Substitute Senate Bill No. 5, effective October 1, 2026, introduces comprehensive regulations aimed at enhancing online safety, particularly for subscription-based providers of artificial intelligence (AI) technology. The bill requires these providers to furnish written notices to consumers detailing key subscription terms and conditions, including any limitations and the provider's ability to modify access. Violations of these requirements are classified as unfair or deceptive trade practices, enforceable solely by the Attorney General, without granting a private right of action. The bill also defines "catastrophic risk" related to frontier models and prohibits frontier developers from limiting liability in such cases. Additionally, it establishes protections for employees of frontier developers against retaliation for whistleblowing, mandates the creation of an internal reporting process, and requires employee education on their rights.

The bill further addresses the use of AI in various contexts, including automated employment-related decision technologies, mental health services provided by AI companions, and the educational framework for AI. It mandates that operators of AI companions implement protocols to safeguard user mental health, particularly for minors, and prohibits harmful interactions. The bill also emphasizes the importance of anti-bias testing in employment practices, expands protections against discrimination, and introduces a regulatory framework for AI verification processes. Moreover, it establishes the Connecticut AI Academy to promote digital literacy and workforce development in AI, while requiring state agencies to inventory AI systems and conduct impact assessments. Overall, the bill aims to foster a responsible approach to AI integration while ensuring consumer protection and workplace equity.

Statutes affected:
Committee Bill: 5-270, 32-7p, 32-1o
GL Joint Favorable Substitute: 5-270, 32-7p, 32-1o
File No. 338: 5-270, 32-7p, 32-1o
JUD Joint Favorable: 5-270, 32-7p, 32-1o
APP Joint Favorable: 5-270, 32-7p, 32-1o
Public Act No. 26-15: 32-7p, 32-1o, 4-67p