Substitute Senate Bill No. 1103, also known as Public Act No. 23-16, addresses the use of artificial intelligence (AI) in decision-making processes by state agencies and aims to protect personal data privacy. The bill defines "artificial intelligence" and "state agency" and requires the Department of Administrative Services to conduct an annual inventory of all AI systems used by state agencies, including details such as the system's name, vendor, capabilities, and uses. The inventory must also indicate if an impact assessment was conducted before the system's implementation. Starting February 1, 2024, the department must assess these AI systems to prevent unlawful discrimination or disparate impact. The Office of Policy and Management is responsible for developing policies and procedures to govern the procurement, implementation, and assessment of AI systems, which must be posted on the office's website. If an AI system is determined to result in unlawful discrimination or disparate impact, it cannot be implemented.

The bill also requires the Judicial Department to follow similar procedures for AI systems and prohibits state contracting agencies from entering into contracts with businesses that do not comply with certain general statutes. Additionally, the bill establishes a working group to develop best practices for the ethical and equitable use of AI in state government, which will consider the White House's "Blueprint for an AI Bill of Rights" and the potential regulation of AI in the private sector. The working group, consisting of appointed members with relevant experience or qualifications, will submit a report with its findings and recommendations by February 1, 2024, after which it will terminate. The bill was approved on June 7, 2023.