OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-1103 AN ACT CONCERNING ARTIFICIAL INTELLIGENCE, AUTOMATED DECISION -MAKING AND PERSONAL DATA PRIVACY. As Amended by Senate "A" (LCO 7769) Senate Calendar No.: 151 Primary Analyst: WL 5/12/23 Contributing Analyst(s): Reviewer: MM OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 24 $ FY 25 $ Judicial Dept. GF - Potential Cost See Below See Below Policy & Mgmt., Off. GF - Cost 100,000 See Below Department of Administrative Services GF - Potential Cost See Below See Below Note: GF=General Fund Municipal Impact: None Explanation The bill makes various changes regarding artificial intelligence systems resulting in the following impacts. Section 1, which requires the Department of Administrative Services (DAS) to inventory and assess all systems used by the state that use artificial intelligence, is anticipated to have no cost to DAS in FY 24 and FY 25 due to a lack of systems using artificial intelligence. The cost may grow in the future to the extent the state begins to purchase or develop systems that leverage artificial intelligence. Section 2 requires the Office of Policy and Management (OPM) to develop policies and procedures related to artificial intelligence by February 1, 2024. This results in a one-time cost of $100,000 in FY 24 to OPM for consultants. 2023SB-01103-R01-FN.DOCX Page 2 of 2 Section 3, which requires the Judicial Department to inventory and assess all systems used by the Judicial Department that use artificial intelligence, is anticipated to have no cost to the department in FY 24 and FY 25 due to a lack of systems using artificial intelligence. The cost may grow in the future to the extent the department begins to purchase or develop systems that leverage artificial intelligence. Section 4, which requires contracts to include a provision that businesses comply with certain requirements, has no cost to the state. Section 5 creates an artificial intelligence working group resulting in no fiscal impact to the state because the working group has the expertise to meet the requirements of the amendment. Senate “A” strikes the underlying bill and its associated fiscal impact. The Out Years The fiscal impact to the state in the out years will grow to the extent the state begins to purchase or develop artificial intelligence systems. The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.