AI - May 2024 Regulatory Report

In May, several bills introduced earlier in the year were successfully passed into law.
By
Rebecca Domm
Legal Researcher at Regology
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In May, several bills introduced earlier in the year were successfully passed into law, with significant developments in artificial intelligence (AI) regulation occurring in Utah and Colorado. Utah marked an important milestone by implementing its Comprehensive AI Bill, effective May 1, 2024. This legislation targets companies using generative AI technologies, imposing strict disclosure requirements, establishing accountability for AI-generated actions, and creating the Office of Artificial Intelligence Policy. These measures expand consumer protection laws to cover the use of synthetic data.

Legislative Trends

Following Utah's Comprehensive AI Bill, Colorado became the first state to pass legislation targeting high-risk AI systems. This legislation combats algorithmic discrimination and classifies certain AI systems as "high-risk," mandating transparency and precautionary measures to prevent bias, particularly in critical sectors such as employment, education, finance, and healthcare.

In other states, proactive measures were taken to address specific AI-related concerns. Arizona focused on the use of deepfakes in elections, enforcing clear disclosure requirements for AI-generated content and imposing penalties for non-compliance, with exceptions for satire and specific online services.

Maryland enacted laws to regulate law enforcement's use of facial recognition technology, mandate annual inventories of AI systems in state agencies, and expand laws concerning the exploitation of minors to include AI-generated content.

At the federal level, initiatives were introduced to bolster national security by limiting the export of military-grade AI systems. Additionally, various states proposed legislation covering chatbot accountability, algorithms in housing and rental regulations, media oversight, and AI's role in elections, demonstrating a comprehensive approach to AI governance nationwide.

Highlights of Enacted State Laws

Utah’s Comprehensive AI Bill Utah's SB 149, (03/13/2024)  Signed into law, Effective May 1, 2024: Imposes rules on companies using generative AI, including disclosure requirements and accountability for AI-generated actions. It establishes the Office of Artificial Intelligence Policy and amends consumer protection laws to include synthetic data.

Consumer Protections for Interactions with AI: Colorado SB 24-205 (05/13/2024) Signed into law. Effective date Feb.1, 2026. Requires developers and deployers of high-risk AI to prevent algorithmic discrimination, disclose information, and manage risks.

Elections: Arizona SB 1359 (05/29/2024) Signed into Law. Combats deepfake use in election campaigns by requiring clear disclosure of AI-generated content and imposing penalties for non-compliance, with exceptions for satire and certain online services.

New Committees: Tennessee HB 2325 (05/21/2024) Signed into Law. Establishes the Tennessee Artificial Intelligence Advisory Council to guide AI use in state government.

Public Safety: Maryland SB 0182 (05/16/2024) Signed into Law. Regulates law enforcement's use of facial recognition technology, restricting its admissible evidence, limiting its use to specific crimes, mandating oversight, training, disclosure, audits, civil actions, and annual reports.

Exploitation of Minors: Tennessee HB 2163 (05/03/2024) Signed into Law. Amends laws related to the sexual exploitation of children, expanding the definition of "material" to include computer-generated images from artificial intelligence.

Highlights of Bills Introduced in May

National Security and Export Controls: Federal 118 HR 8315 (5/08/2024) Introduced. Amends the “Export Control Reform Act of 2018,” empowering the BIS to restrict the export of military-grade AI systems that pose national security risks to adversaries.

AI Safety: Federal 118 S.4230 (05/01/2024) Introduced. Improving the tracking and management of security and safety incidents and risks related to artificial intelligence.

Cyberbullying and Deepfakes: Illinois HB 5848 (05/15/2024) Referred to Rules Committee. Amends the Illinois School Code to enhance bullying and cyberbullying prevention, requiring schools to implement anti-bullying policies and support victims.

Nonprofit Smart Tech Grants: New Jersey A.4363 (05/13/2024) Introduced. Creates the "New Jersey Equitable Nonprofit Security and Innovation Grant Program" to fund nonprofit organizations, including places of worship, for smart technology and AI system implementation to enhance security.

Weaponized Robots and Uncrewed Aircrafts: New York S.09439 (05/24/2024) Referred to Consumer Protection. Bans weaponized robots and uncrewed aircraft in New York, with exceptions for defense and technology development, requiring judicial authorization for law enforcement use, and imposing penalties for violations.

Chatbot Accountability and User Transparency: New York A.10494 (05/29/2024) Introduced. Holds large entities liable for misleading chatbot responses unless corrected within thirty days and mandates clear user notification of chatbot interaction, effective ninety days after enactment

Algorithms in Housing and Rental Regulations: New York A.10020 (05/01/2024) Introduced. Bans landlords from using certain algorithms to set rents, sharing tenant data without consent, and making non-compete agreements, effective ninety days after enactment for new leases.

AI Warning Mandates: New York A.10103 (05/28/2024) Referred to Science and Technology Assembly- Mandates warnings on generative AI systems for potential inaccuracies or inappropriate content, with penalties for non-compliance, effective ninety days after enactment.

Media Regulation and AI Oversight: New York S.09542 (05/16/2024) Introduced. Bans AI-produced newspapers or magazines without significant human oversight in New York, effective sixty days after enactment.

AI and Elections: North Carolina HB 1072 (05/24/24) Referred to Committee on Election Law. Requires disclaimers in AI-generated political ads, defining AI and ad types, specifying disclosure size and duration, and setting penalties for non-compliance as a Class 1 misdemeanor.

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