Bill > H0341

This bill establishes comprehensive oversight and safety standards for developers and deployers of inherently dangerous artificial intelligence (AI) systems in Vermont, creating a robust regulatory framework to mitigate potential risks. The legislation defines several key types of AI systems, including high-risk, generative, and dual-use foundational models, and requires developers and deployers to conduct thorough safety and impact assessments before deploying such systems. The bill mandates that AI developers and deployers exercise reasonable care to prevent potential harm, including risks of discrimination, crime, psychological injury, and privacy violations. A new Division of Artificial Intelligence within the Agency of Digital Services will collect and review these assessments, while the Attorney General will have enforcement powers, including the ability to issue civil investigative demands and seek injunctions against non-compliant entities. Consumers harmed by violations will have a private right of action to seek damages, and the law includes protections for small businesses and exceptions for certain research and contractual activities. The bill applies to businesses that are not small businesses and either conduct business in Vermont or develop/deploy high-risk AI systems in the state, with an effective date of July 1, 2025, signaling a proactive approach to regulating the rapidly evolving AI technology landscape.

Business and Industry

https://legislature.vermont.gov/bill/status/2026/H.341