Analysis
The State of State AI Laws: 2023
August 3, 2023 |
The 2023 legislative session has seen a surge in state AI laws proposed across the U.S., surpassing the number of AI laws proposed or passed in past legislative sessions. Ten states included AI regulations as part of larger consumer privacy laws that were passed or are going into effect in 2023, and even more states have proposed similar bills. Several states proposed task forces to investigate AI, and others expressed concern about AI’s impact on services like healthcare, insurance, and employment. Below is a list of state laws going into effect, passed, or proposed for the current legislative session.
Laws going into effect in 2023
Of the AI-related laws going into effect in 2023, most of them are part of comprehensive consumer privacy laws. These laws regulate AI and automated decision-making by allowing users to opt-out of profiling and requiring impact assessments. One law in New York City stands out as it “blazes a path for A.I. regulation” in hiring, attracting national attention.
State/City | Name | Date passed | Date in effect | Description |
California | California Privacy Rights Act (CPRA) | November 3, 2020 | January 1, 2023 | CPRA amends the California Consumer Privacy Act, introducing provisions impacting AI like additional limitations on data retention, data sharing, and use of sensitive personal information. |
Colorado | Colorado Privacy Act (CPA) | July 7, 2021 | July 1, 2023 | The CPA gives consumers the right to opt-out of profiling in furtherance of automated decisions. It also requires a data protection assessment for activities that pose a “heightened risk of harm,” including targeted advertising and some types of profiling. |
Connecticut | Connecticut Data Privacy Act (CTDPA) | May 10, 2022 | July 1, 2023 | The CTPA gives consumers the right to opt-out of profiling in furtherance of automated decisions. It also requires a data protection assessment for activities that pose a “heightened risk of harm,” including targeted advertising and some types of profiling. |
New York City | Automated Employment Decision Tools | December 11, 2021 | January 1, 2023 | AEDT regulates the use of AI in hiring. It requires employers to notify candidates about the use of such tools, allows candidates to request what data is used, and requires an annual audit to evaluate the tool for bias. |
Virginia | Virginia Consumer Data Privacy Act (VCDPA) | March 2, 2021 | January 1, 2023 | The VCDPA gives consumers the right to opt-out of profiling in furtherance of automated decisions. It also requires a data protection assessment for activities that pose a “heightened risk of harm,” including targeted advertising and some types of profiling. |
Utah | Utah Consumer Privacy Act (UCPA) | March 24, 2022 | December 31, 2023 | The UCPA gives consumers the ability to opt-out of profiling using personal data. Notably, it does not require impact assessments for data controllers. |
Laws passed this legislative session
This legislative session, Montana, Indiana, Oregon, Tennessee, and Texas passed comprehensive consumer privacy laws that includes provisions regulating AI, mirroring laws that California, Colorado, Connecticut, and Virginia have previously passed. Most notably, the law (1) gives consumers the right to opt out of automated profiling and (2) mandates data protection assessments if the automated decision-making poses a heightened risk of harm. Iowa also passed a consumer privacy law, but it does not grant consumers the right to opt-out of profiling.
Other states have also passed more laws that specifically address AI, which are listed in the table below.
State | Name | Date passed | Date in effect | Description |
Arizona | Ballot Processing and Electronic Adjudication Limit (SB1565) | April 10, 2023 | N/A (governor veto) | Ballot processing would not be able to use AI or learning software. |
Connecticut | An Act Concerning Artificial Intelligence, Automated Decision-Making and Personal Data Privacy (S1103) | June 5, 2023 | Starting from July 1, 2023 | This law establishes an Office of Artificial Intelligence, protects children from targeted advertising, and establishes a task force to study AI and develop an AI Bill of Rights. |
Delaware | Delaware Personal Data Privacy Act (HB154) | June 30, 2023 | January 1, 2025 | This law allows consumers to opt-out of profiling in furtherance of automated decisions and requires a data protection assessment for activities that pose a “heightened risk of harm.” |
Georgia | HB203 | May 2, 2023 | July 1, 2023 | This law regulates automated eye assessments; among other things, automated eye assessments shouldn’t replace eye exams that are done in “real time.” |
Hawaii | SR123/SCR179 | April 2023 | April 2023 | This resolution warns against the unintended consequences of AI and urges Congress to discuss the benefits and risks of AI. |
Indiana | Indiana Data Privacy Act (SB5) | May 1, 2023 | January 1, 2026 | This law allows consumers to opt-out of profiling in furtherance of automated decisions and requires a data protection assessment for activities that pose a “heightened risk of harm.” |
Maryland | HB622 | May 8, 2023 | October 1, 2023 | This law establishes a grant program that funds small and medium-sized businesses that will implement “Industry 4.0 Technology,” which includes AI. |
Montana | Montana Consumer Data Privacy Act (SB 384) | April 21, 2023 | October 1, 2024 | This law allows consumers to opt-out of profiling in furtherance of automated decisions. It also requires a data protection assessment for activities that pose a “heightened risk of harm.” |
North Dakota | HB 1361 | April 12, 2023 | April 12, 2023 | This act amends the North Dakota Code to clarify that AI is not a person. |
Oregon | Oregon Consumer Privacy Act (SB619) | June 23, 2023 | July 1, 2024 | This act allows consumers to opt-out of profiling and requires a data protection assessment for some controllers that pose a “heightened risk of harm.” |
Tennessee | Tennessee Information Protection Act (SB0073) | May 11, 2023 | July 1, 2025 | This act allows consumers to opt-out of targeted advertising and profiling, and it requires data protection impact assessments for activities that pose a “heightened risk.” |
Texas | Texas Data Privacy and Security Act (HB4) | June 18, 2023 | July 1, 2024 | This act allows consumers to opt-out of targeted advertising and profiling, and requires data protection assessments for certain controllers. |
Texas | Artificial Intelligence Advisory Council (HB 2060) | June 13, 2023 | June 13, 2023 | This act creates an advisory council to study the effects of AI and report findings to the legislature. |
Laws proposed this legislative session
AI Regulation as part of Comprehensive Consumer Privacy Bills
Several states have proposed comprehensive consumer privacy bills, following in the footsteps of Colorado, California, Connecticut, and other states. These bills include provisions regulating AI that mirror those in other states’ privacy laws.
State | Name | Date introduced | Description |
Hawaii | Hawaii Consumer Data Protection Act (SB974 or SB1110/HB1497) | January 20, 2023 | This bill would allow users to opt-out of profiling that uses their personal data, and would require data protection assessments for processing activities posing a “heightened risk to consumers.” |
Illinois | Illinois Data Privacy and Protection Act (HB3385) | February 17, 2023 | This bill would regulate collection and processing of personal information through algorithms. |
Maine | Maine Data Privacy and Protection Act (HB1270) | May 19, 2023 | This bill prohibits discrimination through data processing, regulates targeted advertising, and requires an impact assessment for “high risk” algorithms. |
Massachusetts | Massachusetts Data Privacy Protection Act (MDPPA), Massachusetts Information Privacy Protection Act (MIPSA), and the Internet Bill of Rights (H.1555) | January 18- 20, 2023 | Three competing consumer privacy bills all would consumers the right to know about or opt-out of automated profiling, and require impact assessments for controllers engaged in automated decision making. |
Minnesota | Minnesota Consumer Data Privacy Act (HF2309/SF2915) | March 15, 2023 | This bill would allow consumers to opt-out of profiling and would require data protection assessments. |
New Hampshire | Consumer Data Privacy Act (SB255) | January 19, 2023 | This bill would allow consumers to opt-out of profiling and would require data protection assessments. |
New York | New York Privacy Act (SB365 or AB3593) | January 4 and February 3, 2023 | These alternative versions of a New York comprehensive privacy law give consumers more control over automated decisions used for profiling and require impact assessments. |
Pennsylvania | Consumer Data Protection Act (HB708) | March 27, 2023 | This bill would allow consumers to opt-out of profiling and would require data protection assessments. |
Rhode Island | Rhode Island Data Transparency and Privacy Protection Act (HB6236) | March 30, 2023 | This bill would allow consumers to opt-out of profiling and would require data protection assessments. |
Washington | People’s Privacy Act (SB5643/HB1616) | January 31, 2023 | This bill would restrict the use of AI profiling and facial recognition in public accomodations. |
AI Regulation to Prevent General Harms
Several states have proposed bills that guard against general harms of AI. All bills express concern for discrimination resulting from AI use. Some bills seem more concerned about harms within specific industries, like hiring, healthcare, voting, or insurance.
State/District | Name | Date introduced | Description |
California | Automated Decision Tools (AB 331) | January 30, 2023 | This bill would require impact assessments for automated decision making tools, and it would give consumers the right to request manual review for consequential decisions. Specifically, it expressed concern for decisions made in employment, education, housing, healthcare, utilities, family planning, financial services, and the criminal justice system. |
District of Columbia | Stop Discrimination by Algorithms Act (B25-0114) | February 2, 2023 | This bill would stop algorithms from making decisions based on individuals’ protected personal traits. |
New Jersey | S1402 | February 10, 2023 | This bill would make it unlawful for an automated decision system to discriminate against members of a protected class in loans, insurance, or healthcare settings. |
New York | Digital Fairness Act (S2277) | January 19, 2023 | This bill would require automated decision system impact assessments, prevent discriminatory practices with targeted advertising, and regulate the use of biometric data, among other provisions. |
Regulating AI in Employment Settings
Following in the footsteps of New York City, several states have proposed bills regulating AI use in employment settings, often around making hiring decisions.
State | Name | Date introduced | Description |
Illinois | HB 3773 | February 17, 2023 | This bill would restrict employers from using race, or zip code as a proxy for race, when making automated hiring decisions. |
Massachusetts | An Act Preventing a Dystopian Work Environment (H.1873) | February 16, 2023 | This bill would require employers to provide employees with notice about algorithmic decisions and monitoring. It would also give employees the right to request information processed through algorithms. |
New Jersey | A4909 | December 5, 2022 | This bill would require bias audits for automated decision tools used for hiring and would require employers to notify candidates that they were screened using an automated tool. |
New York | S5641/A567 | March 10, 2023 | This bill would amend labor law to include criteria for automated decision making tools. It would also require disparate impact analysis. |
New York | A7858 | July 7, 2023 | This bill would require employers to give notice to candidates if they use automated decision tools to make employment decisions. |
Vermont | H114 | January 25, 2023 | This bill would restrict the electronic monitoring of employees for employment-related decisions. |
Regulating AI in Healthcare
Expressing their skepticism that algorithms can make better decisions than medical professionals when it comes to healthcare, states have proposed bills that regulate the use of AI in physical and mental health services.
State | Name | Date introduced | Description |
California | AB1502 | February 17, 2023 | This bill would prevent healthcare providers using automated decision systems from discriminating based on race, color, national origin, sex, age, or disability. |
Illinois | HB1002 | January 11, 2023 | This bill would require that algorithms used to diagnose patients are certified and shown to achieve accurate results. It also would give patients the right to know that an algorithm diagnosed them, and opt-out of its use. |
Illinois | HB3338 | February 17, 2023 | This bill would prevent hospitals from adopting policies that prevent nurses from substituting their judgment for the automated recommendations of AI systems. |
Maine | SB656a | April 12, 2023 | This bill would prevent hospitals from adopting policies that prevent nurses from substituting their judgment for the automated recommendations of AI systems. |
Massachusetts | HB1974 | February 16, 2023 | This bill would require that AI used for mental health patients be pre-approved and monitored, and that patients would be informed about and must consent to AI use. |
Rhode Island | HB6285 | April 19, 2023 | This bill would require that AI used for mental health services be pre-approved, and that patients are informed about AI use and can opt for mental health treatment from a professional instead. |
Texas | HB4695 | March 10, 2023 | This bill would only allow mental health professionals to administer mental health care through AI, and requires that the mental health professional be available to monitor progress or communicate with the patient. |
Regulating AI in Insurance
Legislators have expressed concerns about AI decision-making in insurance contexts.
State | Name | Date introduced | Description |
New Jersey | A537 | January 11, 2022 | This bill would require automobile insurers using AI to provide documentation that shows a lack of discriminatory outcomes. |
New York | AB843 | January 11, 2023 | This bill would prevent automobile insurers from using factors like age, sex, marital status, sexual orientation, income level, or employment and education status to determine insurance rates. |
Rhode Island | H5734 | February 21, 2023 | This bill would prohibit unfair discrimination in the insurance context, requiring insurers using AI to provide data sources they use and conduct a risk management assessment. |
Regulating AI Used by the Government
Expressing their concern for bias in automated decision making used by state actors, states have proposed bills that would require government actors to follow responsible AI procurement and implementation practices. Several bills hold AI to a set of standards, but several others merely call for investigation of government AI use without implementing any regulations yet.
State | Name | Date introduced | Description |
California | A302 | January 26, 2023 | This bill would require the Department of Technology to take inventory of all high-risk automated decision systems used by state agencies. |
California | S398 | February 9, 2023 | This bill would require the Department of Technology to develop a research plan to investigate potential new uses of technology for the state, including “virtual assistants powered by AI.” |
California | California AI-ware Act (S313) | February 6, 2023 | This bill would require any state agency using generative AI to communicate to disclose to that person that the communication is through generative AI. |
Massachusetts | H64/S33 | February 16, 2023 | This bill would establish a State Commission on Automated Decision Making to investigate Massachusetts’s AI use. |
Missouri | H311 | January 4, 2023 | This bill would establish the Missouri State Technology Task Force which would investigate AI used by the state, among other technologies. |
New Jersey | SB3876 | May 22, 2023 | This bill would appoint an Artificial Intelligence Officer to oversee state agencies’ uses of AI. |
New York | A5309 | March 7, 2023 | This bill would require state units purchased products that use automated decision making to adhere to responsible AI standards. |
Rhode Island | S117 | February 1, 2023 | This bill would establish a commission to study and regulate the use of AI by the state government. |
Rhode Island | H6423 | May 19, 2023 | This bill requests that the government review the extent of automated decision making used by the state of Rhode Island and its impacts. |
Washington | S5356 | January 12, 2023 | This bill would require government agencies to follow responsible methods for procuring AI, assess the impacts of automated decision making systems they use, and conduct ongoing monitoring to uncover bias or discrimination. |
Regulating Generative AI
In addition to the California AI-ware Act (mentioned above) which regulates the government’s use of generative AI, the below bills also attempt to mitigate generative AI harms. Many focus on harms caused by AI-generated images or videos.
State | Name | Date introduced | Description |
Massachusetts | An Act drafted with the help of ChatGPT to regulate generative artificial intelligence models like ChatGPT (S.31) | February 16, 2023 | This bill would prohibit bias in generative AI models, and would require safeguards against plagiarism and consumer privacy protections for those using generative AI, as well as registration with the attorney general. |
New York | S6859/A216A | January 2, 2023 | This bill would require advertisers to disclosure their use of “synthetic media.” |
New York | A7106/S7592 | May 10, 2023 | This bill would require political communications to disclose the use of synthetic media. |
New York | A7634/S7422 | May 25, 2023 | This bill would prevent film production companies receiving production credit from using AI to replace actors in their productions. |
Pennsylvania | H1063 | April 28, 2023 | This bill would criminalize disseminating AI-generated sexually explicit images of people without their consent. |
Rhode Island | HB6286 | April 19, 2023 | This bill would hold generative AI models to certain operating standards, and it would require them to register with the attorney general. |
Bills to Increase Transparency and Understanding Around AI
Several states proposed bills that would track AI use or establish commissions to study AI’s effects. Many asked the commissions to recommend how to best regulate AI.
State | Name | Date introduced | Description |
California | S721 | February 16, 2023 | This bill would establish a California Interagency AI Working Group to deliver a report on AI. |
California | AB1282 | February 16, 2023 | This bill would establish a commission to report on the mental health risks associated with children’s use of social media and artificial intelligence. |
Illinois | H3563 | February 17, 2023 | This bill would establish a Generative AI and Natural Language Processing Task Force. |
Maryland | H1068 | February 10, 2023 | This bill would create a Commission on Responsible AI in Maryland. |
Maryland | H1034 | February 10, 2023 | This bill would establish an AI Impact Advisory Board. |
Nevada | S165 | February 16, 2023 | This bill would create an Emerging Technologies Task Force. |
New Jersey | A168 | January 11, 2022 | This bill would require a report on AI’s impact on the economy and workforce. |
New Jersey | A5150 | February 6, 2023 | This bill would require those applying for unemployment benefits to designate whether their job loss was related to automation or other technological advances. |
New Mexico | HM75/SM63 | February 28, 2023 | This bill requests that a task force convene to study automated decision making’s impact on children when those tools are used to analyze child abuse and neglect. |
New York | A4969/S6402 | February 27, 2023 | This bill would create a commission to study AI, robotics, and automation. |
New York | A7501 | May 25, 2023 | This bill would create an office of algorithmic innovation, which would create policies and standards that ensure AI is fair. |
New York | A7838 | July 7, 2023 | This bill would require a long-term study on the impacts of AI on the state’s workforce, and would deter AI from replacing state employees’ jobs. |
North Carolina | S460 | April 3, 2023 | This bill would establish a committee on automation and the workforce. |
Pennsylvania | HB49 | March 7, 2023 | This bill would create a registry of all businesses using AI in the state. |
Pennsylvania | HR170/SR143 | June 29, 2023 | This resolution urges the state to establish an advisory committee to investigate AI’s impacts on the state. |
Texas | H3633 | March 6, 2023 | This bill would establish a committee to decide whether to establish a program that would train individuals in the workforce on the use of AI. |
Other AI-related Bills
State | Name | Date introduced | Description |
Illinois | Anti-Click Gambling Data Analytics Collection Act (H2570) | February 15, 2023 | This bill would prevent data collection on gambling platforms that would be used to predict how a player might gamble. |
Pennsylvania | HB1380 | June 12, 2023 | Among other things, this bill would explicitly authorize using AI to determine eligibility or fraud for public benefits. |
Rhode Island | S0146 | February 1, 2023 | This bill would prohibit the use of AI in sports betting applications. |
South Carolina | SB404 | January 18, 2023 | This bill would prohibit targeted advertising using automated decision making for a user under 18. It would require the platform to perform age verification to ensure the user is 18 or older. |
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