Substitute Bill No. 2 introduces comprehensive regulations for the development and deployment of artificial intelligence (AI) systems in the state, effective October 1, 2024, with specific provisions taking effect on July 1, 2025. The bill defines key terms such as "algorithmic discrimination," "high-risk AI system," and "consequential decision," and sets forth obligations for developers and deployers to protect consumers from algorithmic discrimination. Developers must provide documentation to deployers, including a general statement of intended uses and an impact assessment, to ensure transparency and accountability. Deployers are required to implement risk management policies, complete impact assessments, and notify consumers when high-risk AI systems are used in consequential decisions. The bill also mandates public disclosure of the types of high-risk AI systems deployed and how risks of algorithmic discrimination are managed. Additionally, the bill includes provisions for the creation and dissemination of synthetic digital content, requiring clear disclosure when content is AI-generated.

The bill also outlines exemptions to the obligations under sections 1 to 9, allowing for compliance with laws and cooperation with law enforcement, among other specified actions. It grants the Attorney General and the Commissioner of Consumer Protection exclusive authority to enforce the provisions, with a period for curing violations before enforcement action is taken. Violations are considered unfair trade practices, and the bill provides an affirmative defense for compliant developers or deployers who promptly address violations. Furthermore, the bill amends existing definitions and introduces new provisions related to discrimination, sexual harassment, diversity, and domestic violence in the workplace. It requires employers to provide sexual harassment training and state agencies to offer diversity and domestic violence training. The bill also includes provisions to protect certain information from disclosure under the Freedom of Information Act and establishes an Artificial Intelligence Advisory Council to recommend policies related to AI. Finally, the bill introduces new educational programs and grant opportunities to promote the responsible use of AI and address health inequities.

Statutes affected:
Committee Bill: 9-600
GL Joint Favorable Substitute: 9-600
File No. 188: 9-600
JUD Joint Favorable: 9-600