A General Assembly committee has approved wide-ranging legislation restricting the use of artificial intelligence in the workplace.
The Labor and Public Employees Committee passed the bill on an 8-4 party line vote March 20, along with other costly employer mandates.
SB 1484 drastically limits AI in the workplace, requiring employers not only to inform employees about purpose of the technology’s use, but contract with a third party to conduct impact assessments for each system or program.
The legislation is one of many AI-related bills raised this session in a number of committees, including the Labor Committee, the Government Administration and Elections Committee, and the General Law Committee.
While the business community supports ensuring the ethical and responsible use of AI, SB 1484 poses potential cost increases and administrative burdens for employers.
Small Business Burden
The proposed mandate represents a particular burden for small employers that are adopting AI to benefit business operations and workforce development
CBIA’s Paul Amarone said one of the biggest concerns for employers was the bills provision requiring third party impact assessments of all AI use in the workplace.
Those assessments can cost thousands of dollars per review.
As currently written, the bill does not provide carveouts for small employers and requires businesses to spend significant resources each time a new AI system is implemented or expanded.
SB 1484 also grants the Labor Commissioner the ability to impose civil penalties on employers who do comply with the bill’s provisions.
“AI has already proved to be a valuable asset for businesses of all sizes,” Amarone told a March 11 Labor Committee hearing.
“Imposing these restrictions, added costs, and increased liability may lead to smaller businesses not utilizing AI, and in turn falling behind other businesses that may be in a position to incur the costs of complying with this bill.”
For more information, contact CBIA’s Paul Amarone (860.244.1978)