WHAT THIS BILL REGULATES · 4 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. § 2495b(1) 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. § 2495b(1) 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. § 2495b(1) have an obligation to make such 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. § 2495b(4). 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. § 2495b(1) 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. § 2495b(1), 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. § 2495b(6) 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. § 2495b(4). 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 act.
This section sets forth the legislature's findings regarding the risks posed by AI systems and the allocation of responsibility between developers and deployers. It expresses the intent that original developers should bear responsibility for harms even when they are not the deployer, and that small businesses using off-the-shelf AI products according to the product's terms of use are not intended to be covered.
(1)–(10) As used in this subchapter: (1) "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. § 2495b(1)" 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. § 2495b(1) 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. (2) "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 such 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. § 2495b(2)" 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 such 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. (3) "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. § 2495b(3)" 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. (4) "ConsumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 2495b(4)" means any individual who is a resident of this State. (5) "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. § 2495b(5)" 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. § 2495b(6), 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. § 2495b(1) for internal use or for use by third parties in the State. (6) "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. § 2495b(6)" means a person who designs, codes, produces, owns, or substantially modifies 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. § 2495b(1) for internal use or for use by a third party in the State. (7) "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 cyber attacks; or (iii) permitting the evasion of human control or oversight through means of deception or obfuscation.9 V.S.A. § 2495b(7)" 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. § 2495b(1) 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 cyber attacks; or (iii) permitting the evasion of human control or oversight through means of deception or obfuscation. (8) "Generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" means an artificial intelligence system that is capable of generating output including text, imagery, audio, and synthetic data.9 V.S.A. § 2495b(8)" 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. § 2495b(1) that is capable of generating output including text, imagery, audio, and synthetic data. (9) "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, reasonably foreseeable as being used, or is a controlling factor in making a consequential decision; (B) used, or reasonably foreseeable as being used, to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (C) used, or reasonably foreseeable as being used, in the direct management or operation of critical infrastructure; (D) used, or reasonably foreseeable as being used, in vehicles, medical devices, or in the safety system of a product; (E) used, or reasonably foreseeable as being used, to influence elections or voters; or (F) used to collect the biometric data of an individual from a biometric identification system without consent.9 V.S.A. § 2495b(9)" 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. § 2495b(1), regardless of the number of parameters and supervision structure, that is: (A) used, reasonably foreseeable as being used, or is 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. § 2495b(3); (B) used, or reasonably foreseeable as being used, to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (C) used, or reasonably foreseeable as being used, in the direct management or operation of critical infrastructure; (D) used, or reasonably foreseeable as being used, in vehicles, medical devices, or in the safety system of a product; (E) used, or reasonably foreseeable as being used, to influence elections or voters; or (F) used to collect the biometric data of an individual from a biometric identification system without consent. (10) "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. § 2495b(10)" 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, reasonably foreseeable as being used, or is a controlling factor in making a consequential decision; (B) used, or reasonably foreseeable as being used, to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (C) used, or reasonably foreseeable as being used, in the direct management or operation of critical infrastructure; (D) used, or reasonably foreseeable as being used, in vehicles, medical devices, or in the safety system of a product; (E) used, or reasonably foreseeable as being used, to influence elections or voters; or (F) used to collect the biometric data of an individual from a biometric identification system without consent.9 V.S.A. § 2495b(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 cyber attacks; or (iii) permitting the evasion of human control or oversight through means of deception or obfuscation.9 V.S.A. § 2495b(7), or generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" means an artificial intelligence system that is capable of generating output including text, imagery, audio, and synthetic data.9 V.S.A. § 2495b(8).
This section establishes the defined terms used throughout the subchapter. The central defined product category is the inherently dangerous artificial intelligence system, which encompasses three sub-categories: high-risk AI systems (systems used in consequential decisions, biometric collection, critical infrastructure, vehicles, medical devices, elections, and protected-class categorization), dual-use foundational models (≥10 billion parameters with CBRN, cyber-offensive, or human-control-evasion risks), and generative AI systems. The scope is notably broad — essentially any generative AI system qualifies as inherently dangerous regardless of its deployment context or risk profile.
(a) The Division of Artificial Intelligence within the Agency of Digital Services shall collect and review Artificial Intelligence 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. § 2495b(5) 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. § 2495b(6) 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 such 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, such 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. § 2495b(5) 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. § 2495b(6).
This section establishes the two enforcement channels for the subchapter. The Division of Artificial Intelligence within the Agency of Digital Services is the administrative body responsible for collecting and reviewing AI Safety and Impact Assessments. The Attorney General is the enforcement authority and may bring injunctive actions against noncompliant developers or deployers in Superior Court. Courts may issue injunctions without bonds and may dissolve or revoke the certificate of authority of a violator.
(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. § 2495b(10) 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. § 2495b(1) 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. § 2495b(10) 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. § 2495b(1) 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. § 2495b(5) 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. § 2495b(10) 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)–(12) 1 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. § 2495b(1) 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. § 2495b(10): (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 such risk; (5) whether the model is proprietary; (6) a description of the data the system processes or uses for training purposes; (7) a description of transparency measures, including identifying to individuals when the system is in use; (8) 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. § 2495b(1) 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. § 2495b(5) relies on to train or operate the system, if applicable; (9) 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. § 2495b(5), disclosed the information pursuant to subsection 2495e(b) of this chapter as well as the results of testing, vulnerabilities, and the parameters for safe and intended use; (10) a description of the data the system, once deployed, processes as inputs; (11) a description of postdeployment monitoring and user safeguards, including a description of the oversight process in place to address issues as issues arise; and (12) 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. § 2495b(3) 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 such 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. § 2495b(2).
(c) 2 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, reasonably foreseeable as being used, or is a controlling factor in making a consequential decision; (B) used, or reasonably foreseeable as being used, to categorize groups of persons by sensitive and protected characteristics, such as race, ethnic origin, or religious belief; (C) used, or reasonably foreseeable as being used, in the direct management or operation of critical infrastructure; (D) used, or reasonably foreseeable as being used, in vehicles, medical devices, or in the safety system of a product; (E) used, or reasonably foreseeable as being used, to influence elections or voters; or (F) used to collect the biometric data of an individual from a biometric identification system without consent.9 V.S.A. § 2495b(9) must 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. § 2495b(10) 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. § 2495b(5) 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. § 2495b(5) fails to submit the assessment within 45 days after receiving the notice, the Division of Artificial Intelligence shall notify the Attorney General in writing of the violation.
This section imposes the bill's core documentation and regulatory submission requirements on deployers. Each deployer of an inherently dangerous AI system must submit an AI System Safety and Impact Assessment to the Division of Artificial Intelligence before deployment and biennially thereafter, and must submit an updated assessment upon any material change to the system's purpose or training data. The required assessment contents are extensive — covering purpose, deployment context, benefits, foreseeable risks, proprietary status, training data, transparency measures, third-party dependencies, developer disclosures, post-deployment monitoring, and impact on consequential decisions or biometric data collection.
Additionally, deployers of high-risk AI systems face a more granular post-deployment testing obligation: they must submit one-, six-, and twelve-month testing results in the first year showing system reliability, variance, and mitigation strategies. The Division has a compliance follow-up mechanism: upon notice of noncompliance, it must notify the deployer and order submission within 45 days, after which it escalates to the Attorney General.
(a)(1)–(9) 3 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. § 2495b(6) 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. § 2495b(10) that could be reasonably expected to impact consumersConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 2495b(4) shall exercise reasonable care to avoid any reasonably foreseeable risk arising out of the development, intentional and substantial modification, 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. § 2495b(1) 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 such 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 person's 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) 4 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. § 2495b(10) shall: (1) 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. § 2495b(1) any 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) 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. § 2495b(1) any risk mitigation processes that are reasonably foreseeable to mitigate any injury as set forth in subsection (a) of this section.
This section establishes a general standard of reasonable care for developers and deployers of inherently dangerous AI systems that could reasonably be expected to impact consumers. The enumerated harms against which reasonable care must be exercised are sweeping: crime facilitation, unfair or deceptive treatment, physical/financial/relational/reputational injury, offensive psychological injuries, privacy intrusions, intellectual property violations, discrimination across an extensive list of protected characteristics, behavioral distortion causing harm, and exploitation of vulnerabilities based on age or disability.
Subsection (b) imposes an affirmative developer disclosure obligation: developers must document and disclose to actual or potential deployers all reasonably foreseeable risks and risk mitigation processes relating to the harms enumerated in subsection (a).
(a)(1) 5 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. § 2495b(6) 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. § 2495b(10), 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. § 2495b(6) 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);
(a)(2) 6 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. § 2495b(1) that creates reasonably foreseeable risks pursuant to section 2495e of this chapter, 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. § 2495b(6) 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. § 2495b(5).
(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. § 2495b(5) 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. § 2495b(10) 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. § 2495b(1) that creates reasonably foreseeable risks pursuant to section 2495e of this chapter 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. § 2495b(5) has designed and implemented a risk management policy and program for such 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. § 2495b(5) 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 such 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 National Institute of Standards and Technology (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. § 2495b(5); (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. § 2495b(5); and (C) the data that the system, once deployed, processes as inputs.
This section imposes pre-market gating requirements on both developers and deployers. Developers may not place an inherently dangerous AI system in the stream of commerce unless they have conducted documented testing, evaluation, verification, and validation at least as stringent as the NIST AI Risk Management Framework. Developers of any AI system creating foreseeable risks under § 2495e must mitigate those risks, consider alternatives, and disclose vulnerabilities and mitigation tactics to deployers.
Deployers face a parallel prohibition: they may not deploy an inherently dangerous or foreseeably risky AI system unless they have designed, implemented, and maintained a risk management policy and program specifying the principles, processes, and personnel used to identify, mitigate, and document foreseeable risks. The program must meet the NIST AI RMF standard and be reasonable given the deployer's size, the system's scope, and the data the system 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. § 2495b(4) 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.
This section establishes the enforcement consequences for violations. Subsection (a) classifies any violation of the subchapter as an unfair practice in commerce under 9 V.S.A. § 2453, bringing violations within Vermont's existing Consumer Protection Act enforcement framework. Subsection (b) creates an explicit private right of action for consumers harmed by a violation, authorizing Superior Court actions 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. § 2495b(5) 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. § 2495b(6) pursuant to section 2495g of this chapter, 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. § 2495b(6) 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. § 2495b(5) 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. § 2495b(6) 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. § 2495b(5) 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. § 2495b(5) 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. § 2495b(10) 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. § 2495b(5) deploys such a 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. § 2495b(6)'s instructions and information as set forth in section 2495e of this chapter.
(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. § 2495b(6)'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. § 2495b(5)'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. § 2495b(4); (5) perform under a contract to which a consumerConsumer"Consumer" means any individual who is a resident of this State.9 V.S.A. § 2495b(4) 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 such 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. § 2495b(6) 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. § 2495b(5) has implemented reasonable safeguards to mitigate the risks associated with such 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. § 2495b(6) 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. § 2495b(5) with any of the obligations imposed under this subchapter.
This section establishes safe harbors and carve-outs. A rebuttable presumption of compliance with the standard of care arises when the developer or deployer has complied with the subchapter's requirements. A deployer who is not also the developer is shielded from liability if it deploys the system in accordance with the developer's instructions and disclosures under § 2495e. The section also preserves developers' and deployers' ability to comply with other law, respond to government inquiries, litigate, fulfill consumer contracts, and conduct IRB-approved public-interest research.