Connecticut’s new AI law creates compliance obligations for employers | Constangy, Brooks, Smith & Prophete, LLP

Growing AI Use in Recruiting and Performance Evaluation: Employers are increasingly using AI-powered tools to help in hiring, evaluating candidates, assessing performance, forecasting staffing needs, and aiding in personnel decisions.
Connecticut’s New AI Legislation: Connecticut recently enacted the Connecticut Artificial Intelligence Responsibility and Transparency Act that imposes requirements on the use of certain AI tools in employment-related decisions.
Prohibited AI Usage and Scope of Regulation: The Act applies to all Automated Employment-Related Decision Technology (AEDT) that substantially affects employment-related decisions such as hiring, firing, promotion, or terms of employment.
Notice and Transparency Requirements: Effective from October 1, 2027, employers must disclose when AEDT is being used. They are to provide specific information about the AI system, which includes its purpose, data sources, and the nature of the decision involved.
Employer Responsibility and Anti-Discrimination: Employers remain liable for outcomes generated by AEDT. While the law does not mandate anti-bias testing, employers’ proactive measures against bias can be considered in court.
Proactive AI Governance: Businesses are encouraged to autonomously assess their AI use, implement governance controls, and establish oversight mechanisms to comply with the evolving legal landscape.

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