Law on AI Watermarks, Detection Tool Enacted in California

California now has the nation’s most extensive law on watermarking artificial intelligence-generated content after Gov. Gavin Newsom (D) signed legislation with new safeguards Thursday.

The measure (SB 942), named the California AI Transparency Act, reflects concerns by policymakers alarmed about recent AI advancements that can produce hyperrealistic pictures, audio, and video. Proponents contend such content can spread disinformation during election years or create deepfakes, where a person’s likeness is digitally manipulated, typically to misrepresent them.

The new law requires large generative AI companies like OpenAI to offer non-hidden disclosures on content produced with their products, such as an ...