AI Regulatory Measure Fails

The multiyear effort for Connecticut to be one of the first states in the country to regulate the business use of artificial intelligence has once again failed.  

SB 2, the omnibus artificial intelligence bill, was not acted upon by the state House of Representatives prior to the legislature’s June 4 deadline. 

Though the state Senate passed a bipartisan amendment to the bill removing many provisions regulating AI use for developers, integrators, and deployers and the use of general-purpose AI, the bill failed to advance in the House after strong opposition from the business community and the Lamont administration. 

The business community joined the administration in expressing concerns about a state-by-state patchwork approach to AI regulation that could chill innovation and investment if other states do not have similar requirements on employers. 

While the bill passed out of the Senate made significant changes to the far reaching regulatory scheme envisioned in the bill passed out of the General Law Committee, concerns remained about the general impact on innovation that any substantive regulation of AI use may have on retaining and attracting investment in Connecticut.

Federal Action

Additionally, the requirements concerning human review for adverse decisions could have added significant burdens and costs for Connecticut employers. 

“Connecticut’s existing robust nondiscrimination laws provide significant protections for consumers in Connecticut without the need for costly and burdensome regulations on Connecticut’s innovators,” said CBIA’s Chris Davis.

The legislature’s inaction also follows federal efforts to curtail state-by-state regulations on AI.

“We applaud the legislature’s recognition of the negative impact these proposed regulations would have had on Connecticut’s economy as artificial intelligence has already shown how it can positively transform industries, creating efficiencies that improve productivity and drive growth across industry sectors.” 

The legislature’s inaction also follows federal efforts to curtail state-by-state regulations on AI. The federal budget reconciliation bill that passed the House of Representatives in Washington included a 10-year moratorium on all state-level AI regulation. 

That moratorium now awaits action by the U.S. Senate. 

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For more information, contact CBIA’s CBIA’s Chris Davis (860.244.1931).