Gov. Gavin Newsom signed a law Thursday, Sept. 10, that bars technology companies from using student data to train or develop artificial intelligence models.

The law will affect ed-tech tools widely used in Palo Alto Unified School District classrooms, including platforms made by Google and Canvas.

Assembly Bill 1159 closes a gap in California's 2014 student data privacy law. That law applied only to companies that "primarily" served students, CalMatters reported. Companies like Google and YouTube argued their products were not designed or marketed primarily for students, even though their tools are popular in classrooms.

The new law changes the test. Any company that knows its products are used in schools and whose products are designed or marketed to students is now prohibited from selling the data it collects or using that information for anything beyond that student's education. The rules take effect in 2027.

AB 1159 also expands protections to college students. California's 2014 law covered only prekindergarten through 12th grade.

Assemblymember Dawn Addis, a San Luis Obispo Democrat who authored the bill, said in a press release: "No child should be put at risk of big tech taking advantage of their personal data for financial — or any kind of gain."

The law affects major ed-tech providers such as Canvas and Duolingo.

The Software & Information Industry Association (SIIA) urged Newsom to veto the bill in a Sept. 3 letter, arguing it would seriously harm the educational technology ecosystem. SIIA said ambiguous AI restrictions lacked a carve-out for legitimate educational uses and warned that litigation exposure would disproportionately harm smaller ed-tech providers and raise costs for school districts.

TechNet and the California Chamber of Commerce also opposed the bill, according to CalMatters.

Newsom signed AB 1159 at a press conference alongside 12 other laws related to children and technology, including limits on children's access to AI chatbots. As we reported Sept. 11, those 13 laws addressed social media addiction and chatbot safeguards. AB 1159 is a separate measure focused on student data privacy.

The law does not cover all of children's data. Apps and websites used outside the classroom or not specifically endorsed by a school fall outside its scope. Students routinely use technology for after-school programs, sports and homework at the recommendation of coaches, teachers or parents, CalMatters noted.

PAUSD maintains a dedicated AI and student data privacy page on its website. The district received a $499,510 Golden State Pathways grant from the California Department of Education to expand computer science and AI programs, including funding AI Teacher Leads at Palo Alto High School and Gunn High School.

Districts statewide will need to review their vendor contracts before the law takes effect in 2027.