What California's AI Regulations Mean for Healthcare Advertising

In July 2025, California released revised regulations under its Artificial Intelligence law. Most relevant for healthcare marketers was clarification around automated decision-making technology (ADMT).

The regulations clarified that targeted advertising is not considered a "consequential decision". This was a small but meaningful win for healthcare marketers.

The distinction matters. It means the strictest rules around ADMT do not apply to ad targeting. No new hoops, no added rules, no extra compliance lift.

This change eases one layer of complexity, yet it is not a free pass. Healthcare advertisers still need to proceed with care because:

Health data remains sensitive. Even with this clarification, health-related targeting remains subject to heightened scrutiny.

Inferences can still be problematic. Enforcement around inferred health traits (for example, the Healthline settlement) demonstrate the risks.

Opt-outs must work correctly. Regulators will test and expect reliable opt-out mechanisms from businesses.

This update did not loosen existing rules. It simply avoided adding new burdens. Healthcare marketers should take a moment to recognize their continued responsibility:

• Know how your audience data is built.
• Ensure your ad vendors are compliant with the spirit of fair and transparent use.
• Do not use deterministic audiences (actual knowledge of an individual)
• Do not use modeled audiences that infer whether an individual has a health condition.
• Treat health data with the caution and respect it demands.

For more information on the specific regulations, you can review the official California Privacy Protection Agency regulations document.