Substitute Bill No. 2 introduces comprehensive regulations for the development, integration, and deployment of high-risk artificial intelligence (AI) systems in Connecticut, with a focus on preventing algorithmic discrimination. The bill defines key terms such as "algorithmic discrimination" and "high-risk artificial intelligence system," and mandates that developers, integrators, and deployers exercise reasonable care to protect consumers from discriminatory practices. Developers are required to provide detailed documentation regarding their AI systems, including known risks, while integrators must enter binding contracts with developers and disclose their use of high-risk AI systems. Deployers are tasked with conducting impact assessments and maintaining risk management policies, ensuring transparency and accountability in AI interactions with consumers.

The legislation also establishes an artificial intelligence regulatory sandbox program to facilitate the safe testing of AI technologies, alongside a working group to address consumer protection and labor implications related to AI. It emphasizes public education and outreach, particularly for small businesses, and outlines the Attorney General's exclusive enforcement authority over violations of the new regulations. Notably, the bill includes provisions to protect sensitive information and trade secrets, while also mandating that AI systems capable of generating synthetic digital content be clearly marked as such. Overall, the bill aims to enhance consumer protection, promote responsible AI deployment, and foster innovation in the state's technological landscape.

Statutes affected:
Committee Bill: 10-21l, 32-7p, 32-39e
GL Joint Favorable Substitute: 10-21l, 32-7p, 32-39e
File No. 603: 32-7p, 32-39e
JUD Joint Favorable: 10-21l, 32-7p, 32-39e
APP Joint Favorable: 10-21l, 32-7p, 32-39e