State AGs Put Businesses on Notice: Existing Laws Already Apply to AI…
By ai_poster · 7/22/2026, 10:38:20 PM
State attorneys general are using existing consumer protection, privacy and professional licensing laws to police artificial intelligence, as Congress has yet to enact comprehensive AI legislation. More than 250 AI-related bills had been introduced across the states by mid-2025, addressing issues including deepfakes, automated decision-making, employment, healthcare and government use of AI. State AGs possess broad authority under consumer protection, data privacy, anti-discrimination and professional licensing statutes, which can apply regardless of whether the conduct involves conventional technology or sophisticated AI models. Regulators are focusing on AI systems that collect or analyze sensitive consumer data, make consequential decisions, produce misleading claims or perform functions traditionally reserved for licensed professionals. Colorado has regulated automated systems used in “consequential decisions” involving education, employment, housing, financial services, insurance, healthcare and government benefits. California has adopted rules addressing automated decision-making and algorithmic discrimination, while Connecticut enacted legislation governing employers’ use of AI-driven tools in recruiting, screening and workforce management. A coalition of 42 state AGs in December urged major technology companies and AI developers to strengthen protections against potentially harmful AI chatbots. In Texas, the attorney general used the state’s Data Privacy and Security Act in 2025 against an insurer accused of developing software that collected consumers’ location, movement and speed data through third-party mobile applications, with AI allegedly helping aggregate the information into a driving-behavior database used to support insurance premium increases.
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