California's AI Transparency Act takes effect in July.

Any AI system interacting with California residents must disclose that it is not human, explain how it uses personal data to personalize responses, and provide a mechanism to opt out of behavioral profiling.

The practical read for builders: this is the state-level chatbot disclosure advisory from last year, but with teeth. Fines start at $2,500 per violation per user. The opt-out mechanism is the part most systems are not ready for — it means you need to be able to turn off personalization without degrading the core experience. If you cannot do that, the personalization is not a feature. It is a dependency.