WHAT THIS BILL REGULATES · 3 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)–(O) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (B) "ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B)" MEANS AN ENGINEERED OR MACHINE–BASED SYSTEM WITH VARYING LEVELS OF AUTONOMY THAT CAN, FOR EXPLICIT OR IMPLICIT OBJECTIVES, INFER FROM THE INPUTS IT RECEIVES HOW TO GENERATE OUTPUTS THAT CAN INFLUENCE PHYSICAL OR VIRTUAL ENVIRONMENTS. (C) "CONSEQUENTIAL DECISIONConsequential decision"Consequential decision" means a decision that has a legal or similarly significant effect on an individual's access to the criminal justice system, housing, employment, credit, education, health care, or insurance.Md. Code, Cts. & Jud. Proc. § 3–2701(C)" MEANS A DECISION THAT HAS A LEGAL OR SIMILARLY SIGNIFICANT EFFECT ON AN INDIVIDUAL'S ACCESS TO THE CRIMINAL JUSTICE SYSTEM, HOUSING, EMPLOYMENT, CREDIT, EDUCATION, HEALTH CARE, OR INSURANCE. (D) (1) "DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D)" MEANS A PERSONPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M), INCLUDING A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E), THAT USES OR OPERATES AN ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) FOR USE BY THE DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) OR THIRD PARTIES. (2) "DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D)" DOES NOT INCLUDE AN INDIVIDUAL OR SMALL BUSINESS THAT HAS FEWER THAN: (I) 20 EMPLOYEES; OR (II) 10,000 USERS OF ITS PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N). (E) (1) "DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E)" MEANS A PERSONPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M) THAT DESIGNSDesign"Design" means the intended or known physical and material characteristics of a product, including: (1) any intended or known formulation or content of the product; and (2) the usual result of the intended method of development or other process used to produce the product, including unexpected skills or behaviors that appear in a product.Md. Code, Cts. & Jud. Proc. § 3–2701(F), CODES, PRODUCES, OWNS, OR SUBSTANTIALLY MODIFIES AN ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) FOR USE BY A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) OR FOR USE BY THIRD PARTIES. (2) "DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E)" DOES NOT INCLUDE A PERSONPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M) THAT USES AN OPEN SOURCE ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) AND DOES NOT SUBSTANTIALLY MODIFY THE ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B). (F) "DESIGNDesign"Design" means the intended or known physical and material characteristics of a product, including: (1) any intended or known formulation or content of the product; and (2) the usual result of the intended method of development or other process used to produce the product, including unexpected skills or behaviors that appear in a product.Md. Code, Cts. & Jud. Proc. § 3–2701(F)" MEANS THE INTENDED OR KNOWN PHYSICAL AND MATERIAL CHARACTERISTICS OF A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), INCLUDING: (1) ANY INTENDED OR KNOWN FORMULATION OR CONTENT OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N); AND (2) THE USUAL RESULT OF THE INTENDED METHOD OF DEVELOPMENTMethod of development"Method of development" means the selection of training data for the product, including the training, testing, auditing, and fine–tuning of the product.Md. Code, Cts. & Jud. Proc. § 3–2701(L) OR OTHER PROCESS USED TO PRODUCE THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), INCLUDING UNEXPECTED SKILLS OR BEHAVIORS THAT APPEAR IN A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N). (G) "EXPRESS WARRANTYExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including a sample or model of a product.Md. Code, Cts. & Jud. Proc. § 3–2701(G)" MEANS ANY MATERIAL, POSITIVE STATEMENT, AFFIRMATION OF FACT, PROMISE, OR DESCRIPTION RELATING TO A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), INCLUDING A SAMPLE OR MODEL OF A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N). (H) "GENERATIVE ARTIFICIAL INTELLIGENCE SYSTEMGenerative artificial intelligence system"Generative artificial intelligence system" means an artificial intelligence system that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligence system's training data.Md. Code, Cts. & Jud. Proc. § 3–2701(H)" MEANS AN ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) THAT CAN GENERATE DERIVED SYNTHETIC CONTENT, SUCH AS TEXT, IMAGES, VIDEO, AND AUDIO, THAT EMULATES THE STRUCTURE AND CHARACTERISTICS OF THE ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B)'S TRAINING DATA. (I) "HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I)" MEANS: (1) DAMAGE TO PROPERTY OTHER THAN THE ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) ITSELF; (2) PERSONAL PHYSICAL, FINANCIAL, OR REPUTATIONAL INJURY, ILLNESS, OR DEATH; (3) MENTAL OR PHYSIOLOGICAL ANGUISH, EMOTIONAL HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I), OR DISTORTION OF A PERSONPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M)'S BEHAVIOR THAT WOULD BE HIGHLY OFFENSIVE TO A REASONABLE PERSONPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M); OR (4) ANY LOSS OF CONSORTIUM OR SERVICES, OR OTHER LOSS DERIVING FROM ANY TYPE OF HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) DESCRIBED UNDER THIS SUBSECTION. (J) "HIGH–IMPACT ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B)" MEANS ANY ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B), REGARDLESS OF THE NUMBER OF PARAMETERS AND SUPERVISION STRUCTURE, THAT: (1) IS USED, OR REASONABLY FORESEEABLY MAY BE USED, AS A CONTROLLING FACTOR IN MAKING CONSEQUENTIAL DECISIONSConsequential decision"Consequential decision" means a decision that has a legal or similarly significant effect on an individual's access to the criminal justice system, housing, employment, credit, education, health care, or insurance.Md. Code, Cts. & Jud. Proc. § 3–2701(C); (2) IS USED, OR REASONABLY FORESEEABLY MAY BE USED, TO CATEGORIZE GROUPS OF PERSONSPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M) BY PROTECTED CHARACTERISTICS, SUCH AS RACE, ETHNIC ORIGIN, OR RELIGIOUS BELIEF; (3) IS USED, OR REASONABLY FORESEEABLY MAY BE USED, IN THE DIRECT MANAGEMENT OR OPERATION OF CRITICAL INFRASTRUCTURE; (4) IS USED, OR REASONABLY FORESEEABLY MAY BE USED, IN A VEHICLE, IN A MEDICAL DEVICE, OR IN THE SAFETY SYSTEM OF A VEHICLE OR MEDICAL DEVICE; (5) IS USED, OR REASONABLY FORESEEABLY MAY BE USED, TO ENGAGE IN A SYNTHETIC RELATIONSHIPSynthetic relationship"Synthetic relationship" means a series of interactions between an individual and an artificial intelligence system that mimics human interaction and emotional responses.Md. Code, Cts. & Jud. Proc. § 3–2701(O); OR (6) EXHIBITS, OR COULD BE EASILY MODIFIED TO EXHIBIT, HIGH LEVELS OF PERFORMANCE AT TASKS THAT POSE A SERIOUS RISK TO ECONOMIC SECURITY OR PUBLIC HEALTH OR SAFETY. (K) (1) "MATERIAL FACTMaterial fact(1) "Material fact" means any specific characteristic or quality of the product. (2) "Material fact" does not include a general opinion about the product or its quality.Md. Code, Cts. & Jud. Proc. § 3–2701(K)" MEANS ANY SPECIFIC CHARACTERISTIC OR QUALITY OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N). (2) "MATERIAL FACTMaterial fact(1) "Material fact" means any specific characteristic or quality of the product. (2) "Material fact" does not include a general opinion about the product or its quality.Md. Code, Cts. & Jud. Proc. § 3–2701(K)" DOES NOT INCLUDE A GENERAL OPINION ABOUT THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) OR ITS QUALITY. (L) "METHOD OF DEVELOPMENTMethod of development"Method of development" means the selection of training data for the product, including the training, testing, auditing, and fine–tuning of the product.Md. Code, Cts. & Jud. Proc. § 3–2701(L)" MEANS THE SELECTION OF TRAINING DATA FOR THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), INCLUDING THE TRAINING, TESTING, AUDITING, AND FINE–TUNING OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N). (M) "PERSONPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M)" MEANS ANY INDIVIDUAL, CORPORATION, COMPANY, ASSOCIATION, FIRM, PARTNERSHIP, SOCIETY, JOINT STOCK COMPANY, OR ANY OTHER ENTITY, INCLUDING ANY GOVERNMENTAL ENTITY OR UNINCORPORATED ASSOCIATION OF PERSONSPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M). (N) "PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N)" MEANS A HIGH–IMPACT ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) OR A GENERATIVE ARTIFICIAL INTELLIGENCE SYSTEMGenerative artificial intelligence system"Generative artificial intelligence system" means an artificial intelligence system that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligence system's training data.Md. Code, Cts. & Jud. Proc. § 3–2701(H). (O) "SYNTHETIC RELATIONSHIPSynthetic relationship"Synthetic relationship" means a series of interactions between an individual and an artificial intelligence system that mimics human interaction and emotional responses.Md. Code, Cts. & Jud. Proc. § 3–2701(O)" MEANS A SERIES OF INTERACTIONS BETWEEN AN INDIVIDUAL AND AN ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) THAT MIMICS HUMAN INTERACTION AND EMOTIONAL RESPONSES.
Section 3–2701 establishes the defined terms used throughout the new AI product liability subtitle. Key features include a broad definition of artificial intelligence system tracking the NIST framework language, a six-prong high-impact artificial intelligence system definition that sweeps in consequential decision-making, biometric classification, critical infrastructure, vehicles and medical devices, synthetic relationships, and frontier-capable systems. The bill defines product to mean either a high-impact AI system or a generative AI system, setting the scope of all causes of action. Notably, design is defined to include unexpected skills or behaviors that appear in a product, explicitly bringing emergent AI capabilities within the design-defect framework. The deployer definition carves out small businesses with fewer than 20 employees or 10,000 users, and developer excludes unmodified open-source users.
THIS SUBTITLE DOES NOT APPLY TO ARTIFICIAL INTELLIGENCE SYSTEMSArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) USED ONLY FOR PEER–REVIEWED SCIENTIFIC RESEARCH.
Section 3–2702 carves out AI systems used solely for peer-reviewed scientific research from the entire subtitle. This exemption is absolute — if the AI system is used only for that purpose, no cause of action under this subtitle applies.
(A) 1 A PERSONPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M) MAY BRING AN ACTION IN ACCORDANCE WITH THIS SECTION AGAINST A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) OR DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) FOR HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) CAUSED BY A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) THAT IS DANGEROUS OR DEFECTIVE.
(B) 2 IN AN ACTION AGAINST A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) ALLEGING HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) CAUSED BY A DANGEROUS OR DEFECTIVE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) DUE TO THE DEFECTIVE DESIGN OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), THE PLAINTIFF SHALL PROVE BY A PREPONDERANCE OF THE EVIDENCE THAT THE HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) WAS PROXIMATELY CAUSED BY THE FAILURE OF THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) TO EXERCISE REASONABLE CARE AND THAT, AT THE TIME THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) LEFT THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E)'S CONTROL: (1) THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) KNEW OR REASONABLY SHOULD HAVE KNOWN OF THE DESIGNDesign"Design" means the intended or known physical and material characteristics of a product, including: (1) any intended or known formulation or content of the product; and (2) the usual result of the intended method of development or other process used to produce the product, including unexpected skills or behaviors that appear in a product.Md. Code, Cts. & Jud. Proc. § 3–2701(F) DEFECT THAT CAUSED THE HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I); (2) THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) ACCOUNTED FOR INTENDED USES AND REASONABLY FORESEEABLE UNINTENDED USES OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N); AND (3) A TECHNOLOGICALLY FEASIBLE AND PRACTICAL ALTERNATIVE DESIGNDesign"Design" means the intended or known physical and material characteristics of a product, including: (1) any intended or known formulation or content of the product; and (2) the usual result of the intended method of development or other process used to produce the product, including unexpected skills or behaviors that appear in a product.Md. Code, Cts. & Jud. Proc. § 3–2701(F) EXISTED THAT WOULD HAVE MITIGATED OR AVOIDED THE FORESEEABLE RISK OF HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) WITHOUT SIGNIFICANTLY IMPAIRING THE INTENDED USE OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N).
(C)(1)–(3) 3 IN THIS SUBSECTION, "ADEQUATE INSTRUCTION OR WARNING" MEANS AN INSTRUCTION OR A WARNING REGARDING A DANGER THAT WOULD SUFFICIENTLY INFORM A REASONABLY PRUDENT PERSONPerson"Person" means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity or unincorporated association of persons.Md. Code, Cts. & Jud. Proc. § 3–2701(M) ON THE SAFE USE AND DANGERS OF A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N). (2) IN AN ACTION AGAINST A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) ALLEGING HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) CAUSED BY A DANGEROUS OR DEFECTIVE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) DUE TO A FAILURE TO PROVIDE ADEQUATE INSTRUCTION OR WARNING, A PLAINTIFF SHALL PROVE BY A PREPONDERANCE OF THE EVIDENCE THAT THE HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) WAS PROXIMATELY CAUSED BY THE FAILURE TO PROVIDE ADEQUATE INSTRUCTION OR WARNING AND THAT, AT THE TIME THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) LEFT THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E)'S CONTROL, THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) KNEW OR REASONABLY SHOULD HAVE KNOWN OF THE DANGER POSED BY THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N). (3) IT IS A DEFENSE TO AN ACTION AGAINST A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) FOR HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) CAUSED BY A FAILURE TO INSTRUCT OR WARN THAT: (I) THE USER OR CONSUMER OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) WAS AT LEAST 17 YEARS OLD; AND (II) THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) DANGER WAS KNOWN OR OPEN AND OBVIOUS TO THE USER OR CONSUMER OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), OR SHOULD HAVE BEEN KNOWN OR OPEN AND OBVIOUS TO THE USER OR CONSUMER OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N).
(D) 4 IN AN ACTION AGAINST A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) ALLEGING HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) CAUSED BY A DANGEROUS OR DEFECTIVE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) DUE TO THE FAILURE OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) TO CONFORM TO AN EXPRESS WARRANTYExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including a sample or model of a product.Md. Code, Cts. & Jud. Proc. § 3–2701(G), THE PLAINTIFF SHALL PROVE BY A PREPONDERANCE OF THE EVIDENCE THAT THE HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) WAS PROXIMATELY CAUSED BY THE FAILURE OF THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) TO EXERCISE REASONABLE CARE AND THAT: (1) THE PLAINTIFF REASONABLY RELIED ON AN EXPRESS WARRANTYExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including a sample or model of a product.Md. Code, Cts. & Jud. Proc. § 3–2701(G) MADE BY A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) ABOUT A MATERIAL FACTMaterial fact(1) "Material fact" means any specific characteristic or quality of the product. (2) "Material fact" does not include a general opinion about the product or its quality.Md. Code, Cts. & Jud. Proc. § 3–2701(K) CONCERNING THE SAFETY OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N); AND (2) (I) 1. THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) FAILED TO CONFORM TO THE EXPRESS WARRANTYExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including a sample or model of a product.Md. Code, Cts. & Jud. Proc. § 3–2701(G); AND 2. THE FAILURE OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) TO CONFORM TO THE EXPRESS WARRANTYExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including a sample or model of a product.Md. Code, Cts. & Jud. Proc. § 3–2701(G) RESULTED IN THE HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I); OR (II) 1. THE EXPRESS WARRANTYExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including a sample or model of a product.Md. Code, Cts. & Jud. Proc. § 3–2701(G) WAS UNTRUE; AND 2. HAD THE EXPRESS WARRANTYExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including a sample or model of a product.Md. Code, Cts. & Jud. Proc. § 3–2701(G) BEEN TRUE, THE HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) WOULD NOT HAVE OCCURRED.
(E)(1)–(3) 5 A DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) MAY BE HELD LIABLE IN PLACE OF A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) IN AN ACTION UNDER THIS SECTION IF THE DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D): (I) MADE A MATERIAL AND SUBSTANTIAL CHANGE TO THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N); OR (II) INTENTIONALLY MISUSED THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) CONTRARY TO AN EXPRESS WARRANTYExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including a sample or model of a product.Md. Code, Cts. & Jud. Proc. § 3–2701(G) AND THAT MISUSE WAS THE PROXIMATE CAUSE OF HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) SUFFERED BY A PLAINTIFF. (2) (I) USE OF A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) THAT IS INTENDED BY THE DEVELOPER OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) DOES NOT CONSTITUTE A MISUSE OR MATERIAL OR SUBSTANTIAL CHANGE OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) UNDER THIS SECTION. (II) IF A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) DOES NOT SPECIFY AN INTENDED USE FOR THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), INTENDED USE MAY BE INFERRED BY THE TARGETED MARKET AND MANNER OF DISTRIBUTION OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N). (3) A DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) LICENSING A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) MAY NOT BE HELD LIABLE TO A PLAINTIFF FOR A VIOLATION UNDER THIS SECTION SOLELY BY REASON OF OWNERSHIP OR USE OF A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N).
(F)(1) 6 IN AN ACTION BROUGHT UNDER THIS SECTION, THERE IS A REBUTTABLE PRESUMPTION THAT A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) IS NOT DANGEROUS OR DEFECTIVE IF: (1) IN AN ACTION AGAINST A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E), THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E): (I) CONDUCTED A DOCUMENTED TESTING, EVALUATION, VERIFICATION, VALIDATION, AND AUDITING OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) CONSISTENT WITH INDUSTRY BEST PRACTICES; (II) MITIGATED FORESEEABLE RISKS TO THE EXTENT POSSIBLE; (III) DISCLOSED FORESEEABLE RISKS AND MITIGATION TACTICS DIRECTLY TO DEPLOYERSDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) AND CONSUMERS; AND (IV) IF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) IS DESIGNED FOR OR REASONABLY LIKELY TO BE USED BY MINORS, CONSIDERED AND MITIGATED FORESEEABLE RISKS TO MINORS USING THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), INCLUDING: 1. THE IMPACT OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) ON COGNITIVE AND EMOTIONAL DEVELOPMENT; 2. THE IMPLEMENTATION OF AGE AND CONTENT RESTRICTIONS; AND 3. PROVIDING CLEAR, ACCESSIBLE DISCLOSURES TO DEPLOYERSDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D), CONSUMERS, AND GUARDIANS ABOUT POTENTIAL RISKS;
(F)(2) 7 IN AN ACTION AGAINST A DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D), THE DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) IMPLEMENTED AND ADHERED TO A RISK MANAGEMENT POLICY THAT: (I) SPECIFIES THE POLICY BY WHICH THE DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) WILL IDENTIFY, DOCUMENT, AND MITIGATE ANY RISK, ESPECIALLY TO MINOR USERS, THAT IS REASONABLY FORESEEABLE; (II) IS CONSISTENT WITH INDUSTRY BEST PRACTICES; (III) IS REASONABLE IN LIGHT OF: 1. THE SIZE AND COMPLEXITY OF THE DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D); 2. THE NATURE AND SCOPE OF THE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N), INCLUDING THE INTENDED USES AND UNINTENDED USES, AS WELL AS ANY MODIFICATION MADE TO THE SYSTEM BY THE DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D); AND 3. THE DATA THAT THE SYSTEM, ONCE DEPLOYED, PROCESSES AS INPUTS; AND (IV) IS ELECTRONICALLY AVAILABLE TO ITS EMPLOYEES AND TO THE ATTORNEY GENERAL ON REQUEST.
Section 3–2703 is the operative heart of the bill, establishing three distinct causes of action against developers — defective design, failure to warn, and breach of express warranty — and specifying when deployers may be sued in lieu of developers. Each cause of action requires proof by a preponderance of the evidence that harm was proximately caused by the developer's failure to exercise reasonable care.
The defective-design claim requires showing the developer knew or should have known of the defect, accounted for intended and foreseeable unintended uses, and that a feasible alternative design existed. The failure-to-warn claim requires showing the developer knew or should have known of the product's danger, with a defense for adult users (≥17) when the danger was open and obvious. The express-warranty claim requires reasonable reliance on a material safety statement by the developer.
Deployer liability is limited to cases where the deployer materially and substantially changed the product or intentionally misused it contrary to an express warranty. A deployer merely licensing and using the product cannot be held liable solely on that basis. The section creates powerful rebuttable presumptions of non-defectiveness: for developers who conducted documented testing consistent with industry best practices, mitigated foreseeable risks, disclosed risks to deployers and consumers, and (for minor-facing products) addressed risks to minors; and for deployers who implemented and adhered to a risk management policy meeting specified criteria. The deployer's risk management policy must be electronically available to employees and to the Attorney General on request.
(A)–(D) THE ATTORNEY GENERAL MAY BRING AN ACTION AGAINST A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) OR A DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) FOR HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) CAUSED BY A DANGEROUS OR DEFECTIVE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) DESCRIBED IN § 3–2703 OF THIS SUBTITLE. (B) (1) IN AN ACTION BROUGHT UNDER THIS SECTION, THE ATTORNEY GENERAL MAY OBTAIN: (I) INJUNCTIVE RELIEF; (II) A CIVIL PENALTY; (III) DAMAGES, RESTITUTION, OR OTHER COMPENSATION ON BEHALF OF AN INDIVIDUAL WHO HAS BEEN HARMED BY AN ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B); AND (IV) ANY OTHER RELIEF THAT THE ATTORNEY GENERAL CONSIDERS APPROPRIATE. (2) IF THE USE OF THE SOFTWARE CAUSES PERSONAL INJURY OR DEATH, A CIVIL PENALTY IMPOSED UNDER THIS SUBSECTION MAY NOT EXCEED THE APPLICABLE LIMITATION ON NONECONOMIC DAMAGES UNDER § 3–2A–09 OF THIS TITLE. (C) IN AN ACTION BROUGHT BY THE ATTORNEY GENERAL UNDER THIS SECTION, THE ATTORNEY GENERAL IS ENTITLED TO RECOVER THE COSTS OF THE ACTION FOR THE USE OF THE STATE. (D) BEFORE BRINGING AN ACTION UNDER THIS SECTION SEEKING INJUNCTIVE RELIEF, THE ATTORNEY GENERAL SHALL PROVIDE WRITTEN NOTICE TO A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) OR DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) AT LEAST 30 DAYS BEFORE COMMENCEMENT OF THE ACTION THAT INCLUDES A DETAILED DESCRIPTION OF THE BASIS OF THE CLAIM AND, WHEN POSSIBLE, THE OPPORTUNITY TO CURE ANY CONDITION GIVING RISE TO THE CLAIM.
Section 3–2704 authorizes the Attorney General to bring enforcement actions against developers and deployers for harm caused by dangerous or defective AI products. The AG may obtain injunctive relief, civil penalties (capped at the applicable noneconomic damages limitation under § 3–2A–09 in cases involving personal injury or death), compensatory damages and restitution on behalf of harmed individuals, and any other appropriate relief. The AG is entitled to recover costs of the action. Before seeking injunctive relief, the AG must provide 30 days' written notice with a detailed description of the claim and, when possible, an opportunity to cure.
(A)(1)–(2) CONTRIBUTORY NEGLIGENCE IS NOT A DEFENSE TO AN ACTION BROUGHT UNDER THIS SUBTITLE AND RECOVERY BY A PLAINTIFF MAY NOT BE BARRED REGARDLESS OF THE PLAINTIFF'S DEGREE OF FAULT. (2) RECOVERY BY A PLAINTIFF UNDER THIS SUBTITLE SHALL BE REDUCED IN PROPORTION TO THE PERCENTAGE OF FAULT ATTRIBUTABLE TO THE PLAINTIFF.
(B) A DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) AND A DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D) MAY BE HELD JOINTLY AND SEVERALLY LIABLE FOR THE PORTION OF HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) TO THE PLAINTIFF ATTRIBUTED TO THE DEVELOPERDeveloper(1) "Developer" means a person that designs, codes, produces, owns, or substantially modifies an artificial intelligence system for use by a developer or for use by third parties. (2) "Developer" does not include a person that uses an open source artificial intelligence system and does not substantially modify the artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(E) AND DEPLOYERDeployer(1) "Deployer" means a person, including a developer, that uses or operates an artificial intelligence system for use by the deployer or third parties. (2) "Deployer" does not include an individual or small business that has fewer than: (I) 20 employees; or (II) 10,000 users of its product.Md. Code, Cts. & Jud. Proc. § 3–2701(D).
(C) 8 IT IS NOT A DEFENSE TO AN ACTION BROUGHT UNDER THIS SUBTITLE THAT AN ARTIFICIAL INTELLIGENCE SYSTEMArtificial intelligence system"Artificial intelligence system" means an engineered or machine–based system with varying levels of autonomy that can, for explicit or implicit objectives, infer from the inputs it receives how to generate outputs that can influence physical or virtual environments.Md. Code, Cts. & Jud. Proc. § 3–2701(B) AUTONOMOUSLY CAUSED THE HARMHarm"Harm" means: (1) damage to property other than the artificial intelligence system itself; (2) personal physical, financial, or reputational injury, illness, or death; (3) mental or physiological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (4) any loss of consortium or services, or other loss deriving from any type of harm described under this subsection.Md. Code, Cts. & Jud. Proc. § 3–2701(I) TO THE PLAINTIFF.
Section 3–2705 establishes three procedural rules shaping litigation under this subtitle. Contributory negligence is abolished as a complete defense — a plaintiff's recovery cannot be barred regardless of fault, but damages are reduced proportionally by the plaintiff's percentage of fault (modified comparative fault). Developers and deployers may be held jointly and severally liable for the portion of harm attributed to them. Finally, the bill explicitly forecloses the defense that an AI system autonomously caused the harm, ensuring that developers and deployers cannot disclaim liability by pointing to the AI system's independent decision-making.
(1)–(2) THIS SUBTITLE: (1) SUPPLEMENTS ANY COMMON LAW TORT LIABILITY CAUSE OF ACTION AND ANY STATE PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) LIABILITY LAWS; AND (2) MAY NOT BE INTERPRETED TO PROHIBIT ANY PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) LIABILITY CAUSE OF ACTION INVOLVING A PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) BROUGHT UNDER A DIFFERENT CLAIM UNDER PRODUCTProduct"Product" means a high–impact artificial intelligence system or a generative artificial intelligence system.Md. Code, Cts. & Jud. Proc. § 3–2701(N) LIABILITY COMMON LAW OR STATUTE.
Section 3–2706 is a savings clause providing that the new subtitle supplements — rather than displaces — existing common law tort liability and state product liability laws. No existing product liability cause of action is preempted by this subtitle.