The Right to Opt Out of AI Profiling — Under Your State’s New Law
What Is AI Profiling and Why Should You Care?
Every time you browse a website, apply for a loan, or even look for a job online, algorithms may be quietly building a picture of who you are. This process is called AI profiling, and it involves collecting data about your behavior, preferences, and personal traits to make predictions or decisions about you — often without your knowledge.
These automated systems can influence whether you get approved for credit, which advertisements follow you around the internet, and even whether you land a job interview. For most people, this happens completely in the background. You never see the profile being built, and you rarely get a chance to question or challenge the conclusions it draws.
That is starting to change. Several U.S. states have passed or are actively working on laws that give residents the right to opt out of certain types of algorithmic profiling. Understanding what these laws cover — and how to use them — is becoming an essential part of protecting your privacy in the digital age.
How Algorithmic Profiling Actually Works
AI profiling systems gather data from many sources. This can include your purchase history, location data, social media activity, web browsing patterns, and even publicly available records. Machine learning models then analyze this information to assign you to categories or predict your future behavior.
Companies use these profiles for a wide range of purposes:
- Targeted advertising: Showing you ads based on your predicted interests or vulnerabilities
- Credit scoring: Determining your risk level as a borrower using non-traditional data
- Employment screening: Filtering job applicants based on algorithmic assessments
- Insurance pricing: Setting premiums based on behavioral data
- Content recommendation: Deciding what news, products, or media you see
The concern is that these systems can embed bias, make errors, and affect real outcomes in people’s lives — all without any human ever reviewing the decision or giving you a way to push back.
Which States Have Passed Laws Addressing AI Profiling?
AI regulation at the state level is moving quickly. While the federal government has been slow to act, a growing number of states have enacted consumer privacy laws that include specific rights related to automated decision-making and profiling.
Colorado
Colorado’s Privacy Act, which took effect in July 2023, includes provisions that require businesses to let consumers opt out of profiling when it is used to make decisions that have legal or similarly significant effects. This covers areas like employment, credit, housing, and access to public services.
Connecticut
Connecticut’s data privacy law also gives residents the right to opt out of profiling in the context of automated decisions that produce significant effects. Businesses must provide a clear and accessible way for consumers to exercise this right.
Virginia
Virginia’s Consumer Data Protection Act allows residents to opt out of profiling that is used for decisions involving legal or significant effects. Consumers also have the right to request a human review of an automated decision in some cases.
Texas, Montana, and Others
Texas and Montana have passed similar consumer privacy laws that include profiling opt-out rights. More states are following, and legislation is pending in several others. The specific rules vary from state to state, so it is important to look up the law in your particular location.
What Exactly Can You Opt Out Of?
Not every use of AI or automated systems is covered under these laws. Most state laws focus on profiling that leads to decisions with significant real-world consequences. Here is a general breakdown of what typically is and is not covered:
Usually Covered
- Automated decisions about loan or credit applications
- Employment screening or hiring decisions
- Housing applications and tenant screening
- Insurance eligibility or pricing decisions
- Access to education or public programs
Often Not Covered or Limited
- Basic website personalization and product recommendations
- Internal analytics that do not affect individual decisions
- Profiling used purely for security or fraud prevention
- Research and statistical purposes with privacy safeguards in place
The key factor in most laws is whether the profiling produces a decision that meaningfully affects your rights, opportunities, or access to important services. If it does, you likely have the right to opt out or at least request human review.
How to Actually Exercise Your Rights
Knowing your rights is one thing. Using them is another. Here is a practical guide to how you can opt out of AI profiling under state law.
Step 1: Find Out If Your State Has a Law
Start by checking whether your state has enacted a consumer privacy law with profiling opt-out provisions. Resources like the International Association of Privacy Professionals (IAPP) and state attorney general websites keep updated lists of enacted legislation.
Step 2: Identify the Companies Profiling You
This is harder than it sounds. Start with companies you regularly interact with — banks, insurance providers, employers, and retailers. Also consider data brokers, which are businesses that collect and sell personal data even if you have never directly dealt with them.
Step 3: Submit an Opt-Out Request
Most laws require companies to provide a straightforward way to submit opt-out requests. Look for a “Do Not Sell or Share My Personal Information” link or a “Privacy Rights” section on the company’s website. Some states require businesses to honor opt-out signals from browser tools like the Global Privacy Control (GPC).
Step 4: Request a Human Review If Needed
If an automated decision has already affected you — like being denied credit or rejected from a job — some laws allow you to request that a human being review that decision. Submit a written request to the company explaining what happened and citing your state’s privacy law.
Step 5: File a Complaint If Your Rights Are Ignored
If a company refuses to honor your opt-out request or fails to respond within the required timeframe, you can file a complaint with your state attorney general’s office. While private lawsuits are limited under most state laws, regulatory enforcement is increasing.
Limitations and Challenges You Should Know About
While these new laws represent meaningful progress, they are not perfect. There are real limitations that can make it difficult to fully protect yourself from algorithmic profiling.
- Enforcement gaps: Many small and mid-sized companies are not yet complying, and regulators do not have the resources to catch everyone.
- Lack of transparency: Companies are not always required to tell you that profiling has taken place or explain the logic behind an automated decision.
- Data broker loopholes: Even if you opt out with a company directly, data brokers may continue to profile you and sell that information to others.
- Varying definitions: What counts as a “significant” decision varies by state, creating confusion about when opt-out rights actually apply.
- No federal standard: Without a national law, your rights depend entirely on where you live.
Why This Matters Beyond Individual Privacy
AI profiling is not just a personal concern — it has broader implications for fairness and equal opportunity in society. Research has repeatedly shown that algorithmic systems can perpetuate and even amplify existing biases related to race, gender, age, and income. When these systems make decisions about who gets a loan, a job, or affordable insurance, errors and biases can have cascading effects on communities.
Opt-out rights give individuals a way to push back, but they also create pressure on companies to be more careful about how they design and use these systems. Every time a consumer exercises their privacy rights, it sends a signal that accountability matters.
What to Watch For in the Coming Years
AI regulation is evolving rapidly. Here are some trends worth following:
- More states joining in: Several additional states are expected to pass consumer privacy laws with profiling provisions in the next few years.
- Federal action: Proposals for a national consumer privacy law have gained attention in Congress, though passing one remains uncertain.
- Stronger disclosure requirements: Some newer bills are pushing for companies to explain AI decisions more clearly, not just allow opt-outs.
- Sector-specific rules: Areas like hiring, healthcare, and lending may see targeted regulations that go beyond general privacy law.
- International influence: The European Union’s AI Act and GDPR continue to set a global standard that U.S. lawmakers are watching closely.
Taking Action Today
You do not have to wait for perfect legislation to start protecting yourself. Here are some concrete steps you can take right now:
- Enable the Global Privacy Control on your web browser — it automatically signals opt-out preferences to websites that recognize it
- Review and update your privacy settings on social media platforms and major retail accounts
- Submit opt-out requests to data brokers — services like OptOutPrescreen.com and the Data & Marketing Association’s opt-out tool can help
- Read the privacy policy and terms of service before using new apps or services, especially those that make decisions about you
- Stay informed about new laws in your state by bookmarking your attorney general’s privacy rights page
The right to opt out of AI profiling is a relatively new but important tool for protecting your personal autonomy in a world increasingly shaped by algorithms. The more people understand and use these rights, the more pressure builds on companies and lawmakers to ensure these systems are fair, transparent, and accountable.
