Bill > HB2592

This bill mandates that state agencies, referred to as "budget units," actively seek opportunities to use artificial intelligence (AI) systems to reduce administrative burdens, eliminate unnecessary regulations that hinder AI innovation, and streamline procurement processes for AI adoption. Agencies must also establish internal AI governance to ensure consistent and appropriate use, and review existing regulations for negative impacts on competition and innovation, modifying or removing those that create unreasonable barriers. When implementing AI, agencies should prioritize cost reduction and service improvement, avoid creating new regulations solely for the private sector, and use existing staff and resources. Crucially, budget units cannot adopt rules specifically regulating AI systems or computational resources (tools for computation and data processing) unless the legislature grants express statutory authority to address a specific harm, the rule is the least restrictive option, its benefits clearly outweigh impacts on innovation, and it doesn't create market entry barriers. Any emergency or temporary rules for AI must be approved by the legislature, requiring a ratifying vote within the first thirty days of a legislative session, with a simple majority needed for approval. Furthermore, by December 1st each year, the Director must submit an annual report detailing AI system implementation by budget units, including the system's function, measures of efficiency like reduced processing time or cost savings, and any encountered barriers, to the President of the Senate, Speaker of the House, and the Governor.

Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/84376