Senate Amends AI Bill, But Concerns Remain

The state Senate approved an omnibus artificial intelligence bill May 14, but only after making significant modifications to initial proposed regulatory reforms. 

The bipartisan amendment to SB 2 removed many provisions regulating AI use for developers, integrators, and deployers as well as language regulating the use of general-purpose AI.

Instead, the bill now requires that anyone doing business in Connecticut disclose to each consumer who interacts with an AI system of that interaction.

This change also removed all exemptions, except for HIPPA requirements, from the underlying bill, so now all businesses will be required to comply with the disclosure requirement.

The bill requires each deployer of a high-risk AI system to give consumers a high-level statement about the reasons for any adverse decisions made by the system and an opportunity to correct the data used when making a consequential decision on:

• an education enrollment or opportunity
• employment or employment opportunity
• loan, financing, or credit offered or extended to a consumer for any personal, family, or household purpose, state or municipal service, or housing or legal services

If the consumer believes incorrect data was used, they can appeal and ask for human review of the decision, which could place a burden on businesses now required to meet with any consumer that disagrees with a decision.

Changes

The last-minute changes to the bill were made after pushback from numerous industries about the impact of expansive regulations on the growing use of AI by businesses.

The Lamont administration also expressed concerns about a state-by-state patchwork approach to AI regulation that could chill innovation and investment in Connecticut if other states do not have similar requirements on employers.

Acknowledging these concerns, proponents of the amendment sought to maintain consumer protections while limiting the exposure of developers and users to litigation.

“We want businesses to come to Connecticut, know that they’re welcome, know we’re going to be good to them and not put burdens on them, whether that comes in the form of regulations or comes in the form of fees,” said General Law Committee ranking member Sen. Paul Cicarella (R-North Haven). 

“We want businesses to come to Connecticut, know that they’re welcome, know we’re going to be good to them and not put burdens on them.” 

Sen. Paul Cicarella

The amended bill retains many of the workforce development and regulatory sandbox provisions included in the original bill passed out of the General Law Committee intended to further develop AI workforce opportunities.

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

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

SB 2 awaits potential action by the House. 

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