The bill establishes regulations regarding the use of artificial intelligence (AI) systems by state agencies in Iowa, focusing on employment and related purposes. It mandates the Department of Management (DOM) to maintain an inventory of AI systems utilized by state agencies, which includes guidance on the data elements to be collected, such as the purpose and uses of these systems. The inventory must be posted on the DOM's website and updated annually, with a report submitted to the General Assembly by January 15. The DOM is also authorized to withhold certain information from the inventory if its disclosure could compromise the security of state information technology assets.

Additionally, the bill requires state agencies that employ automated employment decision-making tools to publish a list of these tools on their websites within 90 days of their use and to provide an annual report to the General Assembly. The report must include details such as the description, date of use, and purpose of the tools. Importantly, the bill prohibits state agencies from using AI systems in ways that could affect the collective bargaining rights or employment conditions of state employees, including actions that could lead to discharge, transfer, or reduction in wages or benefits. Furthermore, it restricts the transfer of existing employee duties to AI systems, ensuring that employee rights and privileges are protected.