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Connecticut AI Advisory: Modernizing Old Laws with New Tools | Sheppard Mullin

Connecticut’s attorney general issued an advisory to remind businesses that existing state laws already regulate the use of artificial intelligence. This step aligns with similar guidance recently released by Oregon and New Jersey in late 2024 and early 2025, which similarly emphasized that current laws are applicable to AI usage. The advisory from Connecticut highlights four key legal areas that enterprises should consider when employing AI: civil rights, privacy, consumer protection, and antitrust.

  • Civil Rights: The advisory underscores that Connecticut’s anti-discrimination laws are applicable whether decisions are made by human beings or through algorithms. For instance, if AI contributes to discriminatory practices in hiring or housing, existing legislation allows for investigations and enforcement by the attorney general. This principle extends to discrimination within the credit, insurance, and healthcare sectors, as well as in education and public accommodations.
  • Privacy: Regarding privacy, the advisory reminds businesses that the Connecticut Data Privacy Act mandates data minimization and requires clear, comprehensible notifications. Consent is also necessary for processing sensitive data. Furthermore, the advisory indicates that the act might necessitate data protection assessments when AI is utilized for profiling or any automated processes that may pose a significant risk of harm to consumers. Lastly, Connecticut’s data breach notification law applies if an AI system processes or stores personal information that is compromised in a reportable security breach.
  • Consumer Protection: The advisory provides specific AI-related scenarios demonstrating how the Connecticut Unfair Trade Practices Act could apply. Examples include making false claims about AI capabilities or deploying AI-generated content to mislead consumers regarding endorsements or affiliations.
  • Antitrust: The Connecticut attorney general specifies how the Connecticut Antitrust Act will govern practices involving AI-driven pricing and market strategies, such as employing algorithms to manipulate prices or allocate markets.

Implementation Reminder: This advisory serves as a further indication that states are serious about the investigation and enforcement of existing laws in the realm of AI. Businesses should keep these guidelines in mind when developing processes for vetting AI tools.

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