John B. Quinn, the founder of Quinn Emanuel Urquhart & Sullivan LLP, leads the world’s largest law firm specializing in business litigation. Despite calls for AI regulation at the federal level in the US, it seems that legislation on artificial intelligence may not be imminent. However, individual states have taken the lead in creating laws to regulate AI. Colorado recently implemented the nation’s first comprehensive framework for regulating high-risk AI systems, focusing on preventing algorithmic discrimination. This legislation could set the tone for future regulations in other states.
States are also addressing the use of AI in law enforcement and government decision-making processes. Several states have passed laws requiring warrants for the use of facial recognition technology by police, citing privacy and civil liberties concerns. Government agencies’ increasing reliance on AI has led states to regulate decision-making processes to prevent biases and ensure transparency. Alabama, California, and Washington have established commissions to recommend best practices for AI use in government settings.
AI’s impact on employment decisions has led to regulations in certain states to ensure fairness in hiring practices. Illinois and Maryland have passed laws requiring employers to notify and obtain consent from job applicants before using AI to analyze interview responses. In healthcare, states like New Jersey have introduced legislation to regulate AI’s role in medical decision-making to prevent discrimination and ensure transparency and accountability.
Efforts to prevent AI-enabled discrimination in insurance practices are also underway in various states. New York recently prohibited insurers from using AI to set auto insurance rates based on factors like education or occupation, citing concerns about algorithmic bias. Similarly, Colorado’s Privacy Act allows consumers to opt out of the use of AI in insurance practices. States are also considering regulations on social media platforms using AI-driven content curation and targeted advertising, as well as in online gambling to ensure data security and privacy.
States are also addressing the proliferation of deepfake technology, with laws enacted to prohibit political deepfakes intended to influence elections. Legislation has also been introduced to prohibit the creation and dissemination of nonconsensual deepfake pornography. Additionally, recent state consumer data privacy laws impact the use of AI technology, giving consumers the right to know, correct, delete, and obtain copies of their personal information, with opt-out rights related to automated decision-making technology.
Overall, businesses using AI will face a growing number of state regulations, even without comprehensive federal legislation. It is important for companies to stay informed of evolving state laws and consult with legal counsel to ensure compliance with AI regulations. The information provided here is not legal advice, and businesses should seek guidance from an attorney on specific legal matters related to AI regulation.
