The Penalties of Non-Compliance: A 2026 Update

Many clinic owners view AI regulations as "soft rules"—guidelines that won't really be enforced. In 2026, that is a dangerous misconception. The enforcement mechanisms for AB 489 and AB 3030 have teeth.

1. Administrative Fines

The most immediate penalty is financial. Violations of the "Right to Know" (AB 489) can incur civil penalties of up to $2,500 per violation.

"Per violation" does not mean per day. It means per patient interaction. If your non-compliant chatbot talks to 100 patients a day, that is $250,000 in potential fines daily. See California Civil Code Section 17200 (Unfair Competition Law) for broader context on business practice violations.

2. Medical Board Action

For licensed providers, the greater risk is your license. The Medical Board of California has stated that using unsupervised AI to treat patients constitutes "unprofessional conduct."

This can lead to:

• Public reprimands (permanent mark on your record).
• Probation.
• Suspension or revocation of your medical license.

3. Malpractice Liability

If an AI gives bad advice and a patient is harmed, standard malpractice insurance may deny the claim if you were using non-compliant, unauthorized software. You could be personally liable for millions in damages.

Conclusion

Compliance is cheaper than a lawsuit. The cost of auditing your AI and adding a few disclosure banners is negligible compared to the risk of losing your practice.