California’s SB 942, the AI Transparency Act, became operative on August 2, 2026, requiring covered generative-AI providers with more than one million monthly users to offer a free AI content detection tool and give users options for visible and embedded disclosures on synthetic media. The law also mandates latent disclosures embedded in AI-generated images, video, and audio, and requires providers to flow the same obligations down to third-party licensees or revoke their access within 96 hours. Violations carry civil penalties of $5,000 per day, and amendments under AB 853 will extend similar duties to large online platforms and AI hosting platforms starting January 1, 2027.
