Virginia’s Legislature became the first in the U.S. this year to pass legislation regulating artificial intelligence systems deemed “high risk.” The High-Risk Artificial Intelligence Developer and Deployer Act establishes requirements for AI tools used in sectors such as education, employment, finance, and health care, mandating disclosures about risks and performance, and adherence to frameworks like NIST’s or ISO/IEC 42001. Though modeled after Colorado’s 2023 law, Virginia’s bill omits categories like public benefits and lacks requirements for public disclosures. Civil penalties could range from $1,000 to $10,000, with enforcement by the state’s attorney general. Stakeholders are divided: privacy advocates find loopholes that could exempt major industries, while tech lobbyists warn of stifled innovation.

Governor Glenn Youngkin has yet to reveal whether he will sign the bill, veto it, or return it with amendments — a decision expected by March 24. Despite tight margins in both chambers, the bill drew some last-minute support from businesses like Verizon. Its passage signals growing momentum among states to regulate AI as federal action stalls. With states like Connecticut and New Mexico reintroducing or drafting similar legislation, Virginia’s bill could become a pivotal case study for AI governance across the U.S., especially if amended when the legislature reconvenes on April 2.

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