Massachusetts House Bill H97

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

Protecting consumers in interactions with artificial intelligence systems

Impact

This bill significantly impacts existing state laws by mandating that developers and deployers of high-risk AI systems adopt proactive measures to identify and mitigate algorithmic discrimination. Under the new regulations, developers must provide documentation concerning the risks associated with their systems and consumers must be informed when they are interacting with AI. The implications of these regulations could reshape industries that rely heavily on AI, as compliance with these requirements may necessitate changes in operational procedures, algorithm transparency, and consumer engagement strategies.

Summary

House Bill 97 aims to protect consumers in interactions with artificial intelligence (AI) systems by establishing a comprehensive framework for managing algorithmic discrimination and ensuring accountability from AI developers and deployers. The bill introduces a new chapter to the Massachusetts General Laws, specifically detailing the requirements for risk management policies, disclosure practices, and compliance measures for high-risk AI systems. The overarching goal is to mitigate potential harms caused by AI's decision-making processes affecting essential consumer services such as employment, housing, and financial services.

Contention

Notable points of contention surrounding HB 97 include concerns over the feasibility of implementing the required risk management frameworks, particularly for smaller businesses and startups. Critics argue that the compliance burden could stifle innovation in the rapidly growing AI sector by placing excessive regulatory demands on them. Moreover, there are discussions on the definition of 'high-risk' AI systems, as this classification could vary based on different interpretations of algorithmic impacts, leading to potential discrepancies in enforcement. Proponents of the bill emphasize the need for consumer safeguards against algorithmic bias and discrimination, arguing that these measures are essential for fostering trust in AI technologies.