Small Startup, Big Fines: Why California's AI Laws Don't Care About Your Headcount

Think your startup is too small for CA AI laws? Think again. 💸

The Myth of the "Small Business Exemption"

While some laws have thresholds (like the 1 million user mark for SB 942), many do not. If you are deploying AI that impacts consumers, you are on the hook.

Laws that Apply to Everyone

• AB 2013 (Transparency): If you train a model, you must disclose data. No size limit.
• AB 2905 (Robocalls): If you make the call, you follow the rules.
• CPPA Regulations: Privacy rights apply to all businesses that meet the CCPA thresholds (which are revenue or data volume based, not just headcount).

The Cost of Non-Compliance

Fines can range from $2,500 to $7,500 per violation. For a startup with limited runway, a single enforcement action can be fatal.

Conclusion

Compliance is cheaper than a lawsuit. Build it in from day one.