Growing up in Litchfield, I saw firsthand the spirit of innovation that defines Connecticut. My dad was an enthusiastic early tech adopter, which meant that our house was always ahead of the curve, starting from the era of the VCR.
That interest in innovative tech also extended to investments in the small manufacturing facility my dad ran with his brother. I know how important small businesses like theirs are for cities and towns across the state, which is why I’m so concerned about the impact of proposed new legislation on artificial intelligence (AI).
As AI’s influence and applications grow, it’s no surprise to see lawmakers at every level jump to respond. As they should! AI is one of the most transformative technologies of our time. Thousands of businesses across the U.S. are leveraging AI to transform sectors like education, disability access and health care. The AI boom is also boosting the economy. In Connecticut alone, companies posted nearly 9,000 AI-focused jobs in 2022.
The immense potential of AI makes effective regulation especially important. Unfortunately, Connecticut’s 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 curbing innovation and hindering economic growth, both in Connecticut and beyond.
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The bill’s extensive disclosure mandates — focused on deployers of high-risk AI systems — would make it harder to protect sensitive business information. More, SB 2’s impossibly vague requirement that developers eliminate “known or reasonably foreseeable” risks creates huge uncertainty. What is “reasonably foreseeable” in a technology field evolving so quickly? This legislation will leave developers guessing and — if the Attorney General decides they’ve gotten it wrong — could expose Connecticut entrepreneurs to costly lawsuits.
AI regulation at the state level would also create a patchwork of conflicting rules and regulations for businesses operating across state lines — as is true of essentially every AI company. That would mean that a Connecticut company would need to understand and comply with one set of regulations when selling in Hartford, and another set when selling just 70 miles away in Providence, Rhode Island. That complexity will magnify if other states begin to adopt their own legislation. While navigating this minefield might be possible for big companies, a state-by-state approach creates huge 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 is harnessing AI to deliver precision medicine or BioXcel, delivering AI-led treatments in neuroscience and immuno-oncology — we need to remove roadblocks rather than add them.
Of course, that doesn’t mean avoiding AI regulation. Regulations barring deepfakes that target individuals and protecting the integrity of our elections are important first steps. More broadly, businesses of all sizes could benefit from clear rules of the road, established at the federal level to apply uniformly across the United States.
Luckily, that effort is already well underway. The U.S. Senate, led by Majority Leader Chuck Schumer, held a recent series of AI ‘Insight Forums’ with leaders from industry and government. Legislators agree on the need for action to create clear guidelines and standards for how companies collect, use and share data. In fact, already-introduced federal AI legislation would provide much-needed clarity for businesses, while fostering trust among users of AI systems. Encouraging Connecticut’s representatives in Washington to get that legislation across the finish line should be a top priority.
AI regulation must strike a balance between promoting innovation and protecting consumers from potential harm. Proposals like SB 2, while well-intentioned, will make it harder for small businesses to innovate in AI. Ultimately, that means Americans will miss out on some of the transformative benefits AI has to offer.
Rather than pushing ahead with SB 2, Connecticut legislators should promote the state as an economic and innovation hub by advocating for the federal-level AI regulation that will truly help Connecticut startups and small businesses thrive.
Michael Petricone is Senior Vice President of Government and Regulatory Affairs
of the Consumer Technology Association.