ADMT Regulations
California's new Automated Decision-Making Technology (ADMT) regulations require businesses to give consumers the right to opt out of automated decision-making. Here's what you need to know.
What Is ADMT?
ADMT stands for Automated Decision-Making Technology. It refers to any system, software, or process that uses computation to make or assist in making decisions about consumers. This includes AI models, machine learning algorithms, automated profiling, and algorithmic decision-making.
Key ADMT Requirements
- Right to Opt-Out: Consumers must be able to opt out of ADMT processing that produces legal or similarly significant effects.
- Pre-Use Notice: Businesses must inform consumers before using ADMT, including the purpose and logic involved.
- Access Rights: Consumers can request information about how ADMT was used to make decisions about them.
- Disclosure Obligations: Businesses must provide clear, accessible descriptions of the ADMT they use.
Common Examples of ADMT
- Personalized pricing based on user behavior or profile
- Automated ad targeting and behavioral advertising
- AI-powered credit or insurance decisions
- Algorithmic content recommendations
- Automated hiring or applicant screening tools
- Fraud detection systems that affect consumer access
January 2026 Deadline
California's ADMT regulations take effect in January 2026. Businesses that use any form of automated decision-making technology must be compliant by this date or face penalties of $2,500–$7,500 per violation.
How OptOutWidget Helps
OptOutWidget provides a ready-made ADMT opt-out mechanism for your website. Our widget gives consumers a clear way to opt out of automated decision-making, and our dashboard helps you track requests and generate compliant ADMT disclosure policies automatically.