California Enacts New Restrictions on Deceptive Use of Healthcare Licensing Terms by AI Systems

On October 11, 2025, California enacted Assembly Bill No. 489, introducing new regulatory measures to address the use of artificial intelligence (AI) and generative AI (GenAI) in healthcare communications.

The legislation aims to prevent deceptive practices by prohibiting AI systems from using terms that imply licensure or certification in a healthcare profession and protecting consumers from misleading representations in AI-generated health advice, care reports or assessments.

What are the key provisions of the new law?

The bill extends existing prohibitions on the unauthorized use of healthcare licensure terms to be enforceable against persons and entities that develop or deploy AI or GenAI technologies.

Specifically, it prohibits the use of terms, letters, or phrases in AI advertising or functionality that falsely suggest the system is operated by a licensed healthcare professional (e.g., doctor, M.D.).

Violations of the new provisions fall under the jurisdiction of the relevant healthcare professional licensing boards, which may seek injunctions and other legal remedies. Each instance of a prohibited term’s use constitutes a separate violation, increasing potential liability for non-compliance.

What are the takeaways for industry stakeholders?

Assembly Bill No. 489 reflects California’s proactive approach to regulating AI in healthcare and underscores the importance of transparency in AI-generated healthcare communications.

Entities developing or deploying AI or GenAI in healthcare contexts must ensure that their systems and advertising materials do not use language that implies healthcare licensure. Robust compliance measures, including clear disclaimers, are essential to mitigate enforcement risk under the new law.

If you have any questions, please contact Jeremy Sherer, Amy Joseph, Thora Johnson, Emily Brodkin, Melania Jankowski or another Orrick team member.