Artificial intelligence: auditors: enrollment.

1. **ONE-SENTENCE SUMMARY:** AB1405 establishes regulations for the use of artificial intelligence in auditing processes and requires businesses to enroll in a state-managed program. 2. **KEY REQUIREMENTS:** - Enroll in the state’s artificial intelligence auditing program. - Ensure compliance with any standards set by the program regarding AI use in business operations. - Maintain records of AI usage and audits as specified by the state. 3. **DEADLINES:** - Effective Date: January 1, 2024. - Enrollment in the auditing program must be completed by June 30, 2024. 4. **PENALTIES:** - Non-compliance may result in fines up to $10,000 per violation. - The state may impose additional penalties for repeated violations. 5. **SMB IMPACT:** Small businesses using AI in their operations will need to adjust their practices to comply with new enrollment and auditing requirements, potentially increasing administrative tasks and costs. However, these regulations aim to enhance transparency and accountability in AI usage, which could build customer trust.