WHAT THIS BILL REGULATES · 5 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(a) Artificial intelligence systemsArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) are products that shift decision-making power and responsibility away from persons to software-based systems, often without direct human oversight. An artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) can be inherently dangerous due to its capabilities, potential for misuse or exploitation, and ability to unilaterally evolve.
(b) Developers of sophisticated artificial intelligence systemsArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) have an obligation to make the systems safe when used in reasonably foreseeable ways. Deployers of these products also have an obligation to ensure that the products are safe and used in a way that does not materially affect an individual's rights.
(c) In the artificial intelligence ecosystem, there will typically be multiple suppliers upstream of a consumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 4193b(5). The original developer of an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) should be responsible for harms attributable to the artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2), even if the developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) is not the deployer of the system to a consumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 4193b(5). Small businesses using off-the-shelf artificial intelligence products according to the product's terms of use are not intended to be covered by this subchapter.
Section 4193a provides the legislature's findings and intent. It establishes that AI systems shift decision-making power away from persons to software, that developers have a safety obligation for reasonably foreseeable uses, that deployers share responsibility, and that original developers remain responsible even when they are not the direct deployer to consumers. Small businesses using off-the-shelf AI products according to terms of use are expressly excluded from the subchapter's intent.
(1)–(13) As used in this subchapter: (1) "Artificial intelligence agentArtificial intelligence agent"Artificial intelligence agent" is an artificial intelligence system that is capable of autonomously performing tasks on behalf of a user or another artificial intelligence system.9 V.S.A. § 4193b(1)" is an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) that is capable of autonomously performing tasks on behalf of a user or another artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2). (2) "Artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2)" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systemsArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action. (3) "Biometric dataBiometric data"Biometric data" means data that depict or describe physical, biological, or behavioral traits, characteristics, or measurements of or relating to an identified or identifiable person's body. Biometric information includes depictions, images, descriptions, or recordings of an individual's facial features, iris or retina, finger or handprints, voice, genetics, or characteristic movements or gestures. Biometric information also includes data derived from the depictions, images, descriptions, or recordings, to the extent that it would be reasonably possible to identify the person from whose information the data had been derived.9 V.S.A. § 4193b(3)" means data that depict or describe physical, biological, or behavioral traits, characteristics, or measurements of or relating to an identified or identifiable person's body. Biometric information includes depictions, images, descriptions, or recordings of an individual's facial features, iris or retina, finger or handprints, voice, genetics, or characteristic movements or gestures. Biometric information also includes data derived from the depictions, images, descriptions, or recordings, to the extent that it would be reasonably possible to identify the person from whose information the data had been derived. (4) "Consequential decisionConsequential decision"Consequential decision" means a decision that either 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.9 V.S.A. § 4193b(4)" means a decision that either 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. (5) "ConsumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 4193b(5)" means any individual who is a resident of this State. (6) "DeployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6)" means a person, including a developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7), who uses or operates an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) for internal use or for use by third parties in the State. (7) "DeveloperDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7)" means a person who designs, codes, produces, owns, or substantially modifiesSubstantially modifies"Substantially modifies" or "substantial modification" means a new version, new release, or other update to an artificial intelligence system or service that materially changes its functionality or performance, including the results of retraining or fine tuning.9 V.S.A. § 4193b(13) an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) for internal use or for use by a third party in the State. (8) "Do not train dataDo not train data"Do not train data" means any data whose owner or publisher has affirmatively asserted that the data should not be used for training an artificial intelligence system.9 V.S.A. § 4193b(8)" means any data whose owner or publisher has affirmatively asserted that the data should not be used for training an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2). (9) "Dual-use foundational modelDual-use foundational model"Dual-use foundational model" means an artificial intelligence system that: (A) is trained on broad data; (B) generally uses self-supervision; (C) contains at least 10 billion parameters; (D) is applicable across a wide range of contexts; and (E) exhibits, or could be easily modified to exhibit, high levels of performance at tasks that pose a serious risk to economic security, public health or safety, or any combination of those matters, such as by: (i) substantially lowering the barrier of entry for nonexperts to design, synthesize, acquire, or use chemical, biological, radiological, or nuclear (CBRN) weapons; (ii) enabling powerful offensive cyber operations through automated vulnerability discovery and exploitation against a wide range of potential targets of cyberattacks; or (iii) permitting the evasion of human control or oversight through means of deception or obfuscation.9 V.S.A. § 4193b(9)" means an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) that: (A) is trained on broad data; (B) generally uses self-supervision; (C) contains at least 10 billion parameters; (D) is applicable across a wide range of contexts; and (E) exhibits, or could be easily modified to exhibit, high levels of performance at tasks that pose a serious risk to economic security, public health or safety, or any combination of those matters, such as by: (i) substantially lowering the barrier of entry for nonexperts to design, synthesize, acquire, or use chemical, biological, radiological, or nuclear (CBRN) weapons; (ii) enabling powerful offensive cyber operations through automated vulnerability discovery and exploitation against a wide range of potential targets of cyberattacks; or (iii) permitting the evasion of human control or oversight through means of deception or obfuscation. (10) "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's training data. This definition includes an artificial intelligence agent.9 V.S.A. § 4193b(10)" means an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligence's training data. This definition includes an artificial intelligence agentArtificial intelligence agent"Artificial intelligence agent" is an artificial intelligence system that is capable of autonomously performing tasks on behalf of a user or another artificial intelligence system.9 V.S.A. § 4193b(1). (11) "High-risk artificial intelligence systemHigh-risk artificial intelligence system"High-risk artificial intelligence system" means any artificial intelligence system, regardless of the number of parameters and supervision structure, that is: (A) used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decision; (ii) to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in vehicles, medical devices, or in the safety system of a product; or (v) to influence elections or voters; or (B) used to collect the biometric data of an individual from a biometric identification system without consent.9 V.S.A. § 4193b(11)" means any artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2), regardless of the number of parameters and supervision structure, that is: (A) used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decisionConsequential decision"Consequential decision" means a decision that either 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.9 V.S.A. § 4193b(4); (ii) to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in vehicles, medical devices, or in the safety system of a product; or (v) to influence elections or voters; or (B) used to collect the biometric data of an individual from a biometric identification system without consent. (12) "Inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12)" means a high-risk artificial intelligence systemHigh-risk artificial intelligence system"High-risk artificial intelligence system" means any artificial intelligence system, regardless of the number of parameters and supervision structure, that is: (A) used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decision; (ii) to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in vehicles, medical devices, or in the safety system of a product; or (v) to influence elections or voters; or (B) used to collect the biometric data of an individual from a biometric identification system without consent.9 V.S.A. § 4193b(11), dual-use foundational modelDual-use foundational model"Dual-use foundational model" means an artificial intelligence system that: (A) is trained on broad data; (B) generally uses self-supervision; (C) contains at least 10 billion parameters; (D) is applicable across a wide range of contexts; and (E) exhibits, or could be easily modified to exhibit, high levels of performance at tasks that pose a serious risk to economic security, public health or safety, or any combination of those matters, such as by: (i) substantially lowering the barrier of entry for nonexperts to design, synthesize, acquire, or use chemical, biological, radiological, or nuclear (CBRN) weapons; (ii) enabling powerful offensive cyber operations through automated vulnerability discovery and exploitation against a wide range of potential targets of cyberattacks; or (iii) permitting the evasion of human control or oversight through means of deception or obfuscation.9 V.S.A. § 4193b(9), or 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's training data. This definition includes an artificial intelligence agent.9 V.S.A. § 4193b(10). (13) "Substantially modifiesSubstantially modifies"Substantially modifies" or "substantial modification" means a new version, new release, or other update to an artificial intelligence system or service that materially changes its functionality or performance, including the results of retraining or fine tuning.9 V.S.A. § 4193b(13)" or "substantial modification" means a new version, new release, or other update to an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) or service that materially changes its functionality or performance, including the results of retraining or fine tuning.
Section 4193b establishes the subchapter's defined terms. The key definitional architecture is the umbrella term 'inherently dangerous artificial intelligence system,' which encompasses three categories: high-risk AI systems (defined by use case, including consequential decisions, critical infrastructure, biometric collection, and election influence), dual-use foundational models (defined by a 10-billion-parameter threshold plus CBRN/cyber/evasion risk), and generative AI systems (which expressly include AI agents). The breadth of 'inherently dangerous' is notable — it captures virtually all large-scale generative AI systems regardless of deployment context.
(a) The Division of Artificial Intelligence within the Agency of Digital Services shall collect and review Artificial Intelligence SystemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) Safety and Impact Assessments pursuant to this subchapter.
(b) The Attorney General shall enforce the provisions of this subchapter and may bring an action in the name of the State against a deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) or developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) for noncompliance to restrain by temporary or permanent injunction the noncompliance. The action may be brought in the Superior Court of the county in which the person resides, has a place of business, or is doing business. Said courts are authorized to issue temporary or permanent injunctions to restrain and prevent violations of this subchapter, the injunctions to be issued without bonds, or to dissolve, or revoke the certificate of authority of, a deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) or developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7).
(c)(1)–(4) Whenever the Attorney General has reasonable cause to believe that any person has engaged in or is engaging in any violation of this subchapter, the Attorney General may issue a civil investigative demand. (2) In rendering and furnishing any information requested pursuant to a civil investigative demand, a developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) or deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) may redact or omit any trade secrets or information protected from disclosure by State or federal law. If a developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) or deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) refuses to disclose or redacts or omits information based on the exemption from disclosure of trade secrets, the developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) or deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) shall affirmatively state to the Attorney General that the basis for nondisclosure, redaction, or omission is because the information is a trade secret. (3) To the extent that any information requested pursuant to a civil investigative demand is subject to attorney-client privilege or work-product protection, disclosure of the information shall not constitute a waiver of the privilege or protection. (4) Any information, statement, or documentation provided to the Attorney General pursuant to this subsection shall be exempt from public inspection and copying under the Public Records Act.
Section 4193c establishes the enforcement architecture. The Division of Artificial Intelligence within the Agency of Digital Services is designated as the assessment review body. The Attorney General is the enforcement authority, empowered to seek injunctions, dissolution, or revocation of certificates of authority. Civil investigative demand authority is granted with trade secret protections — respondents may redact trade secrets but must affirmatively assert the basis. Attorney-client privilege and work-product protections are preserved, and all materials provided to the AG are exempt from public records disclosure.
(1)–(2) The Attorney General shall post on the Attorney General's website: (1) information relating to the responsibilities of a developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7), distributor, and deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) pursuant to section 4193f of this title; and (2) an online mechanism through which a consumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 4193b(5) may submit a complaint under this subchapter to the Attorney General.
Section 4193d imposes obligations on the Attorney General to publish information about developer, distributor, and deployer responsibilities, and to maintain an online complaint mechanism for consumers. These are government-facing obligations rather than obligations on regulated parties, though the existence of the complaint mechanism shapes the enforcement landscape for developers and deployers.
(a)(1)–(2) 1 Each deployer of an inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12) shall: (1) submit to the Division of Artificial Intelligence an Artificial Intelligence SystemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) Safety and Impact Assessment prior to deploying the inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12) in this State, and every two years thereafter; and (2) submit to the Division of Artificial Intelligence an updated Artificial Intelligence SystemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) Safety and Impact Assessment if the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) makes a material and substantial change to the inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12) that includes: (A) the purpose for which the system is used for; or (B) the type of data the system processes or uses for training purposes.
(b)(1)–(13) 2 Each Artificial Intelligence SystemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) Safety and Impact Assessment pursuant to subsection (a) of this section shall include, with respect to the inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12): (1) the purpose of the system; (2) the deployment context and intended use cases; (3) the benefits of use; (4) any foreseeable risk of unintended or unauthorized uses and the steps taken, to the extent reasonable, to mitigate the risk; (5) whether the model is proprietary; (6) a description of the data the system processes or uses for training purposes; (7) whether the data the system uses for training purposes has been processed to remove personal information, copyrighted information, and do not train dataDo not train data"Do not train data" means any data whose owner or publisher has affirmatively asserted that the data should not be used for training an artificial intelligence system.9 V.S.A. § 4193b(8); (8) a description of transparency measures, including identifying to individuals when the system is in use; (9) identification of any third-party artificial intelligence systemsArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) or datasets the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) relies on to train or operate the system, if applicable; (10) whether the developer of the system, if different than the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6), disclosed the information pursuant to this subsection as well as the results of testing, vulnerabilities, and the parameters for safe and intended use; (11) a description of the data that the system, once deployed, processes as inputs; (12) a description of postdeployment monitoring and user safeguards, including a description of the oversight process in place to address issues as issues arise; and (13) a description of how the model impacts consequential decisionsConsequential decision"Consequential decision" means a decision that either 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.9 V.S.A. § 4193b(4) or the collection of biometric dataBiometric data"Biometric data" means data that depict or describe physical, biological, or behavioral traits, characteristics, or measurements of or relating to an identified or identifiable person's body. Biometric information includes depictions, images, descriptions, or recordings of an individual's facial features, iris or retina, finger or handprints, voice, genetics, or characteristic movements or gestures. Biometric information also includes data derived from the depictions, images, descriptions, or recordings, to the extent that it would be reasonably possible to identify the person from whose information the data had been derived.9 V.S.A. § 4193b(3).
(c) 3 Each deployer of a high-risk artificial intelligence systemHigh-risk artificial intelligence system"High-risk artificial intelligence system" means any artificial intelligence system, regardless of the number of parameters and supervision structure, that is: (A) used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decision; (ii) to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in vehicles, medical devices, or in the safety system of a product; or (v) to influence elections or voters; or (B) used to collect the biometric data of an individual from a biometric identification system without consent.9 V.S.A. § 4193b(11) shall submit a one-, six-, and 12-month testing result to the Division of Artificial Intelligence showing the reliability of the results generated by the system, any variance in those results over the testing periods, and any mitigation strategies for variances, in the first year of deployment.
(d) Upon the Division of Artificial Intelligence receiving notice that a deployer of an inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12) is not in compliance with the requirements under this section, the Division shall immediately notify the deployer of the finding in writing and order the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) to submit the assessment required pursuant to subsection (a) of this section. If the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) fails to submit the assessment on or before 45 days after the deployersDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) receives the notice, the Division of Artificial Intelligence shall notify the Attorney General in writing of the violation.
Section 4193e is the bill's central regulatory submission obligation. Deployers must file an AI System Safety and Impact Assessment with the Division of Artificial Intelligence before deploying any inherently dangerous AI system in Vermont and every two years thereafter, plus upon material changes to purpose or training data. The assessment must cover 13 enumerated categories, including system purpose, deployment context, benefits, foreseeable risks, proprietary status, training data description, data processing for PII/copyright/DNT removal, transparency measures, third-party dependencies, developer disclosures, input data, post-deployment monitoring, and impact on consequential decisions or biometric data collection. High-risk AI systems face additional first-year testing result submissions at one, six, and twelve months. A 45-day cure period applies before referral to the Attorney General.
(a)(1)–(9) 4 Each developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) or deployer of any inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12) that could be reasonably expected to impact consumersConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 4193b(5) shall exercise reasonable care to avoid any reasonably foreseeable risk arising out of the development of, intentional and substantial modification to, or deployment of an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) that causes or is likely to cause: (1) the commission of a crime or unlawful act; (2) any unfair or deceptive treatment of or unlawful impact on an individual; (3) any physical, financial, relational, or reputational injury on an individual; (4) psychological injuries that would be highly offensive to a reasonable person; (5) any physical or other intrusion upon the solitude or seclusion, or the private affairs or concerns of a person, if the intrusion would be offensive to a reasonable person; (6) any violation to the intellectual property rights of persons under applicable State and federal laws; (7) discrimination on the basis of a person's or class of persons' actual or perceived race, color, ethnicity, sex, sexual orientation, gender identity, sex characteristics, religion, national origin, familial status, biometric information, or disability status; (8) distortion of a person's behavior in a manner that causes or is likely to cause that person or another person physical or psychological harm; or (9) the exploitation of the vulnerabilities of a specific group of persons due to their age or physical or mental disability in order to materially distort the behavior of a person pertaining to that group in a manner that causes or is likely to cause that person or another person physical or psychological harm.
(b)(1)–(2) 5 Each developer of an inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12) shall document and disclose to any actual or potential deployer of the artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) any: (1) reasonably foreseeable risk, including by unintended or unauthorized uses, that causes or is likely to cause any of the injuries as set forth in subsection (a) of this section; and (2) risk mitigation processes that are reasonably foreseeable to mitigate any injury as set forth in subsection (a) of this section.
Section 4193f establishes the core duty of care for developers and deployers. Subsection (a) imposes a broad reasonable-care standard covering nine categories of foreseeable harm: crime, unfair/deceptive treatment, physical/financial/relational/reputational injury, offensive psychological injury, privacy intrusion, IP violations, discrimination across enumerated protected classes, behavioral distortion causing harm, and exploitation of age- or disability-based vulnerabilities. Subsection (b) imposes a separate developer-specific disclosure obligation: developers must document and disclose to actual or potential deployers all foreseeable risks and risk mitigation processes.
(a)(1)–(2) 6 No developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) shall offer, sell, lease, give, or otherwise place in the stream of commerce: (1) an inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12), unless the developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) has conducted a documented testing, evaluation, verification, and validation of that system at least as stringent as the latest version of the Artificial Intelligence Risk Management Framework published by the National Institute of Standards and Technology (NIST); or (2) an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) that creates reasonably foreseeable risks pursuant to section 4193f of this subchapter, unless the developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) mitigates these risks to the extent possible, considers alternatives, and discloses vulnerabilities and mitigation tactics to a deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6).
(b)(1)–(2) 7 No deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) shall deploy an inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12) or an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means a machine-based system that can, for a given set of objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.9 V.S.A. § 4193b(2) that creates reasonably foreseeable risks pursuant to section 4193f of this subchapter unless the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) has designed and implemented a risk management policy and program for the model or system. The risk management policy shall specify the principles, processes, and personnel that the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) shall use in maintaining the risk management program to identify, mitigate, and document any risk that is a reasonably foreseeable consequence of deploying or using the system. Each risk management policy and program designed, implemented, and maintained pursuant to this subsection shall be: (1) at least as stringent as the latest version of the Artificial Intelligence Risk Management Framework published by the NIST; and (2) reasonable considering: (A) the size and complexity of the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6); (B) the nature and scope of the system, including the intended uses and unintended uses and the modifications made to the system by the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6); and (C) the data that the system, once deployed, processes as inputs.
Section 4193g imposes two parallel gating requirements — one for developers and one for deployers — that must be satisfied before an inherently dangerous AI system can enter commerce or be deployed in Vermont. For developers, subsection (a)(1) prohibits placing an inherently dangerous AI system in commerce without NIST AI RMF-level testing, evaluation, verification, and validation; subsection (a)(2) extends this to any AI system that creates foreseeable risks under § 4193f, requiring mitigation, alternatives consideration, and vulnerability disclosure. For deployers, subsection (b) prohibits deployment without a documented risk management policy and program meeting NIST AI RMF standards, proportionate to the deployer's size, the system's scope, and the data it processes.
(a) A person who violates this subchapter or rules adopted under this subchapter commits an unfair practice in commerce in violation of section 2453 of this title.
(b) A consumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 4193b(5) harmed by a violation of this subchapter or rules adopted under this subchapter may bring an action in Superior Court for damages incurred, injunctive relief, punitive damages in the case of an intentional violation, and reasonable costs and attorney's fees.
Section 4193h establishes two enforcement pathways. Subsection (a) classifies any violation of the subchapter as an unfair practice in commerce under 9 V.S.A. § 2453, opening the door to Attorney General enforcement under existing consumer protection authority. Subsection (b) creates an explicit private right of action: a consumer harmed by a violation may sue in Superior Court for actual damages, injunctive relief, punitive damages for intentional violations, and reasonable costs and attorney's fees.
(a) In any civil action brought against a deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) or developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) pursuant to section 4193h of this subchapter, there shall be a rebuttable presumption that a developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) or deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) upheld the standard of care if the developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) or deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) complied with the provisions of this subchapter.
(b) A deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) who is not also the developer of an inherently dangerous artificial intelligence systemInherently dangerous artificial intelligence system"Inherently dangerous artificial intelligence system" means a high-risk artificial intelligence system, dual-use foundational model, or generative artificial intelligence system.9 V.S.A. § 4193b(12) shall not be found in violation of this subchapter if the deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) deploys the system in accordance with the developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7)'s instructions and information as set forth in section 4193f of this subchapter.
(c)(1)–(7) Nothing in this subchapter shall restrict a developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7)'s or deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6)'s ability to: (1) comply with federal, State, or municipal ordinances or regulations; (2) comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, State, municipal, or other governmental authorities; (3) investigate, establish, exercise, prepare for, or defend legal claims; (4) provide a product or service specifically requested by a consumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 4193b(5); (5) perform under a contract to which a consumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 4193b(5) is a party, including fulfilling the terms of a written warranty; (6) engage in public or peer-reviewed scientific or statistical research in the public interest that adheres to all other applicable ethics and privacy laws and is approved, monitored, and governed by an institutional review board or by similar independent oversight entities that determine: (A) that the expected benefits of the research outweigh the risks associated with the research; and (B) that the developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) or deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) has implemented reasonable safeguards to mitigate the risks associated with the research; or (7) assist another developerDeveloper"Developer" means a person who designs, codes, produces, owns, or substantially modifies an artificial intelligence system for internal use or for use by a third party in the State.9 V.S.A. § 4193b(7) or deployerDeployer"Deployer" means a person, including a developer, who uses or operates an artificial intelligence system for internal use or for use by third parties in the State.9 V.S.A. § 4193b(6) with any of the obligations imposed under this subchapter.
Section 4193i establishes three limitations on liability. First, a rebuttable presumption that the standard of care was met arises when a developer or deployer complied with the subchapter's provisions. Second, a deployer who is not the developer receives a safe harbor if the deployer deployed the system in accordance with the developer's instructions and disclosures under § 4193f. Third, a savings clause preserves the ability of developers and deployers to comply with law, respond to legal process, defend legal claims, fulfill consumer requests and contracts, engage in IRB-approved research, and assist other developers or deployers with their obligations.
(1)–(2) This subchapter shall apply only to a person that is not a small business as defined by the U.S. Small Business Administration, and: (1) conducts business, promotes, or advertises in this State or produces a product or service consumed by residents of this State; or (2) engages in the development, distribution, or deployment of a high-risk artificial intelligence systemHigh-risk artificial intelligence system"High-risk artificial intelligence system" means any artificial intelligence system, regardless of the number of parameters and supervision structure, that is: (A) used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decision; (ii) to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in vehicles, medical devices, or in the safety system of a product; or (v) to influence elections or voters; or (B) used to collect the biometric data of an individual from a biometric identification system without consent.9 V.S.A. § 4193b(11) in this State.
Section 4193j limits the subchapter's scope to persons who are not small businesses as defined by the U.S. Small Business Administration and who either (1) conduct business, promote, or advertise in Vermont or produce products or services consumed by Vermont residents, or (2) engage in development, distribution, or deployment of a high-risk AI system in Vermont. The small business exclusion is a significant scope limitation.