New AI legislation mandates transparency for adverse consumer decisions by 2026

Connecticut's Senate Bill 2 is set to reshape the landscape of artificial intelligence regulation, focusing on high-risk AI systems that impact consumer decisions. Introduced on April 9, 2025, the bill mandates transparency and accountability from deployers of these technologies, particularly when their decisions adversely affect consumers.

Starting October 1, 2026, companies using high-risk AI to make significant decisions must disclose the reasons behind any negative outcomes. This includes detailing how the AI contributed to the decision, the data it processed, and the sources of that data. Consumers will also have the right to access their personal data used in these decisions and correct any inaccuracies. Notably, the bill allows consumers to appeal adverse decisions based on incorrect data, with provisions for human review where feasible.

The bill has sparked considerable debate among lawmakers and industry stakeholders. Proponents argue it is a necessary step to protect consumer rights in an increasingly automated world, while opponents raise concerns about the potential burden on businesses and the feasibility of implementing such regulations.

Experts suggest that if passed, Senate Bill 2 could set a precedent for AI governance, influencing similar legislation across the nation. The implications are significant: as AI systems become more integrated into daily life, ensuring consumer protection and data accuracy will be paramount. The bill's progress will be closely watched, as it could herald a new era of accountability in the tech industry.