A last-minute agreement on Tuesday night to narrow the focus of a contentious AI regulation bill led to its bi-partisan approval in the Senate. However, this development still leaves open whether the modifications will be sufficient for Governor Ned Lamont’s support.

Senator James Maroney from Milford, who has established himself as the leading authority within the General Assembly on issues related to data privacy and artificial intelligence, chose not to make predictions about whether the modifications would be enough to prevent a potential veto.

Senate Bill 2

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“It is my hope,” stated Maroney, who serves as co-chair of the General Law Committee, from which the bill was initiated.

Up until Wednesday evening, the situation remained largely unchanged compared to 2024. That year, the Democrats maintained their majority in the Senate and managed to pass a comparable piece of legislation along party lines. However, it failed to move forward in the House due to lack of action, following pressure exerted by the governor.

The Republicans along with the Democratic governor were concerned that last year’s legislation might have been an overly hasty attempt to establish guidelines for AI development and usage. They worried it could potentially stifle innovation and deter investments.

Sen. Paul Cicarella of North Haven, the ranking Senate Republican on General Law, said the revised measure maintains significant consumer protections while limiting the exposure of developers and users to litigation.

“We want businesses to come to Connecticut, know that they’re welcome, know we’re going to be good to them and not put burdens on them, whether that comes in the form of regulations or comes in the form of fees,” Cicarella said.

With the revisions drafted by Maroney and co-sponsored by four Republican senators, SB 2 passed on a 32-4 vote shortly before midnight, with all 25 Democrats and seven of the 11 Republicans in support.

It remained uncertain whether these modifications would assure Lamont that government oversight wouldn’t hinder progress with artificial intelligence, which his top economic advisor compares to a second industrial revolution.

I simply fret over each state pursuing its individual approach, leading to a fragmented landscape of rules and regulations,” Lamont stated earlier on Wednesday. “With Connecticut potentially imposing more stringent and comprehensive measures compared to others, this raises questions about how such policies will impact AI advancement within the region.

According to the National Conference of State Legislatures, at least 550 pieces of the AI legislation have been filed this year in 45 states and Puerto Rico. Connecticut is one of eight states attempting comprehensive AI regulation, some modeled after the first-in-the-nation law passed last year in Colorado.

The Connecticut bill passed Wednesday night requires greater transparency about uses of AI and makes a crime of disseminating “deep-fake porn,” synthetically produced intimate photos of an actual person.

But the revisions strike a reference to “algorithmic discrimination.” That had been defined as “any use of an artificial intelligence system that results in any unlawful differential treatment or impact that disfavors” any protected class. It also exempts the use of AI in health care from the bill.

Artificial intelligence and algorithms are extensively employed to assess credit, job, and housing applications. There is evidence suggesting that certain algorithms disadvantage applicants whose names are perceived as “Black-sounding,” according to Maroney who addressed reporters shortly before the debate.

“There are real harms that are happening,” Maroney said.

Senator Gary Winfield from New Haven expressed disappointment over the removal of the algorithmic discrimination clause, stating that this was a crucial component for himself and fellow members of the Black and Puerto Rican Caucus.

“I’m voting for this bill, but let’s not fool ourselves. This bill has a glaring hole in it, and it’s the same hole that just about every policy we do in this building has, as a whole,” Winfield said. “But broken people and broken lives are often the cost of business. I just hope we don’t break too many people’s lives.”

Sen. Tony Hwang, R-Fairfield, one of the four senators to oppose the bill, said even with the changes it was premature, rushed and overreaching.

“I am wholly supportive of AI and technology innovation, but it is a technology and innovation in which we need to watch and nurture, not try to watch and over regulate, because it will hurt our businesses,” Hwang said. “We don’t need to be the first. We need to be the best.”

“This has never been about being first,” Maroney replied. “We do want to be a leader. This is about protecting our residents, promoting the responsible use of AI, and making us a leader in efficient governance, as well as supporting our residents and giving them the skills they need to succeed in the modern economy.”

The other no votes were cast by Sens. Eric Berthel of Watertown, Ryan Fazio of Greenwich and Rob Sampson of Wolcott.

Senate President Pro Tem Martin M. Looney, D-New Haven, and Senate Majority Leader Bob Duff, D-Norwalk, staged a press conference with Maroney prior to the debate to underscore that SB 2 was a priority of their caucus.

“We are ever more concerned about the wonderful possibilities of AI, but also the severe threats of AI,” Looney said.

Duff noted that not only do congressional Republicans have no appetite for federal regulation of AI, but they are proposing a 10-year moratorium on the states doing so. The Trump administration also has discouraged AI regulation.

“Now, it’s like the Wild West,” Duff stated.