Growing up in Litchfield, I saw firsthand the spirit of innovation that defined Connecticut. My father was an avid technology early adopter. In short, since the days of VCRs, our family has always been ahead of the curve.
That interest in innovative technology extended to investing in a small manufacturing facility that his father ran with his brother. I know how important small businesses like theirs are to cities and towns across the state. That's why I'm so concerned about the impact of the proposed new legislation on artificial intelligence (AI).
As the influence and applications of AI grow, it's no surprise that lawmakers at all levels are jumping in to respond. That's how it should be! AI is one of the most innovative technologies of modern times. Thousands of companies across the United States are leveraging AI to transform sectors such as education, disability access, and healthcare. The AI boom is also boosting the economy. In Connecticut alone, companies have posted about 9,000 AI-specific jobs in 2022.
The immense potential of AI makes effective regulation particularly important. Unfortunately, Connecticut Senate Bill 2 (SB 2), while well-intentioned, takes a local approach to a complex national policy issue. By imposing new requirements on AI developers, SB 2 risks stifling innovation and hindering economic growth both within and outside of Connecticut.
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The bill's broad disclosure requirements (focused on implementers of high-risk AI systems) would make it even more difficult to protect sensitive business information. Additionally, SB 2's impossibly vague requirement that developers eliminate “known or reasonably foreseeable” risks creates significant uncertainty. What is “reasonably foreseeable” in such a rapidly evolving technology field? This bill leaves developers guessing, and if the attorney general determines they were wrong, the Connecticut Entrepreneurs in the state could be exposed to costly lawsuits.
Regulation of AI at the state level, which essentially applies to all AI companies, creates a patchwork of conflicting rules and regulations for companies operating across state lines. This means that a Connecticut business must understand and comply with one regulation when selling in Hartford, and another when selling in Providence, Rhode Island, just 110 miles away. This means that you need to comply. The complexity will increase further as other states begin to adopt their own laws. While larger companies may be able to navigate this minefield, a state-by-state approach poses significant compliance hurdles for small businesses and startups, which typically have limited resources.
If we want to encourage more AI innovators in Connecticut, like Sema4, which leverages AI to deliver precision medicine, and BioXcel, which provides AI-driven treatments in neuroscience and immuno-oncology, why not add obstacles? Instead, it needs to be removed.
Of course, that doesn't mean circumventing AI regulations. Regulations to ban personally targeted deepfakes and protect election integrity are important first steps. More broadly, businesses of all sizes can benefit from clear rules of the road established at the federal level and applied uniformly across the United States.
Fortunately, that effort is already well underway. The U.S. Senate, led by Majority Leader Chuck Schumer, recently held an AI “Insights Forum” series with industry and government leaders. Lawmakers agree on the need for action to create clear guidelines and standards for how companies collect, use and share data. Indeed, federal AI legislation already in place will provide much-needed clarity to businesses while promoting trust among users of AI systems. Encouraging Connecticut legislators in Washington to follow through with this bill is a top priority.
AI regulation must strike a balance between fostering innovation and protecting consumers from potential harm. Proposals like SB 2, while well-intentioned, will make it difficult for small businesses to innovate with AI. Ultimately, that means Americans will miss out on some of the transformative benefits that AI will bring.
Rather than pushing SB 2, Connecticut lawmakers should advocate for federal AI regulations that truly help startups and small businesses in Connecticut thrive and promote the state as an economic and innovation hub. Should.
Michael Petricone is Senior Vice President of Government and Regulatory Affairs
Consumer Technology Association.