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Bill would create AI division inside DIR to use generative AI for legacy modernization; committee leaves bill pending

3406771 · May 20, 2025

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Summary

A committee substitute to House Bill 2818 would establish an artificial intelligence division at the Department of Information Resources to pilot and oversee agency uses of generative AI for legacy modernization, require cost-analysis reporting for projects, and permit DIR to use procured or contracted AI solutions.

Senators considered a committee substitute to House Bill 2818 that would establish an artificial-intelligence division within the Department of Information Resources to support state agencies in using generative AI for legacy modernization and other projects.

Sponsor Senator Parker described the substitute as enabling “efficient use of resources” by requiring DIR to coordinate implementation and information sharing, allow the division to use AI tools procured or developed by the department or to contract with external vendors (provided an AI solution performs a majority of the work), and require a project-level cost analysis explaining time and money saved by AI versus traditional methods.

The division would select projects it believes are suitable for AI-assisted modernization; not every agency project would be shifted to the new division. Parker said the measure aims to accelerate modernization and reduce cost. The chair opened the hearing for public testimony, received comments from a DIR resource witness and closed the testimony; the committee left HB 2818 pending for additional work on implementation and oversight language.