Bill > SB2967

This bill establishes consumer protection requirements for the use of artificial intelligence (AI) systems in Hawaii, aiming to ensure accountability and prevent harm to consumers. It mandates that businesses, referred to as "deployers," must clearly disclose when consumers are interacting with an AI system, especially in customer-facing communications. For "consequential decisions" – those that significantly impact a consumer's access to housing, credit, insurance, employment, education, healthcare, or legal services – businesses using "high-risk AI systems" must provide consumers with notice that AI was involved, explain the primary factors influencing the decision, and inform them of their rights. Consumers will have the right to request corrections to inaccurate information used in these decisions, submit additional information for reconsideration, and receive a human review of any adverse action, meaning a denial or unfavorable change in a product or service. The bill also requires businesses to implement risk management programs and conduct impact assessments for high-risk AI systems to identify and mitigate potential harms like algorithmic discrimination (unfair treatment based on protected characteristics) or material errors. Furthermore, deployers must report significant violations or harms caused by AI systems to the Executive Director of the Office of Consumer Protection and the Attorney General, and any violation of these provisions will be considered an unfair or deceptive act or practice, subject to legal penalties.