Connecticut Senate Pass New AI Regulation Bill

The Connecticut Senate has recently passed a comprehensive bill to regulate artificial intelligence (AI) and address various AI-related provisions. The bill, known as Senate Bill 00002, establishes a framework for regulating AI and introduces several key provisions to govern the use of AI systems in the state.

Key Provisions of the Bill

The bill introduces several significant provisions that are designed to regulate the development and deployment of AI systems in Connecticut.

Regulation of High-Risk AI Systems

The bill introduces the concept of “high-risk AI systems” and requires developers and deployers of such systems to use reasonable care to protect consumers from known or reasonably foreseeable risks of algorithmic discrimination.

The bill defines a “high-risk AI system” as any machine-based system used to make decisions concerning employment or housing that poses a significant risk of harm to individuals' health, safety, or fundamental rights.

Consumer Protection and Notice Requirements

The bill includes provisions to protect consumers, such as adverse decision appeals, consumer notice requirements, and AI training for state agency employees.

It also imposes penalties for deceptive media distribution before an election, making it a crime to knowingly distribute a communication with deceptive synthetic media within 90 days before an election or primary.

Compliance for Insurers and Banking Entities

Under the bill, insurers, fraternal benefit societies, and health carriers are deemed to fully comply with the bill’s provisions if they have implemented and maintained a written AI systems program under the requirements established by the Insurance Commissioner.

Similarly, certain banking entities are deemed to fully comply with the bill’s requirements if they are subject to examination by a state or federal prudential regulator under published guidance or regulations that apply to using high-risk AI systems meeting certain standards.

Establishment of Connecticut AI Academy and AI Symposium

The bill requires the establishment of a “Connecticut AI Academy” to offer online courses on AI and its responsible use. Additionally, the Department of Economic and Community Development (DECD) is mandated to conduct a “CT AI Symposium” to foster collaboration between academia, government, and industry to promote the establishment and growth of AI businesses in the state.

Working Group and Technology Talent and Innovation Fund

The bill establishes a working group to engage stakeholders and experts to make recommendations on various AI-related issues, including best practices, resources for small businesses, and legislation to regulate the use of general-purpose AI.

Furthermore, the bill repurposes the “Technology Talent Advisory Committee” to develop programs to expand the state's technology talent pipeline, particularly in the fields of AI and quantum computing.

Implications and Next Steps

The passing of this bill signifies a significant step towards regulating AI in Connecticut. The provisions outlined in the bill aim to ensure the responsible development and deployment of AI systems, protect consumers from algorithmic discrimination, and promote collaboration and innovation in the field of AI.

The bill’s passage also highlights the growing importance of AI regulation and the need for comprehensive frameworks to govern the use of AI technologies.

As AI continues to play an increasingly prominent role in various sectors, including healthcare, finance, and governance, implementing robust regulatory measures is crucial to safeguarding the rights and interests of individuals and ensuring the ethical and responsible use of AI.

Following the bill's passage, detailed regulations, guidelines, and programs may be developed to support its implementation. Stakeholders, including developers, deployers, state agencies, and regulatory bodies, must work collaboratively to ensure compliance with the new requirements and promote the responsible and ethical use of AI in Connecticut.

For more information on the bill and its provisions, please refer to the official Connecticut General Assembly website here.

In conclusion, the passage of the sweeping AI regulation bill by the Connecticut Senate represents a significant milestone in the state’s efforts to regulate and govern the use of AI.

The bill introduces a range of provisions to protect consumers, promote collaboration, and ensure the responsible development and deployment of AI systems. As Connecticut implements this legislation, it is poised to set a precedent for AI regulation and governance in the United States.