The bill introduces Chapter 166, "Automated Decision Tools," to Title 42 of the General Laws, which defines terms related to automated decision-making and mandates impact assessments for deployers and developers of such tools. The assessments must include a tool's purpose, outputs, data processed, potential adverse impacts, and safeguards against algorithmic discrimination. Deployers with fewer than 25 employees are exempt unless their tool affects more than 999 people per year. The bill requires deployers to notify individuals when an automated decision tool is used in making consequential decisions about them and provide an alternative process if requested and technically feasible. Developers must provide deployers with detailed information about the tool's intended uses and limitations while protecting trade secrets. Both parties must establish governance programs, conduct annual reviews, and maintain impact assessment results for two years.

Starting January 1, 2026, individuals can sue deployers for algorithmic discrimination that causes actual harm, with the possibility of receiving compensatory damages, declaratory relief, and attorneys' fees and costs. Public entities like the attorney general or city or town solicitors can also bring civil actions against deployers or developers for violations, provided they give a 45-day notice and the opportunity for the violation to be cured. The bill prohibits the use of automated decision tools that result in algorithmic discrimination and will take effect upon passage.