California lawmakers passed AB 1979, a bill that would stop health facilities, clinics, and physician offices from letting AI independently perform clinical functions that state law requires a licensed professional to perform.

 

What happened

California's 2026 legislative session closed on August 31, 2026, producing eight privacy bills and 16 AI bills, five of which focus on health care. One of those bills, AB 1979, would prohibit a health facility, clinic, physician's office, or office of a group practice from using AI to independently perform any clinical function that the law requires a licensed professional to perform. The bill would also block AI from directing, guiding, supervising, or instructing unlicensed personnel to carry out those functions. Lawmakers sent the bill to Governor Gavin Newsom, and it would take effect January 1, 2027 if he signs it. Licensing boards, not privacy regulators, would enforce it. The Medical Board of California or the Osteopathic Medical Board of California would have jurisdiction over violations by physicians and could pursue injunctions against unlicensed practice.

Read also: How Federal and State privacy laws shape healthcare email communication

 

Going deeper

AB 1979 draws a line between AI that informs a clinical decision and AI that replaces one. Healthcare organizations can keep using AI for things like sepsis alerts, diagnostic suggestions, risk scoring, and clinical summarization, as long as a licensed professional keeps decision-making authority. The bill exempts AI used for documentation or communication that doesn't require professional judgment, such as automated updates to a patient's health record, and routine pharmacy communications like refill reminders, shipment tracking, and prescription transfer confirmations, those stay governed by HIPAA, the California Confidentiality of Medical Information Act (CMIA), and state sensitive-services confidentiality rules. The bill also allows supervised trainees to use AI as part of a licensure program.

 

What was said

The California State Board of Pharmacy recommended amendments to "ensure the prohibitions extend to all pharmacist and advanced pharmacist practitioner sites," and stated its position that "AI cannot and should not supplant such clinical judgement" in pharmacy practice.

 

Why it matters

The bill addresses concerns about what AI’s role is in clinical care by putting enforcement in the hands of licensing boards instead of a privacy regulator. California ties AI oversight directly to the professional license itself, meaning a violation risks a clinician's ability to practice, not just a fine.

California isn't the only state implementing such bills. Washington's SB 5395 prohibits health carriers, healthcare benefit managers, and public employee health plans from relying solely on AI to deny, delay, or limit healthcare services during prior authorization, and requires that only a licensed or qualified health professional make the final adverse determination. The law does allow AI to assist, but only if the system accounts for the patient's individual clinical conditions and undergoes periodic performance review. Utah's SB 319 takes a similar approach on the insurance side, requiring healthcare professionals to base determinations on independent medical judgment rather than AI recommendations. Together, these laws show that AI can stay in the workflow, but a licensed human has to hold the final decision.

 

The bottom line

AB 1979 doesn't ban AI in the clinical workflow, but it would prevent AI from making the final call in place of a licensed professional. Health care organizations should check where AI touches clinical decisions now, confirm a licensed person retains authority at each of those points, and document that oversight before the January 1, 2027 effective date.

 

FAQs

Does AB 1979 ban AI from health care settings entirely?

No, it only bars AI from independently performing clinical functions that a licensed professional is legally required to perform, not from supporting or informing that work.

 

Who enforces AB 1979 if a violation occurs?

Licensing boards enforce it, with the Medical Board of California or the Osteopathic Medical Board of California handling violations by physicians, rather than a privacy regulator.

 

Does the bill affect how AI is used for patient communications?

No, the bill exempts AI-generated communications that don't require professional judgment, such as automated record updates or routine pharmacy notices.