The enactment of HB 5116 could significantly affect various sectors that rely on automated decision-making, including employment, education, housing, and healthcare. By requiring deployers to maintain a governance program and report their assessments to the Department of Human Rights, the bill aims to safeguard individuals from algorithmic biases. Furthermore, the Attorney General is granted the authority to initiate civil actions against deployers for violations of this act, thereby reinforcing accountability in the use of automated tools.
Summary
House Bill 5116, also known as the Automated Decision Tools Act, establishes a regulatory framework for the use and deployment of automated decision tools. It mandates that any deployer of automated decision tools perform an annual impact assessment starting from January 1, 2026. This assessment must analyze the potential risks of algorithmic discrimination, which is defined as the unjust differential treatment of individuals based on protected characteristics such as race, gender, and age. The bill highlights the importance of transparency in automated decision-making processes by requiring deployers to inform affected individuals when such tools are used in consequential decisions.
Contention
Despite its intentions, the bill has generated discussions regarding its implications for businesses and technological innovation. Critics argue that the stringent requirements for impact assessments and governance may hinder the development and deployment of beneficial AI technologies, posing a challenge for smaller companies that may lack the resources to comply. Supporters, however, assert that the bill is essential for protecting civil rights and ensuring equitable treatment in an era increasingly governed by automated processes. The tension between regulation and innovation is likely to persist as this legislation is discussed further.
Regulates automated decision-making by government agencies; requires agencies to conduct impact assessments; requires disclosure of automated decision-making tools utilized by governmental agencies.
Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions; allows loan applicants to consent to or opt out of such use.
Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions; allows loan applicants to consent to or opt out of such use.
Regulates automated decision-making by government agencies; requires agencies to conduct impact assessments; requires disclosure of automated decision-making tools utilized by governmental agencies.
Creates requirements for the developers or deployers of artificial intelligence and allows civil action against these developers or deployers by the attorney general and local solicitors.