticated software without triggering these particular rules. The applicable definitions and the actual decision process must guide the assessment.


