Vermont · House Bill · 2025–2026 Biennium
HB792
Vermont H.792 — An act relating to liability standards for developers and deployers of artificial intelligence systems

Status ● Introduced Effective Jul 1, 2026 Passage Likelihood M

WHAT THIS BILL REGULATES · 3 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Attorney General enforcement under Vermont Consumer Protection Act (9 V.S.A. chapter 63). Violations constitute unfair and deceptive acts in commerce under 9 V.S.A. § 2453. The AG may make rules, conduct civil investigations, bring civil actions, and enter into assurances of discontinuance. The bill also creates a private products liability cause of action for plaintiffs who suffer harm from a defective AI product.
Private Right of Action
Attorney General enforcement under Vermont Consumer Protection Act (9 V.S.A. chapter 63). Violations constitute unfair and deceptive acts in commerce under 9 V.S.A. § 2453. The AG may make rules, conduct civil investigations, bring civil actions, and enter into assurances of discontinuance. The bill also creates a private products liability cause of action for plaintiffs who suffer harm from a defective AI product.
Penalties
Tort damages for harm as defined in the statute (property damage, personal physical/financial/reputational injury, illness, death, mental or psychological anguish, emotional harm, behavioral distortion, and loss of consortium). Comparative negligence applies — plaintiff's recovery is diminished in proportion to their own fault. Joint and several liability among developers and deployers, with contribution rights. Deployer liability reduced by percentage of harm attributable to a developer's violation. No statutory minimum or maximum specified. AG enforcement under the Consumer Protection Act provides separate remedial authority including civil penalties available under 9 V.S.A. chapter 63.

What This Bill Requires

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.

Statutory Text
Analysis & Obligations
9 V.S.A. § 4193a
Legislative intent

(a)–(b) Artificial intelligence systemsArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2) are productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) 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 an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.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 an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2) have an obligation to make the systems safe when used in reasonably foreseeable ways. Deployers of these productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) also have an obligation to ensure that the productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) are safe and used in a way that does not materially affect an individual's rights.

This section sets forth the General Assembly's findings that AI systems are products that shift decision-making away from humans, can be inherently dangerous, and can unilaterally evolve. It declares that developers have an obligation to make AI systems safe for reasonably foreseeable uses and deployers have an obligation to ensure safe use that does not materially affect individuals' rights. These findings establish the policy basis for the liability framework that follows but create no independent compliance obligation.

9 V.S.A. § 4193b
Definitions

(1)–(14) As used in this subchapter: (1) "Adequate warning or instructionAdequate warning or instruction"Adequate warning or instruction" means a warning that a reasonably prudent person in the same or similar circumstances would have provided to a consumer with respect to the danger and communicates sufficient information on the dangers and safe use of a product.9 V.S.A. § 4193b(1)" means a warning that a reasonably prudent person in the same or similar circumstances would have provided to a consumer with respect to the danger and communicates sufficient information on the dangers and safe use of a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). (2) "Artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2)" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments. (3) "Consequential decisionConsequential decision"Consequential decision" means a decision that has either 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(3)" means a decision that has either 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)(A) "DeployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4)" 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.9 V.S.A. § 4193b(6), that operates an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2) for internal use or for use by a third party. (B) "DeployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4)" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). (5) "DesignDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5)" means the intended or known physical and material characteristics of a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) and includes any intended or known formulation or content of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) and the usual result of the intended development or other process used to produce the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13), which includes unexpected skills or behaviors that appear in a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). (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.9 V.S.A. § 4193b(6)" means a person who designsDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5), codes, produces, owns, or substantially modifies an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2) for internal use or for use by a third party. (7) "Express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7)" means any material, positive statement, affirmation of fact, promise, or description relating to a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13), including any sample or model of a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). (8) "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.9 V.S.A. § 4193b(8)" means an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.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. (9) "HarmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9)" means: (A) damage to property other than the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9), or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) described in this subdivision (9). (10) "High-impact artificial intelligence systemHigh-impact artificial intelligence system"High-impact artificial intelligence system" means any artificial intelligence system, regardless of the number of parameters and supervision structure, that: (A) is used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decision; (ii) to categorize groups of persons by protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in a vehicle, a medical device, or the safety system of a vehicle or medical device; or (v) to engage in a synthetic relationship; or (B) 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.9 V.S.A. § 4193b(10)" means any artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2), regardless of the number of parameters and supervision structure, that: (A) is used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decisionConsequential decision"Consequential decision" means a decision that has either 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(3); (ii) to categorize groups of persons by protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in a vehicle, a medical device, or the safety system of a vehicle or medical device; or (v) to engage in a synthetic relationshipSynthetic relationship"Synthetic relationship" means a series of interactions between an individual and an artificial intelligence system that mimics human interaction and emotional responses.9 V.S.A. § 4193b(14); or (B) 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. (11) "Intimate visual depictionIntimate visual depiction"Intimate visual depiction" has the meaning as in 15 U.S.C. § 6851.9 V.S.A. § 4193b(11)" has the meaning as in 15 U.S.C. § 6851. (12) "Material factMaterial fact"Material fact" means any specific characteristic or quality of the product, but does not include a general opinion about, or praise of, the product or its quality.9 V.S.A. § 4193b(12)" means any specific characteristic or quality of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13), but does not include a general opinion about, or praise of, the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) or its quality. (13)(A) "ProductProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13)" means a high-impact artificial intelligence systemHigh-impact artificial intelligence system"High-impact artificial intelligence system" means any artificial intelligence system, regardless of the number of parameters and supervision structure, that: (A) is used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decision; (ii) to categorize groups of persons by protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in a vehicle, a medical device, or the safety system of a vehicle or medical device; or (v) to engage in a synthetic relationship; or (B) 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.9 V.S.A. § 4193b(10) or a generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" means an artificial intelligence system that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligence's training data.9 V.S.A. § 4193b(8). (B) "ProductProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13)" does not include a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) used strictly for peer-reviewed scientific research. (14) "Synthetic relationshipSynthetic relationship"Synthetic relationship" means a series of interactions between an individual and an artificial intelligence system that mimics human interaction and emotional responses.9 V.S.A. § 4193b(14)" means a series of interactions between an individual and an artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2) that mimics human interaction and emotional responses.

This section defines the key terms used throughout the subchapter, including the two covered entity types (Developer and Deployer) and the two covered platform types (High-impact artificial intelligence system and Generative artificial intelligence system). The term Product encompasses both platform types but excludes systems used strictly for peer-reviewed scientific research. Notable features include the broad definition of Harm, which extends beyond physical injury to cover financial, reputational, emotional, and behavioral harm, and the inclusion of Synthetic relationship as a triggering use case for high-impact classification. The Deployer definition excludes individuals and small businesses with fewer than 20 employees or fewer than 10,000 users.

9 V.S.A. § 4193c
Developer liability
Developer

(a) 1 Limited liability. In a productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) liability action pursuant to this subchapter, 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.9 V.S.A. § 4193b(6) shall be liable to a plaintiff only if the plaintiff establishes 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.9 V.S.A. § 4193b(6) failed to exercise reasonable care with respect to: (1) the design of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13), and that the defective designDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5) was a proximate cause of harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) to the plaintiff; (2) providing adequate instructions or warnings applicable to the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) that caused the harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) that is the subject of the complaint, and that the failure to provide adequate instructions or warnings was a proximate cause of harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) to the plaintiff; or (3) providing an express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7) applicable to the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) that caused the harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) that is the subject of the complaint, and that the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) failed to conform to the warranty, which caused harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) to the plaintiff.

(b)(1)–(2) 1 In an action alleging that a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) is unreasonably dangerous because of a defective designDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5), the plaintiff shall prove by a preponderance of the evidence that, at the time the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) left 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.9 V.S.A. § 4193b(6)'s control: (A) 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.9 V.S.A. § 4193b(6) knew or, considering then-existing scientific and technical knowledge, reasonably should have known of the danger that caused the plaintiff's harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9); (B) 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.9 V.S.A. § 4193b(6) accounted for both intended uses and reasonably foreseeable unintended uses of 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.9 V.S.A. § 4193b(6)'s systems; and (C) there existed a technologically feasible and practical alternative designDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5), including a consideration of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) release and method of development, that would have reduced or avoided a foreseeable risk of harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) without significantly impairing the usefulness of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) to the group of persons who are the intended and legitimate users of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). (2) For purposes of subdivision (1)(C) of this subsection: (A) "Method of development" means the selection of training data used for the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) and includes training, testing, auditing, and fine-tuning of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). (B) "ProductProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) release" means the specific way in which a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) is integrated and made accessible within a production environment, including how it interacts with data sources, delivers predictions or results, and is accessed by users

(c)(1)–(2) 2 The plaintiff shall prove by a preponderance of the evidence that, at the time the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) left 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.9 V.S.A. § 4193b(6)'s control, 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.9 V.S.A. § 4193b(6) knew or, considering then-existing scientific and technical knowledge, reasonably should have known of the danger that caused the plaintiff's harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9). (2)(A) 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.9 V.S.A. § 4193b(6) shall not be liable for failure to provide adequate instruction or warning about a danger that is known or open and obvious to the user or consumer of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) or should have been known or open and obvious to the user or consumer of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13), considering the characteristics of, and the ordinary knowledge common to, the persons who ordinarily use or consume the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). (B) A danger is presumed to not be open and obvious to a user or consumer of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) who is under 18 years of age.

(d)(1)–(3) 3 Express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7). A productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) may be unreasonably dangerous because it did not conform to an express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7) only if the plaintiff proves by a preponderance of the evidence that: (1) the plaintiff reasonably relied on an express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7) made by 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.9 V.S.A. § 4193b(6) about a material factMaterial fact"Material fact" means any specific characteristic or quality of the product, but does not include a general opinion about, or praise of, the product or its quality.9 V.S.A. § 4193b(12) concerning the safety of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13); (2) this express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7) proved to be untrue; and (3) had the representation been true, the plaintiff would not have been harmed.

(e)(1)–(6) 4 Safe harbor for developersDeveloper"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.9 V.S.A. § 4193b(6). In a productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) liability action brought against 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.9 V.S.A. § 4193b(6) pursuant to this subchapter, a court shall recognize a rebuttable presumption that a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) is not defective if, and only if, that 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.9 V.S.A. § 4193b(6) has: (1) conducted a documented testing, evaluation, verification, validation, and auditing of that system consistent with industry best practices; (2) mitigated foreseeable risks to the extent possible and has considered alternatives; (3) disclosed foreseeable risks and mitigation tactics directly to deployersDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) and consumers using the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13); (4) maintained and made available upon request by the Attorney General an artificial intelligence data sheet that includes, at a minimum, the following information: (A) information on the intended contexts and uses of the artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2) in accordance with industry best practices; (B) information regarding the datasets upon which the artificial intelligence systemArtificial intelligence system"Artificial intelligence system" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.9 V.S.A. § 4193b(2) was trained, including sources, volume, whether the dataset is proprietary, and how the datasets further the intended purpose of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13); (C) accounting of foreseeable risks identified and steps taken to manage them consistent with industry best practices; and (D) results of red-teaming testing and steps taken to mitigate identified risks, consistent with industry best practices; (5) if the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) is designed for or is reasonably likely to be used by individuals under 18 years of age: (A) documented assessments of use of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13)'s impact on cognitive and emotional development; (B) implemented age-gating or content restrictions for a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) that poses foreseeable risks; and (C) provided to deployersDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) and direct consumers and their guardians clear, accessible disclosures about potential risks; and (6) prominently included in the terms and conditions of a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) the information included in the artificial intelligence data sheet maintained pursuant to subdivision (4) of this subsection, which deployers of such productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) may rely upon when making fit-for-use and deployment decisions.

This section establishes the core liability framework for developers. It imposes a negligence-based standard rather than strict liability, requiring the plaintiff to prove the developer failed to exercise reasonable care in one of three domains: product design, provision of adequate warnings or instructions, or conformance with an express warranty. Each theory requires proof that the deficiency proximately caused the plaintiff's harm.

The design-defect subsection codifies a risk-utility test requiring proof that a technologically feasible and practical alternative design — encompassing both the method of development (training data selection, testing, auditing, fine-tuning) and the product release configuration — would have reduced foreseeable harm without significantly impairing usefulness. The failure-to-warn subsection creates a knowledge-based standard and includes an important minor-protection provision: dangers are presumed not open and obvious to users under 18.

Subsection (e) creates a safe harbor providing a rebuttable presumption of non-defectiveness if the developer satisfies six enumerated conditions, including documented testing and auditing, risk mitigation, risk disclosure to deployers and consumers, maintenance of an AI data sheet available to the AG, minor-specific impact assessments and age-gating (when applicable), and prominent inclusion of data sheet information in product terms and conditions.

Compliance actions 4 items
1
DevelopersDeveloper"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.9 V.S.A. § 4193b(6) must exercise reasonable care in the design of AI productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13), accounting for both intended uses and reasonably foreseeable unintended uses, ensuring no defective designDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5) that could cause harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) when a technologically feasible and practical alternative designDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5) exists.
S-01.1
2
DevelopersDeveloper"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.9 V.S.A. § 4193b(6) must provide adequate warnings or instructions about known or reasonably knowable dangers of their AI productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). Dangers are presumed not open and obvious to users under 18 years of age.
S-02.10
3
DevelopersDeveloper"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.9 V.S.A. § 4193b(6) must ensure their AI productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) conform to any express warranties made about material factsMaterial fact"Material fact" means any specific characteristic or quality of the product, but does not include a general opinion about, or praise of, the product or its quality.9 V.S.A. § 4193b(12) concerning productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) safety. A productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) that fails to conform to an express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7) on which a consumer reasonably relied may be deemed unreasonably dangerous.
4
DevelopersDeveloper"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.9 V.S.A. § 4193b(6) seeking the safe-harbor presumption of non-defectiveness must (1) conduct documented testing, evaluation, verification, validation, and auditing consistent with industry best practices, (2) mitigate foreseeable risks, (3) disclose foreseeable risks and mitigation tactics to deployersDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) and consumers, (4) maintain an AI data sheet covering intended uses, training datasets, foreseeable risks, and red-teaming results available to the Attorney General on request, (5) for productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) designed for or likely used by minors, document impact assessments on cognitive and emotional development, implement age-gating or content restrictions, and provide clear risk disclosures to deployersDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4), consumers, and guardians, and (6) prominently include the AI data sheet information in the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13)'s terms and conditions.
S-01.1
9 V.S.A. § 4193d
Deployer liability
Deployer

(a)(1)–(2) 5 Liability as 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.9 V.S.A. § 4193b(6). A deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) shall be deemed to be liable as 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.9 V.S.A. § 4193b(6) pursuant to section 4193c of this subchapter, subject to subsections (b) and (c) of this section, for harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) caused by a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) if the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4): (1) makes a material and substantial change to the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13); or (2) intentionally misuses the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) contrary to an express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7) provided by the developer of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) and that misuse was a proximate cause of harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) to the plaintiff.

(b) Intended use. Use of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) by a deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) that was an intended use by the developer of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) is not misuse or alteration nor does it constitute a material or substantial change of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13). 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.9 V.S.A. § 4193b(6) does not specify an intended use for the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13), intended use shall be inferred by the targeted market and manner of distribution.

(c) Licensing. A deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) licensing a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) shall not be liable to a plaintiff for a violation of subsection 4193c(a) of this subchapter solely due to the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4)'s ownership or use of the productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13).

(d)(1)–(4) 6 Safe harbor for deployersDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4). In a productsProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) liability action brought pursuant to this subchapter against a deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4), a court shall recognize a rebuttable presumption that a productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) is not defective if, and only if, the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) has designed and implemented a risk management policy that: (1) specifies the principles, processes, and personnel that the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) shall use in maintaining the risk management policy to identify, mitigate, and document any risk, especially those impacting individuals under 18 years of age, that is a reasonably foreseeable consequence of deploying or using such a system; (2) is consistent with industry best practices; (3) is reasonable considering the: (A) size and complexity of the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4); (B) nature and scope of the system, including the intended uses and unintended uses and the modifications made to the system by the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4); and (C) data that the system, once deployed, processes as inputs; and (4) is electronically available to employees of the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) and to the Attorney General upon request.

This section defines the conditions under which a deployer faces liability equivalent to that of a developer. Deployer liability triggers only when the deployer materially and substantially changes the product or intentionally misuses it contrary to an express warranty provided by the developer. Use consistent with the developer's intended use is not misuse and does not constitute a material change. A deployer who merely licenses and deploys a product is shielded from developer-equivalent liability solely on the basis of ownership or use.

Subsection (d) creates a parallel safe harbor for deployers, establishing a rebuttable presumption of non-defectiveness if the deployer maintains a risk management policy that specifies the principles, processes, and personnel for risk identification and mitigation — with particular attention to risks affecting minors — is consistent with industry best practices, is reasonable considering the deployer's size, the system's nature, and its input data, and is electronically available to employees and the Attorney General.

Compliance actions 2 items
5
DeployersDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) who materially and substantially change an AI productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13), or who intentionally misuse it contrary to 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.9 V.S.A. § 4193b(6)'s express warrantyExpress warranty"Express warranty" means any material, positive statement, affirmation of fact, promise, or description relating to a product, including any sample or model of a product.9 V.S.A. § 4193b(7), are liable as developersDeveloper"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.9 V.S.A. § 4193b(6) — subject to the same designDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5)-defect, failure-to-warn, and express-warranty standards applicable to developersDeveloper"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.9 V.S.A. § 4193b(6).
S-01.1
6
DeployersDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) seeking the safe-harbor presumption of non-defectiveness must designDesign"Design" means the intended or known physical and material characteristics of a product and includes any intended or known formulation or content of the product and the usual result of the intended development or other process used to produce the product, which includes unexpected skills or behaviors that appear in a product.9 V.S.A. § 4193b(5) and implement a risk management policy that specifies principles, processes, and personnel for identifying, mitigating, and documenting foreseeable risks (with emphasis on risks to minors), is consistent with industry best practices, is proportionate to the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4)'s size and the system's nature, and is electronically available to employees and to the Attorney General upon request.
G-01.1
9 V.S.A. § 4193e
Applicability

(a) Supplemental. This subchapter shall supplement any existing common law tort liability and State productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) liability laws and shall not prohibit any productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) liability cause of action involving a generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" means an artificial intelligence system that can generate derived synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligence's training data.9 V.S.A. § 4193b(8) or a high-impact artificial intelligence systemHigh-impact artificial intelligence system"High-impact artificial intelligence system" means any artificial intelligence system, regardless of the number of parameters and supervision structure, that: (A) is used, or reasonably foreseeable as being used: (i) as a controlling factor in making a consequential decision; (ii) to categorize groups of persons by protected characteristics, such as race, ethnic origin, or religious belief; (iii) in the direct management or operation of critical infrastructure; (iv) in a vehicle, a medical device, or the safety system of a vehicle or medical device; or (v) to engage in a synthetic relationship; or (B) 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.9 V.S.A. § 4193b(10) brought under a different claim pursuant to productProduct(A) "Product" means a high-impact artificial intelligence system or a generative artificial intelligence system. (B) "Product" does not include a product used strictly for peer-reviewed scientific research.9 V.S.A. § 4193b(13) liability common law or statute.

(b)(1)–(2) the court shall apply a comparative negligence standard, whereby a plaintiff's recovery shall be diminished in proportion to the percentage of fault attributable to the plaintiff, and developersDeveloper"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.9 V.S.A. § 4193b(6) and deployersDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) may be held jointly and severally liable for the portion of harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) that contributed to the plaintiff's injury; and (2) the damages for which a deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) is otherwise liable shall be reduced by the percentage of responsibility for the plaintiff's harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) attributable to a violation of section 4193c of this subchapter by another person if the deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) establishes that such percentage of the plaintiff's harmHarm"Harm" means: (A) damage to property other than the product itself; (B) personal physical, financial, or reputational injury; (C) illness or death; (D) mental or psychological anguish, emotional harm, or distortion of a person's behavior that would be highly offensive to a reasonable person; or (E) any loss of consortium or services or other loss deriving from any type of harm described in this subdivision (9).9 V.S.A. § 4193b(9) was proximately caused by a violation of section 4193c of this subchapter.

This section establishes the relationship between the new AI liability framework and existing law. The subchapter supplements — rather than displaces — existing common law tort liability and state product liability statutes, preserving all existing causes of action. It codifies a comparative negligence standard with joint and several liability among developers and deployers, and allows deployers to reduce their damages by proving what percentage of the plaintiff's harm was proximately caused by a developer's violation.

9 V.S.A. § 4193f
Enforcement

(a) 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.9 V.S.A. § 4193b(6) or deployerDeployer(A) "Deployer" means a person, including a developer, that operates an artificial intelligence system for internal use or for use by a third party. (B) "Deployer" does not include an individual or a small business. For purposes of this definition, a small business is one with fewer than 20 employees or that has fewer than 10,000 users of its product.9 V.S.A. § 4193b(4) that violates this subchapter or rules adopted pursuant to this subchapter commits an unfair and deceptive act in commerce in violation of section 2453 of this title.

(b) The Attorney General shall have the same authority under this subchapter to make rules, conduct civil investigations, bring civil actions, and enter into assurances of discontinuance as provided under chapter 63 of this title.

This section establishes dual enforcement mechanisms. First, any violation of the subchapter constitutes an unfair and deceptive act in commerce under 9 V.S.A. § 2453, automatically bringing violations within the scope of Vermont's Consumer Protection Act. Second, the Attorney General is granted the full range of enforcement powers available under chapter 63 of title 9, including rulemaking authority, civil investigations, civil actions, and authority to enter into assurances of discontinuance. This layered enforcement structure means developers and deployers face both private tort liability and public enforcement risk.

Sec. 2
Effective date

This act shall take effect on July 1, 2026.

The act takes effect on July 1, 2026.

Passage Likelihood

Medium
Status Introduced
Chamber No passage
Committee No action
Majority party Yes
Bipartisan Yes
Prior session None

Legislative History

2026-01-28 Read first time and referred to the Committee on Commerce and Economic Development

Entry Last Reviewed

2026-05-20
AI generated