Direct answer
Several states require AI disclosure, but the scope differs sharply. Colorado's AI Act (SB 26-189, obligations from January 1, 2027) requires deployers to give consumers notice when automated decision-making technology is used in a consequential decision, plus a plain-language explanation after an adverse outcome. California's AI Transparency Act (SB 942, operative January 1, 2026) requires large generative-AI providers to offer an AI-detection tool and to watermark AI-generated content. Illinois HB-3773, effective January 1, 2026, requires notice to an employee when an employer uses AI for covered employment decisions; the enacted provision does not state a general applicant-notice duty. Separately, the Artificial Intelligence Video Interview Act requires notice, explanation, and consent before AI analyzes an applicant video interview. Connecticut SB-1103 governs state agencies' own AI use rather than private-sector consumer disclosure.
Applicable Regulations
On 2026-05-14 Governor Polis signed SB 26-189, which repeals and reenacts the Colorado AI Act (originally SB 24-205). The new law abandons the risk-management / annual-impact-assessment model and replaces it with a disclosure-and-notice framework governing "automated decision-making technology" (ADMT) that makes or substantially influences "consequential decisions" (education, employment, housing, financial services, insurance, healthcare, government services). The statute formally takes effect 2026-08-12 (no safety clause), but all substantive compliance obligations — for both deployers and developers — begin 2027-01-01, which is the operative date for regulated businesses; the Attorney General's implementing rules are also due by 2027-01-01. The AG has stated he will not enforce until the mandatory rulemaking process concludes.
Key Requirements
Interaction Notice Deployers must give clear notice at the point of interaction when a consumer interacts with an automated decision-making technology (ADMT)
Adverse-Outcome Disclosure Provide a plain-language explanation within 30 days of an adverse consequential decision made or substantially influenced by an ADMT
Data Correction Right Allow consumers to request correction of factually incorrect personal data used by the ADMT
Meaningful Human Review Provide meaningful human review and reconsideration after an adverse consequential decision
Developer Documentation Developers must supply technical documentation (intended uses, known harmful uses, training-data categories, known limitations and risks, and instructions enabling meaningful human review), notify deployers of material updates, and retain compliance records for 3+ years. Like all duties under the act, these obligations begin 2027-01-01
Effective: 2027-01-01
Public Act 23-16 — the enacted form of Connecticut SB-1103 (2023 session). Signed by Governor Ned Lamont on June 7, 2023, making Connecticut among the first states to impose oversight on state agency use of AI. Government-only scope: does NOT directly regulate private-sector AI. Requires state agencies to complete impact assessments before deploying AI systems, publish a public AI inventory, and submit annual reports to the joint standing consumer-protection committee. Sections 1–3 effective July 1, 2023; Section 4 effective October 1, 2023; Section 5 effective upon passage.
Key Requirements
State Agency AI Impact Assessments State agencies may not employ AI systems that have not undergone impact assessments or that result in unlawful discrimination or disparate impact against specified individuals or groups
Public AI Inventory All inventory reports detailing AI systems used by state agencies and the Judicial Department must be publicly accessible online, with the Department of Administrative Services making its inventories available on the state's open data site
Annual Consumer-Protection Report Annual report to the joint standing committee on consumer protection, due February 15 beginning 2025 and annually thereafter
Effective: 2023-07-01
Requires providers of large-scale generative AI systems (1 million+ monthly users) to make AI-generated content detectable through free public detection tools and embedded technical watermarks in image, video, and audio output. Signed September 19, 2024.
Key Requirements
Free AI Detection Tool Offer a free, publicly accessible tool allowing anyone to assess whether image, video, or audio content was created or altered by the provider's generative AI system
Manifest Disclosure Give users the option to attach a clear, conspicuous, human-readable disclosure on AI-generated content
Latent Technical Disclosure Embed technical metadata (provider name, system version, creation date, unique identifier) in AI-generated content, detectable by the provider's tool
Third-Party Licensee Enforcement Revoke licenses within 96 hours if a licensee disables disclosure capabilities
Effective: 2026-01-01
Amends the Illinois Human Rights Act (775 ILCS 5/) to prohibit employers from using artificial intelligence that has the effect of subjecting employees to discrimination based on protected classes, and from using zip codes as a proxy for protected classes. Requires employers to notify employees when AI is used in recruitment, hiring, promotion, discharge, discipline, or other terms and conditions of employment. Defines "artificial intelligence" and "generative artificial intelligence" for purposes of the Act.
Key Requirements
AI Discrimination Prohibition Cannot use AI that has the effect of subjecting employees to discrimination on the basis of protected classes identified under the Illinois Human Rights Act
Zip Code Proxy Ban Cannot use zip codes as a proxy for protected classes under the Illinois Human Rights Act
Employee Notice of AI Use Must provide notice to an employee that the employer is using AI for recruitment, hiring, promotion, discharge, discipline, or other employment-related decisions
Effective: 2026-01-01
Enacted 2019 (PA 101-260), effective 2020-01-01. Amended by PA 102-47 (effective 2022-01-01) to add DCEO demographic reporting. Regulates Illinois employers who use AI to analyze applicant video interviews. Requires notice, explanation of AI, and consent before analysis; limits video sharing; mandates 30-day deletion on applicant request; and requires annual demographic reporting to DCEO for employers that rely solely on AI video analysis to decide who advances to an in-person interview.
Key Requirements
Notice, Explanation, and Consent Before any AI analysis of a video interview, notify the applicant that AI may be used, explain how the AI works and what characteristics it evaluates, and obtain consent (Section 5)
Video Sharing Restrictions May share applicant videos only with individuals whose expertise or technology is necessary to evaluate the applicant's fitness (Section 10)
30-Day Deletion on Request Upon applicant request, employer must delete the video within 30 days and instruct all other recipients with copies or backups to delete them (Section 15)
Annual DCEO Demographic Reporting Employers that rely solely on AI video analysis to decide who advances must collect race/ethnicity data for applicants who are and are not offered in-person interviews and for applicants hired, then report annually to DCEO by December 31 (Section 20, added by PA 102-47)
Effective: 2020-01-01
Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. AI regulations and insurance policy terms change frequently. Consult with a qualified attorney or insurance professional for advice specific to your situation. Gridex makes no warranties regarding the accuracy or completeness of this information.