Substitute Senate Bill No. 5, effective October 1, 2026, introduces comprehensive regulations aimed at enhancing online safety, consumer protection, and accountability in the realm of artificial intelligence (AI). The bill mandates subscription-based AI providers to furnish consumers with written notices detailing key terms and conditions before entering or renewing subscriptions, with violations classified as unfair trade practices enforceable by the Attorney General. It also establishes definitions for terms related to AI, such as "catastrophic risk" and "foundation model," and prohibits frontier developers from limiting liability in cases of catastrophic risks. Additionally, the bill includes provisions to protect whistleblowers in the AI sector, requiring large developers to create internal reporting processes and ensuring employees are informed of their rights.

The bill further addresses the use of AI in employment decisions, mandating transparency from developers and deployers regarding automated technologies and their implications for employment practices. It expands anti-discrimination protections, particularly concerning pregnancy-related discrimination, and introduces measures to support victims of domestic violence and sexual assault in the workplace. Moreover, the bill emphasizes the importance of educational initiatives, establishing the Connecticut AI Academy to enhance digital literacy and workforce skills in AI. It also mandates the creation of a working group to evaluate AI's impact on the workforce and outlines a framework for AI verification processes, ensuring responsible AI usage while promoting innovation and collaboration among state agencies and educational institutions.

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