(a) For the purposes of this section, "artificial intelligence (AI) toolArtificial intelligence (AI) toolAny algorithm, product, software, or system that uses artificial intelligence to perform tasks.G.S. 115C-102.13(a)" means any algorithm, product, software, or system that uses artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) to perform tasks.

(b) 3 A local board of education may adopt a policy for student use of artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1). If a local board of education adopts a policy pursuant to this section, the policy may include any of the following: (1) Allow schools to block access to AI tools on student electronic devices. (2) Allow schools to block access to AI tools on internet connections available to students. (3) Disciplinary actions for unauthorized use of artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1), up to retaining the student in the current grade for repeated violations.

(c) 4 Any policy adopted pursuant to this section shall include exceptions for student use of artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) if the use is authorized by a teacher for educational purposes or is required by the student's individualized education program or section 504 (29 U.S.C. § 794) plan. If a student will be using artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) under an exception in this subsection, the parent of the student and the principal of the school shall be notified prior to the use.

5 The State Board of Education shall include instruction on critical thinking and civics in the standard course of study for middle school students. The State Board shall develop standards for this instruction to be offered in a semester course that may be extended to a yearlong course at the discretion of the local board of education. The course shall include instruction in at least the following areas: (1) Components of the civic and citizenship standards adopted by the State Board pursuant to G.S. 115C-81.45 that the State Board deems appropriate for this course. (2) Proper methods of research on topics related to civics and government, including methods of identifying reputable sources of information. (3) Identification of disinformation and misinformation. (4) Basic structures of the United States government and the North Carolina government at both the State and local levels. (5) Beginner level introduction into philosophies of governance, including instruction on at least the following writings: a. The Prince by Niccolo Machiavelli. b. The Republic by Plato.

(b) 6 Introductory Course. – Each public school unit shall offer to middle school students a required introductory computer science course that surveys the field of computer science. The State Board of Education, in consultation with the Department of Public Instruction, shall adopt a list of approved courses that fulfill this requirement and make it publicly available on the Department's website. The approved courses shall include instruction in at least the following topics: (1) Instruction on typing on a physical keyboard. (2) Introduction to basic software design. (3) Proper uses of artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) in an academic and professional setting. (4) Instruction on identifying content generated using artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1). (5) Introduction to basic cybersecurity. (6) Instruction on the internet as a tool, including the benefits and dangers of its use.

(15) 7 The Board of Governors shall adopt a policy requiring each constituent institution of The University of North Carolina to develop standards for the use of artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) in the classroom. The policy shall permit constituent institutions to set their own standards but shall ensure that each constituent institution (i) presents its standards to all students every year and (ii) provides for appropriate disciplinary action in the event a student misuses artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) in a class. Appropriate disciplinary action, as described in this subdivision, could include automatic receipt of a failing grade in a class.

8 The State Board of Community Colleges shall adopt a policy requiring each community college to develop standards for the use of artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) in the classroom. The policy shall permit community colleges to set their own standards but shall ensure that each community college (i) presents its standards to all students every year and (ii) provides for appropriate disciplinary action in the event a student misuses artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) in a class. Appropriate disciplinary action, as described in this section, could include automatic receipt of a failing grade in a class.

(a)–(b) This Chapter shall be known and may be cited as the "North Carolina Fair AI Hiring Act (NC-FAHA)." (b) The General Assembly finds that: (1) Artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) and algorithmic decision-making tools are increasingly used by employersEmployerA public or private employer.G.S. 95A-2(5) in North Carolina to screen, rank, evaluate, and select applicants for employment and to evaluate employees for promotion. However, these AI tools can perpetuate or amplify patterns of discrimination based on race, sex, ethnicity, national origin, disability, age, and other protected characteristics, often through mechanisms that are opaque to both applicants and employersEmployerA public or private employer.G.S. 95A-2(5). (2) North Carolinians have a substantial interest in ensuring that the use of algorithmic tools in a covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3) is subject to independent scrutiny, public accountability, and meaningful notice to employees. (3) Existing anti-discrimination laws prohibit discriminatory employment practices but do not specifically address the disclosure, audit, and notice requirements necessary to effectively regulate automated decision-making tools. (4) It is the public policy of this State that hiring and promotion employment decisions made using artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) tools must be fair and not perpetuate or amplify patterns of discrimination.

(1)–(10) The following definitions apply in this Chapter: (1) Automated employment decision toolAutomated employment decision toolAny computational process, or any technology that incorporates such a process, derived in whole or in material part from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues a simplified output, including a score, classification, ranking, or recommendation, that is used to substantially assist or replace the exercise of discretionary judgment by an employer or employment agency in making a covered employment decision. A tool does not qualify as an AEDT solely because it translates or transcribes text, performs arithmetic computation on manually entered data without autonomous parameter adjustment, or conducts background checks governed exclusively by the federal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq.G.S. 95A-2(1) or AEDT. – Any computational process, or any technology that incorporates such a process, derived in whole or in material part from machine learning, statistical modeling, data analytics, or artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1), that issues a simplified output, including a score, classification, ranking, or recommendation, that is used to substantially assist or replaceSubstantially assist or replaceWhere the output of an AEDT: (i) serves as the sole basis for a covered employment decision; (ii) serves as a weighted factor that overrides or supersedes other evaluation criteria; or (iii) is a determinative threshold below or above which an individual is screened out of further consideration without independent human review. A tool does not substantially assist or replace discretionary judgment if the output is one of multiple factors reviewed by a human decision maker who retains genuine independent authority and who regularly departs from the tool's recommendation.G.S. 95A-2(10) the exercise of discretionary judgment by an employerEmployerA public or private employer.G.S. 95A-2(5) or employment agencyEmployment agencyAny person that regularly undertakes, with or without compensation, to procure employees for an employer or to procure for employees opportunities to work for an employer.G.S. 95A-2(6) in making a covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3). A tool does not qualify as an AEDT solely because it translates or transcribes text, performs arithmetic computation on manually entered data without autonomous parameter adjustment, or conducts background checks governed exclusively by the federal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq. (2) Bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2). – An impartial evaluation by an independent auditorIndependent auditorA person that: (i) is not employed by and has no financial interest in the deployer or any vendor of the AEDT being audited, other than compensation for the audit itself; (ii) has demonstrated expertise in the statistical or computational methods necessary to evaluate the AEDT; and (iii) conducts the audit in accordance with the standards established by the State Human Resources Commission for State employment or the Commissioner of Labor as to private employers.G.S. 95A-2(7) that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category. (3) Covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3). – A decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State. (4) DeployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4). – Any employerEmployerA public or private employer.G.S. 95A-2(5) or employment agencyEmployment agencyAny person that regularly undertakes, with or without compensation, to procure employees for an employer or to procure for employees opportunities to work for an employer.G.S. 95A-2(6) that uses an AEDT to make or substantially influence a covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3), regardless of whether the AEDT was developed by the deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) or by a third party. (5) EmployerEmployerA public or private employer.G.S. 95A-2(5). – A public or private employerPrivate employerAs defined in G.S. 95-25.2, except that the term does not include public employers.G.S. 95A-2(8). (6) Employment agencyEmployment agencyAny person that regularly undertakes, with or without compensation, to procure employees for an employer or to procure for employees opportunities to work for an employer.G.S. 95A-2(6). – Any person that regularly undertakes, with or without compensation, to procure employees for an employerEmployerA public or private employer.G.S. 95A-2(5) or to procure for employees opportunities to work for an employerEmployerA public or private employer.G.S. 95A-2(5). (7) Independent auditorIndependent auditorA person that: (i) is not employed by and has no financial interest in the deployer or any vendor of the AEDT being audited, other than compensation for the audit itself; (ii) has demonstrated expertise in the statistical or computational methods necessary to evaluate the AEDT; and (iii) conducts the audit in accordance with the standards established by the State Human Resources Commission for State employment or the Commissioner of Labor as to private employers.G.S. 95A-2(7). – A person that: (i) is not employed by and has no financial interest in the deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) or any vendor of the AEDT being audited, other than compensation for the audit itself; (ii) has demonstrated expertise in the statistical or computational methods necessary to evaluate the AEDT; and (iii) conducts the audit in accordance with the standards established by the State Human Resources Commission for State employment or the Commissioner of Labor as to private employersPrivate employerAs defined in G.S. 95-25.2, except that the term does not include public employers.G.S. 95A-2(8). (8) Private employerPrivate employerAs defined in G.S. 95-25.2, except that the term does not include public employers.G.S. 95A-2(8). – As defined in G.S. 95-25.2, except that the term does not include public employersPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9). (9) Public employerPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9). – Any State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employerEmployerA public or private employer.G.S. 95A-2(5) that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes. (10) Substantially assist or replaceSubstantially assist or replaceWhere the output of an AEDT: (i) serves as the sole basis for a covered employment decision; (ii) serves as a weighted factor that overrides or supersedes other evaluation criteria; or (iii) is a determinative threshold below or above which an individual is screened out of further consideration without independent human review. A tool does not substantially assist or replace discretionary judgment if the output is one of multiple factors reviewed by a human decision maker who retains genuine independent authority and who regularly departs from the tool's recommendation.G.S. 95A-2(10). – Where the output of an AEDT: (i) serves as the sole basis for a covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3); (ii) serves as a weighted factor that overrides or supersedes other evaluation criteria; or (iii) is a determinative threshold below or above which an individual is screened out of further consideration without independent human review. A tool does not substantially assist or replaceSubstantially assist or replaceWhere the output of an AEDT: (i) serves as the sole basis for a covered employment decision; (ii) serves as a weighted factor that overrides or supersedes other evaluation criteria; or (iii) is a determinative threshold below or above which an individual is screened out of further consideration without independent human review. A tool does not substantially assist or replace discretionary judgment if the output is one of multiple factors reviewed by a human decision maker who retains genuine independent authority and who regularly departs from the tool's recommendation.G.S. 95A-2(10) discretionary judgment if the output is one of multiple factors reviewed by a human decision maker who retains genuine independent authority and who regularly departs from the tool's recommendation.

(a) 9 No deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) shall use an AEDT to make a covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3) in this State unless all of the following conditions are met: (1) The AEDT has been subjected to a bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) conducted by an independent auditorIndependent auditorA person that: (i) is not employed by and has no financial interest in the deployer or any vendor of the AEDT being audited, other than compensation for the audit itself; (ii) has demonstrated expertise in the statistical or computational methods necessary to evaluate the AEDT; and (iii) conducts the audit in accordance with the standards established by the State Human Resources Commission for State employment or the Commissioner of Labor as to private employers.G.S. 95A-2(7) within the 12-month period immediately preceding each use of the AEDT. (2) A summary of the results of the most recent bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) is publicly accessible as required by this Chapter. (3) Advance notice of the AEDT's use has been provided as required by this Chapter.

(b)–(c) 9 A deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) may commission a bias audit of its own AEDT or may use a bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) commissioned by the vendor that developed or supplied the AEDT, provided that the auditor meets the independence requirements of this Chapter and the audit was conducted within the applicable 12-month period. (c) Where the AEDT is used for the first time and no historical data from the deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4)'s own use is available, the bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) may be conducted using test data or historical data from comparable deployersDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4), provided that the audit summary discloses this limitation.

(d) The absence of statistically significant adverse impact findings in a bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) does not constitute a defense to a claim of employment discrimination under any other provision of State or federal law.

(a) 10 Within 30 days of completing a bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) required under G.S. 95A-3, and prior to any use of the AEDT in a covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3), a deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) shall publish on the employment section of its publicly accessible website a summary of the bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) results that includes all of the following: (1) The date of the bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) and the name of the independent auditorIndependent auditorA person that: (i) is not employed by and has no financial interest in the deployer or any vendor of the AEDT being audited, other than compensation for the audit itself; (ii) has demonstrated expertise in the statistical or computational methods necessary to evaluate the AEDT; and (iii) conducts the audit in accordance with the standards established by the State Human Resources Commission for State employment or the Commissioner of Labor as to private employers.G.S. 95A-2(7). (2) The AEDT's name or description and the date the deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) began using it. (3) The source and scope of the data used in the audit, including whether historical or test data was used and any limitations on the data. (4) The selection and scoring rates and impact ratios for each required demographic category. (5) The auditor's findings regarding statistically significant adverse impact, if any.

(b)–(c) 10 A deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) that does not maintain a public website shall make the required disclosure available upon written request within five business days. (c) Bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) summaries shall remain publicly accessible for a minimum of three years from the date of publication.

(a) 11 No later than 10 business days before using an AEDT to make a covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3) with respect to a particular applicant or employee, a deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) shall provide written notice to that individual indicating all of the following information: (1) That an AEDT will be used in connection with the covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3). (2) The qualifications, characteristics, or criteria that the AEDT is designed to evaluate. (3) A hyperlink (URL) to the bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) summary required under G.S. 95-4 or, if no website exists, instructions for requesting the summary. (4) The right to request an alternative selection or evaluation process under subsection (b) of this section.

(b) 12 Upon a timely written request from an applicant or employee, a deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) shall provide an alternative selection or evaluation process that does not rely upon the AEDT, unless the deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) can demonstrate that no reasonable alternative process exists. A request is timely if made within five business days of receiving the notice required under subsection (a) of this section.

(c) 11 For job applicants, the notice required by subsection (a) of this section may be included in the job posting, provided that it is clear and conspicuous and not buried within general terms and conditions.

(a)–(e) The Attorney General is authorized to investigate and bring a civil action against any private employerPrivate employerAs defined in G.S. 95-25.2, except that the term does not include public employers.G.S. 95A-2(8) or employment agencyEmployment agencyAny person that regularly undertakes, with or without compensation, to procure employees for an employer or to procure for employees opportunities to work for an employer.G.S. 95A-2(6) that violates this Chapter. (b) Upon finding a violation, a court may impose a civil penalty of: (1) Not less than five hundred dollars ($500.00) and not more than one thousand five hundred dollars ($1,500) per violation per day for an initial violation; and (2) Not less than one thousand dollars ($1,000) and not more than five thousand dollars ($5,000) per violation per day for each subsequent violation by the same deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) within any rolling three-year period. (c) Any applicant or employee aggrieved by a violation of this Chapter by a private employerPrivate employerAs defined in G.S. 95-25.2, except that the term does not include public employers.G.S. 95A-2(8) may bring a civil action in the General Court of Justice within one year of the date the plaintiff knew or reasonably should have known of the violation. A prevailing plaintiff may recover one or more of the following remedies: (1) Compensatory damages. (2) Injunctive or declaratory relief. (3) Reasonable attorneys' fees and costs. (4) Such other relief as the court deems equitable. (d) It shall be a complete defense that the deployerDeployerAny employer or employment agency that uses an AEDT to make or substantially influence a covered employment decision, regardless of whether the AEDT was developed by the deployer or by a third party.G.S. 95A-2(4) conducted a timely and conforming bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2); published a conforming audit summary; provided conforming advance notice; and that the violation was a technical or inadvertent defect subsequently cured within 30 days of notice from the complainant or the Attorney General. (e) The clear proceeds of any civil penalties collected under this section shall be remitted to the Civil Penalty and Forfeiture Fund pursuant to G.S. 115C-457.2.

(a)–(c) 13 For public employersPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9) that are State agencies, the State Human Resources Commission (SHRC) shall, as part of its rulemaking authority under G.S. 126-4, incorporate the requirements of this Chapter into the State Human Resources Act. (b) Public employersPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9) that are not State agencies shall incorporate the requirements of this Chapter into each entity's respective policies governing recruitment, selection, and promotion. (c) Bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) summaries required of public employersPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9) shall be posted on the relevant agency's public website.

(d) The SHRC shall investigate and adjudicate complaints and referrals alleging violation of this Chapter by a public employerPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9). Any applicant or employee aggrieved by a violation of this Chapter by a public employerPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9) may file a written complaint with the SHRC within one year of the date the complainant knew or reasonably should have known of the violation. The SHRC shall do all of the following: (1) Conduct an investigation within 60 days of receipt of a complaint. (2) Issue written findings. (3) Where a violation is found, direct the public employerPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9) to remedy the violation within 30 days and, if the violation resulted in an adverse covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3), afford the complainant priority consideration in any subsequent non-AEDT selection process for the same or a comparable position.

(e) The OSHR may conduct compliance audits of public employerPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9) AEDT use on a periodic basis, not less than biennially, and shall report findings to the General Assembly, the Office of State Budget and Management (OSBM), and the Fiscal Research Division.

(f) Nothing in this section creates or is intended to create a waiver of sovereign immunity beyond the administrative remedies provided herein. This section does not create a right of action in the General Court of Justice against a public employerPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9), except that an aggrieved party who has exhausted the Commission's administrative process may seek judicial review of a final Commission order pursuant to G.S. 150B-43.

(g) Following a finding by the SHRC that a public employerPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9) has violated this Chapter, the Commission shall simultaneously transmit the finding to OSHR for initiation of personnel disciplinary proceedings under Chapter 126 of the General Statutes against the employee responsible for the violation, unless the Commission affirmatively determines that the violation was caused solely by circumstances beyond the responsible employee's reasonable control. Disciplinary proceedings initiated under this subsection shall be conducted in accordance with G.S. 126-34.02 through G.S. 126-34.05. Sanctions commensurate with the severity and willfulness of the violation may include written warning, demotion, suspension without pay, or dismissal.

(h)–(j) Following a finding by the SHRC that a public employerPublic employerAny State agency, department, or institution; any constituent institution of The University of North Carolina; the North Carolina Community College System; and any local governmental employer that receives State appropriations used in whole or in part to compensate employees or that has any local employees subject to provisions of Chapter 126 of the General Statutes.G.S. 95A-2(9) subject to the State Budget Act, Chapter 143C of the General Statutes, has violated the independent bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) provisions of this Chapter and has failed to cure the violation within 30 days, the SHRC shall certify the finding and the agency's failure to cure to the OSBM. Upon receipt of the certification, the OSBM shall withhold from the noncompliant agency's personnel services budget allotment an amount equal to two times the reasonable cost of a conforming independent bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) for the AEDT at issue, as estimated by OSHR. However, the OSBM shall not withhold amounts from any program services, capital, or other budget allotments of the agency. The withholding shall take effect no later than 30 days after certification. The withheld amount shall be held in a reserve account by OSBM and shall be credited back to the agency's personnel services allotment in full upon OSHR's certification to OSBM that the agency has cured the violation. If the violation is not cured within 180 days of the withholding, the withheld amount shall be transferred to the General Fund as a nonrecurring credit. (i) A single withholding action under this section shall not exceed fifty thousand dollars ($50,000) per violation finding. Where multiple violations are found simultaneously, the OSBM shall sequence withholdings to avoid operational impairment of essential agency services, as determined in OSBM's reasonable discretion in consultation with the agency head. (j) The OSBM shall report each withholding action taken under this section to the General Assembly and Fiscal Research Division within 30 days of taking the action and shall include a summary of all withholding actions in its annual report.

14 The SHRC, in conjunction with the Attorney General and the Department of Administration, shall develop and publish the following concerning employerEmployerA public or private employer.G.S. 95A-2(5) use of AEDT: (1) Minimum qualification standards for independent auditorsIndependent auditorA person that: (i) is not employed by and has no financial interest in the deployer or any vendor of the AEDT being audited, other than compensation for the audit itself; (ii) has demonstrated expertise in the statistical or computational methods necessary to evaluate the AEDT; and (iii) conducts the audit in accordance with the standards established by the State Human Resources Commission for State employment or the Commissioner of Labor as to private employers.G.S. 95A-2(7). (2) Methodological standards for bias auditsBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2), including approved statistical methods and minimum sample size requirements. (3) A standardized format for bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) summaries. (4) A standardized form for the required advance notice. (5) The annual inventory reporting process for employerEmployerA public or private employer.G.S. 95A-2(5) deployment of AEDT.

(a)–(b) 15 In addition to the provisions of G.S. 95A-2, the following definitions apply in this section: (1) Contract employee. – Any individual selected to perform work for a State agency under a covered contract, whether provided by the prime contractor or a subcontractor of a prime contractor. (2) Covered contract. – A personal service contract with a total value exceeding twenty-five thousand dollars ($25,000), including all renewals and amendments. (3) Personal service. – Professional or technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement. The term does not include professional services procured using the competitive selection requirements required by Chapter 143 of the General Statutes. (4) Personal service contract. – An agreement, or any amendment thereto, with a consultant for the rendering of personal services. (5) Prime contractor. – Any person that enters directly into a covered contract with a State agency. (6) Purchased services. – Services provided by a vendor to accomplish routine, continuing, and necessary functions. The term includes, but is not limited to, services for equipment maintenance and repair; operation of a physical plant; security; computer hardware and software maintenance; data entry; key punch services; and computer time-sharing, contract programming, and analysis. (b) A prime contractor shall comply with the audit, disclosure, and notice requirements of this Chapter with respect to any AEDT used to select contract employees under a covered contract. Such use constitutes a covered employment decisionCovered employment decisionA decision to hire an individual for, or to promote an employee to, a position within this State, including a remote position performed primarily by an individual who resides within this State.G.S. 95A-2(3) for the purposes of this Chapter.

(c) 16 The Department of Administration shall include in the standard terms and conditions for all covered contracts a requirement that the prime contractor do all of the following: (1) Certify at contract execution and at each annual renewal whether an automated employment decision toolAutomated employment decision toolAny computational process, or any technology that incorporates such a process, derived in whole or in material part from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues a simplified output, including a score, classification, ranking, or recommendation, that is used to substantially assist or replace the exercise of discretionary judgment by an employer or employment agency in making a covered employment decision. A tool does not qualify as an AEDT solely because it translates or transcribes text, performs arithmetic computation on manually entered data without autonomous parameter adjustment, or conducts background checks governed exclusively by the federal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq.G.S. 95A-2(1) was used or will be used to select contract employees performing work under the contract. (2) Provide the contracting agency the bias auditBias auditAn impartial evaluation by an independent auditor that at a minimum: (i) calculates the selection rate and scoring rate for each race and ethnicity category, each sex category, and each intersectional race-and-sex category assessed by the AEDT; (ii) calculates the impact ratio for each such category relative to the most-selected or highest-scoring category; (iii) identifies the source and scope of the historical or test data used in the audit; and (iv) states whether the AEDT was found to have a statistically significant adverse impact on any protected category.G.S. 95A-2(2) summary required by G.S. 95A-4 prior to such use. (3) Acknowledge that material failure to comply with this section constitutes a breach of contract entitling the State to withhold payment, terminate for cause, or both, at the State's election.

(d) Any individual who applied for or performed work as a contract employee under a covered contract and who was subjected to a nonconforming automated employment decision toolAutomated employment decision toolAny computational process, or any technology that incorporates such a process, derived in whole or in material part from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues a simplified output, including a score, classification, ranking, or recommendation, that is used to substantially assist or replace the exercise of discretionary judgment by an employer or employment agency in making a covered employment decision. A tool does not qualify as an AEDT solely because it translates or transcribes text, performs arithmetic computation on manually entered data without autonomous parameter adjustment, or conducts background checks governed exclusively by the federal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq.G.S. 95A-2(1) may file a written complaint with the SHRC within one year of discovering the violation. The SHRC shall investigate, issue written findings within 60 days, and upon finding a violation shall do all of the following: (1) Direct the contracting State agency to pursue available contract remedies under subdivision (3) of subsection (c) of this section. (2) Notify the Attorney General, who may bring a civil action against the prime contractor under G.S. 95A-6.

(a)–(b) This Chapter does not apply to any of the following: (1) Tools used solely for the purpose of administering or scoring a standardized test, the content of which was designed entirely by human experts without autonomous algorithmic parameter adjustment. (2) Tools used solely by employersEmployerA public or private employer.G.S. 95A-2(5) with fewer than 15 employees. (3) Tools used solely for recruiting outreach or advertising, where no individual applicant's qualifications are evaluated. (4) Background checks governed exclusively by the federal Fair Credit Reporting Act. (5) Tools used by an employerEmployerA public or private employer.G.S. 95A-2(5) subject to an express federal regulatory requirement governing the hiring process that is inconsistent with the requirements of this Chapter, to the extent of the inconsistency. (b) This Chapter does not apply to the judicial or legislative branches of government except that the Chief Justice of the Supreme Court and the Legislative Services Officer may establish substantially equivalent provisions and requirements concerning the deployment of AEDT.

(a)–(c) This Chapter supplements and does not supplant any obligation under: Title VII of the Civil Rights Act of 1964; the Age Discrimination in Employment Act; the Americans with Disabilities Act; the North Carolina Equal Employment Practices Act, G.S. 143-422.1, et seq.; or any other State or federal antidiscrimination law. (b) This Chapter does not preempt any local ordinance, rule, or policy of a county, municipality, or other local political subdivision of the State that imposes obligations on automated employment decision toolsAutomated employment decision toolAny computational process, or any technology that incorporates such a process, derived in whole or in material part from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues a simplified output, including a score, classification, ranking, or recommendation, that is used to substantially assist or replace the exercise of discretionary judgment by an employer or employment agency in making a covered employment decision. A tool does not qualify as an AEDT solely because it translates or transcribes text, performs arithmetic computation on manually entered data without autonomous parameter adjustment, or conducts background checks governed exclusively by the federal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq.G.S. 95A-2(1) equal to or greater than those imposed by this Chapter. (c) If any provision of this Chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application and, to this end, the provisions of this Chapter are severable.

(11)(o) 17 Using artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) as the primary method of processing a claim. For purposes of this sub-subdivision, "artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1)" means any machine-based system that, for a given set of objectives, generates predictions, recommendations, or decisions influencing outcomes without direct human control.

(1)–(4) The following definitions apply in this Article: (1) Artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1). – A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. (2) DeepfakeDeepfakeA type of media that uses a generative artificial intelligence system to create or alter images, audio, or video in highly realistic ways, including to falsely depict people making statements or completing actions. This definition includes a person using the person's own likeness, image, or voice in such media.G.S. 7A-810(2). – A type of media that uses a generative artificial intelligenceGenerative artificial intelligenceArtificial intelligence technology that is capable of creating content such as text, audio, image, or video based on patterns learned from large volumes of data rather than being explicitly programmed with rules. This definition does not include any form of artificial intelligence used only for spell-check, grammar, or editing purposes.G.S. 7A-810(3) system to create or alter images, audio, or video in highly realistic ways, including to falsely depict people making statements or completing actions. This definition includes a person using the person's own likeness, image, or voice in such media. (3) Generative artificial intelligenceGenerative artificial intelligenceArtificial intelligence technology that is capable of creating content such as text, audio, image, or video based on patterns learned from large volumes of data rather than being explicitly programmed with rules. This definition does not include any form of artificial intelligence used only for spell-check, grammar, or editing purposes.G.S. 7A-810(3). – Artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) technology that is capable of creating content such as text, audio, image, or video based on patterns learned from large volumes of data rather than being explicitly programmed with rules. This definition does not include any form of artificial intelligenceArtificial intelligenceThe capability of computer systems or algorithms to imitate intelligent human behavior. The term includes generative artificial intelligence.G.S. 163-278.18A(a)(1) used only for spell-check, grammar, or editing purposes. (4) HallucinationHallucinationOutput from a generative artificial intelligence system that appears plausible but is inaccurate, fabricated, or unsupported by the underlying data or sources, including all of the following: a. Invented statutes, regulations, cases, citations, quotes, or facts. b. Misstatements of existing statutes, regulations, or case holdings. c. Prerecorded videos or statements or live playback portraying a nonexistent person or factual scenario.G.S. 7A-810(4). – Output from a generative artificial intelligenceGenerative artificial intelligenceArtificial intelligence technology that is capable of creating content such as text, audio, image, or video based on patterns learned from large volumes of data rather than being explicitly programmed with rules. This definition does not include any form of artificial intelligence used only for spell-check, grammar, or editing purposes.G.S. 7A-810(3) system that appears plausible but is inaccurate, fabricated, or unsupported by the underlying data or sources, including all of the following: a. Invented statutes, regulations, cases, citations, quotes, or facts. b. Misstatements of existing statutes, regulations, or case holdings. c. Prerecorded videos or statements or live playback portraying a nonexistent person or factual scenario.

18 If any party to a case in a trial court uses any form of generative artificial intelligenceGenerative artificial intelligenceArtificial intelligence technology that is capable of creating content such as text, audio, image, or video based on patterns learned from large volumes of data rather than being explicitly programmed with rules. This definition does not include any form of artificial intelligence used only for spell-check, grammar, or editing purposes.G.S. 7A-810(3) in a court filing or appearance, regardless of whether a deepfakeDeepfakeA type of media that uses a generative artificial intelligence system to create or alter images, audio, or video in highly realistic ways, including to falsely depict people making statements or completing actions. This definition includes a person using the person's own likeness, image, or voice in such media.G.S. 7A-810(2) or hallucinationHallucinationOutput from a generative artificial intelligence system that appears plausible but is inaccurate, fabricated, or unsupported by the underlying data or sources, including all of the following: a. Invented statutes, regulations, cases, citations, quotes, or facts. b. Misstatements of existing statutes, regulations, or case holdings. c. Prerecorded videos or statements or live playback portraying a nonexistent person or factual scenario.G.S. 7A-810(4) is present, the trial judge may dismiss the case without prejudice.

(1)–(2) The party against whom a case has been dismissed pursuant to G.S. 7A-811 may take either of the following actions: (1) Bring a new action based on the same claim in the same trial court, after the party removes any and all forms of generative artificial intelligenceGenerative artificial intelligenceArtificial intelligence technology that is capable of creating content such as text, audio, image, or video based on patterns learned from large volumes of data rather than being explicitly programmed with rules. This definition does not include any form of artificial intelligence used only for spell-check, grammar, or editing purposes.G.S. 7A-810(3) from the court filings and subject to the approval of the trial judge. (2) Appeal the dismissal to the Court of Appeals if the party believes the dismissal was in error. The Court of Appeals may reverse the trial judge's decision if it finds the party in fact did not use any form of generative artificial intelligenceGenerative artificial intelligenceArtificial intelligence technology that is capable of creating content such as text, audio, image, or video based on patterns learned from large volumes of data rather than being explicitly programmed with rules. This definition does not include any form of artificial intelligence used only for spell-check, grammar, or editing purposes.G.S. 7A-810(3).

(a)–(b) 19 A party permitted to bring a new action or continue an initial case pursuant to G.S. 7A-812 shall not use any form of generative artificial intelligenceGenerative artificial intelligenceArtificial intelligence technology that is capable of creating content such as text, audio, image, or video based on patterns learned from large volumes of data rather than being explicitly programmed with rules. This definition does not include any form of artificial intelligence used only for spell-check, grammar, or editing purposes.G.S. 7A-810(3), including previously used and newly created content. (b) Upon the discovery of a violation of subsection (a) of this section, the trial judge may dismiss the case with prejudice and take any of the following disciplinary actions: (1) Impose monetary sanctions, including payment of a fine to the court and reasonable attorneys' fees. (2) Refer the party to the North Carolina State Bar for disciplinary proceedings, if the party is an attorney. (3) Hold the party in contempt of court.