This bill introduces regulations on the use of artificial intelligence (AI) by state agencies, prohibiting certain uses and establishing guidelines for compliance. It defines AI, generative AI, deepfakes, and state agencies, and applies to all computer systems operated by state agencies, with exceptions for research by state-funded institutions of higher learning and consumer systems in common personal use. The bill prohibits state agencies from using AI to unlawfully discriminate against individuals or groups, employ real-time biometric identification systems for surveillance in public spaces without a warrant, and create deepfakes for deceptive or malicious purposes.

Permitted uses of AI by state agencies include situations where AI-generated recommendations or decisions are reviewed by a human before implementation, particularly in areas affecting individual rights, biometric identification, critical infrastructure management, law enforcement actions, and legal interpretations. Disclosure is required when content is generated by AI without human review, and users must be informed when interacting with AI systems. State agencies must comply with the new regulations within 9 months, ensure new AI systems adhere to the chapter's provisions, and report compliance to the Department of Information Technology. The bill also requires annual reporting on AI systems and procedures to ensure ongoing compliance. The act is set to take effect on July 1, 2024, and the fiscal note indicates no financial impact on state, county, or local expenditures or revenue.