WHAT THIS BILL REGULATES · 5 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(A) 1 An artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1) shall conduct a comprehensive risk assessment for each of the business's high risk AI systemsHigh risk AI system"High risk AI system" means an artificial intelligence system that: (a) May impact children, health care, employment, public safety or education. (b) Is likely to cause discrimination, bias or significant privacy violations.A.R.S. § 44-1383(K)(3) before using or selling a high risk AI systemHigh risk AI system"High risk AI system" means an artificial intelligence system that: (a) May impact children, health care, employment, public safety or education. (b) Is likely to cause discrimination, bias or significant privacy violations.A.R.S. § 44-1383(K)(3).
(B) 1 An artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1) shall evaluate a high risk AI systemHigh risk AI system"High risk AI system" means an artificial intelligence system that: (a) May impact children, health care, employment, public safety or education. (b) Is likely to cause discrimination, bias or significant privacy violations.A.R.S. § 44-1383(K)(3) for all of the following: 1. The potential for discrimination or bias. 2. Any safety risks to children and vulnerable populations. 3. Any privacy and data protection risks. 4. Assessing catastrophic risks.
(C) 2 An artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1) shall submit a transparency report to the attorney general before using or selling a high risk AI systemHigh risk AI system"High risk AI system" means an artificial intelligence system that: (a) May impact children, health care, employment, public safety or education. (b) Is likely to cause discrimination, bias or significant privacy violations.A.R.S. § 44-1383(K)(3). The transparency report must include all of the following: 1. The purposes and operation of the artificial intelligence system. 2. The results from any internal risk assessment evaluations. 3. The measures that were implemented to mitigate bias and harmful outcomes.
(D) 3 The transparency reports shall be publicly posted on the artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1)'s website.
(E) 4 An artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1) shall implement bias mitigation measures that include any technical or procedural methods that were implemented to reduce discriminatory outcomes.
(F) 5 An artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1) shall conduct a quarterly audit to identify and correct any instances of discrimination, harmful outputs or unsafe behavior.
(G) 6 If a high risk AI systemHigh risk AI system"High risk AI system" means an artificial intelligence system that: (a) May impact children, health care, employment, public safety or education. (b) Is likely to cause discrimination, bias or significant privacy violations.A.R.S. § 44-1383(K)(3) may be accessed by a child, the artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1) shall include parental monitoring tools, content filtering and mechanisms to report harmful content.
(H) 7 The attorney general shall issue a certification before an artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1) enters the stream of commerce.
(I) The attorney general shall enforce this section and review the transparency reports for compliance with this section. The attorney general may impose a civil penalty of not more than $50,000 per violation for a violation of this section. Each day a violation occurs constitutes a separate violation.
(J) An artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1) that implements recognized standards for and complies with the children's online privacy protection act of 1998 (P.L. 105-277) advisory services may receive a reduced civil penalty for inadvertent violations.
(K) For the purposes of this section: 1. "Artificial intelligence businessArtificial intelligence business"Artificial intelligence business" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developer.A.R.S. § 44-1383(K)(1)" means an entity that creates, uses, sells or provides access to artificial intelligence systems that interact with the public and that uses a frontier model of artificial intelligence that is owned or operated by a large developerLarge developer"Large developer": (a) Means a person or entity that has trained one or more frontier models and has spent more than $5,000,000 in developing the frontier model and more than $100,000,000 in training the frontier model. (b) Does not include an accredited college or a university that engages in academic research involving frontier models. (c) Creates a foreseeable and material risk that a large developer's development, storage or deployment of a foundation model will result in the death of or serious injury to more than one hundred people by an incident of either of the following: (i) Creating and releasing a chemical, biological, radiological or nuclear weapon. (ii) Through the use of a foundation model, engaging in conduct that is performed with limited human intervention and, if the conduct was committed by an individual, would constitute a crime that requires intent, recklessness or gross negligence or the solicitation or aiding and abetting of a crime.A.R.S. § 44-1383(K)(4). 2. "Frontier modelFrontier model"Frontier model" means an artificial intelligence model that is trained by either of the following: (a) Using greater than 10.26 computational operations to compute costs of more than $100,000,000. (b) Applying knowledge distillation to a frontier model.A.R.S. § 44-1383(K)(2)" means an artificial intelligence model that is trained by either of the following: (a) Using greater than 10.26 computational operations to compute costs of more than $100,000,000. (b) Applying knowledge distillation to a frontier modelFrontier model"Frontier model" means an artificial intelligence model that is trained by either of the following: (a) Using greater than 10.26 computational operations to compute costs of more than $100,000,000. (b) Applying knowledge distillation to a frontier model.A.R.S. § 44-1383(K)(2). 3. "High risk AI systemHigh risk AI system"High risk AI system" means an artificial intelligence system that: (a) May impact children, health care, employment, public safety or education. (b) Is likely to cause discrimination, bias or significant privacy violations.A.R.S. § 44-1383(K)(3)" means an artificial intelligence system that: (a) May impact children, health care, employment, public safety or education. (b) Is likely to cause discrimination, bias or significant privacy violations. 4. "Large developerLarge developer"Large developer": (a) Means a person or entity that has trained one or more frontier models and has spent more than $5,000,000 in developing the frontier model and more than $100,000,000 in training the frontier model. (b) Does not include an accredited college or a university that engages in academic research involving frontier models. (c) Creates a foreseeable and material risk that a large developer's development, storage or deployment of a foundation model will result in the death of or serious injury to more than one hundred people by an incident of either of the following: (i) Creating and releasing a chemical, biological, radiological or nuclear weapon. (ii) Through the use of a foundation model, engaging in conduct that is performed with limited human intervention and, if the conduct was committed by an individual, would constitute a crime that requires intent, recklessness or gross negligence or the solicitation or aiding and abetting of a crime.A.R.S. § 44-1383(K)(4)": (a) Means a person or entity that has trained one or more frontier modelsFrontier model"Frontier model" means an artificial intelligence model that is trained by either of the following: (a) Using greater than 10.26 computational operations to compute costs of more than $100,000,000. (b) Applying knowledge distillation to a frontier model.A.R.S. § 44-1383(K)(2) and has spent more than $5,000,000 in developing the frontier modelFrontier model"Frontier model" means an artificial intelligence model that is trained by either of the following: (a) Using greater than 10.26 computational operations to compute costs of more than $100,000,000. (b) Applying knowledge distillation to a frontier model.A.R.S. § 44-1383(K)(2) and more than $100,000,000 in training the frontier modelFrontier model"Frontier model" means an artificial intelligence model that is trained by either of the following: (a) Using greater than 10.26 computational operations to compute costs of more than $100,000,000. (b) Applying knowledge distillation to a frontier model.A.R.S. § 44-1383(K)(2). (b) Does not include an accredited college or a university that engages in academic research involving frontier modelsFrontier model"Frontier model" means an artificial intelligence model that is trained by either of the following: (a) Using greater than 10.26 computational operations to compute costs of more than $100,000,000. (b) Applying knowledge distillation to a frontier model.A.R.S. § 44-1383(K)(2). (c) Creates a foreseeable and material risk that a large developerLarge developer"Large developer": (a) Means a person or entity that has trained one or more frontier models and has spent more than $5,000,000 in developing the frontier model and more than $100,000,000 in training the frontier model. (b) Does not include an accredited college or a university that engages in academic research involving frontier models. (c) Creates a foreseeable and material risk that a large developer's development, storage or deployment of a foundation model will result in the death of or serious injury to more than one hundred people by an incident of either of the following: (i) Creating and releasing a chemical, biological, radiological or nuclear weapon. (ii) Through the use of a foundation model, engaging in conduct that is performed with limited human intervention and, if the conduct was committed by an individual, would constitute a crime that requires intent, recklessness or gross negligence or the solicitation or aiding and abetting of a crime.A.R.S. § 44-1383(K)(4)'s development, storage or deployment of a foundation model will result in the death of or serious injury to more than one hundred people by an incident of either of the following: (i) Creating and releasing a chemical, biological, radiological or nuclear weapon. (ii) Through the use of a foundation model, engaging in conduct that is performed with limited human intervention and, if the conduct was committed by an individual, would constitute a crime that requires intent, recklessness or gross negligence or the solicitation or aiding and abetting of a crime.
Section 44-1383 is the sole operative section of the bill, establishing a comprehensive pre-market and ongoing compliance regime for AI businesses that use frontier models owned or operated by large developers. The section requires pre-market risk assessments for each high-risk AI system, submission of transparency reports to the Attorney General, public posting of those reports, implementation of bias mitigation measures, and quarterly audits for discrimination and harmful outputs. When a high-risk system may be accessed by a child, the business must provide parental monitoring tools, content filtering, and harmful-content reporting mechanisms.
Enforcement is concentrated in the Attorney General, who must certify each AI business before it enters the stream of commerce and may impose civil penalties of up to $50,000 per violation per day. A reduced-penalty safe harbor is available for inadvertent violations by entities that comply with COPPA. The definitions in subsection (K) scope coverage narrowly to entities using frontier models owned or operated by large developers, with the frontier model compute threshold and the large developer risk criterion raising significant interpretive questions.