Bill > S0963

This bill, titled the "Consumer Protections in Interactions with Artificial Intelligence Systems Act," aims to safeguard South Carolina residents from potential harm caused by artificial intelligence (AI) systems, particularly those deemed "high-risk." A "high-risk artificial intelligence system" is defined as any AI system that significantly influences or makes important decisions about a consumer's life, such as in education, employment, finance, housing, or healthcare. The bill prohibits "algorithmic discrimination," which means unfair treatment or negative impact on individuals or groups based on protected characteristics like age, race, sex, or disability, stemming from the use of these high-risk AI systems. Developers of such systems must exercise reasonable care to prevent algorithmic discrimination and provide detailed documentation to those who use their AI systems (deployers), including information about data used, potential risks, and how the system should be used. Deployers, in turn, must implement risk management policies, conduct impact assessments to identify and mitigate discrimination risks, and notify consumers when they are interacting with an AI system and when a high-risk AI system is used in consequential decisions affecting them, especially if the decision is adverse. The Attorney General is granted exclusive authority to enforce this chapter, with violations considered unfair trade practices, though the bill outlines specific affirmative defenses and clarifies that it does not create a private right of action for consumers.