GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 747
Short Title: AI Learning Agenda. (Public)
Sponsors: Senator Salvador (Primary Sponsor).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S747 -v-1*
A BILL TO BE ENTITLED 1
AN ACT ESTABLISHING THE OFFICE OF ARTIFICIAL INTELLIGENCE POLICY AND 2
CREATING THE AI LEARNING LABORATORY PROG RAM. 3
Whereas, artificial intelligence technologies are transforming economies, societies, 4
and industries globally, requiring proactive exploration of their implications for North Carolina; 5
and 6
Whereas, this act establishes an iterative, stakeholder-informed learning model to 7
support thoughtful, evidence-based governance of AI technologies; Now, therefore, 8
The General Assembly of North Carolina enacts: 9
SECTION 1. The General Assembly finds it essential to proactively explore artificial 10
intelligence technologies through an inclusive and iterative learning model that promotes 11
innovation while protecting consumer interests and civil rights. 12
SECTION 2. Chapter 114 of the General Statutes is amended by creating a new 13
Article to read: 14
"Article 11. 15
"Artificial Intelligence Learning Laboratory. 16
"§ 114-75. Definitions. 17
The following definitions apply in this Article: 18
(1) Applicant. – A person that applies for participation in the regulatory Learning 19
Laboratory. 20
(2) Learning Agenda. – The areas of artificial intelligence applications, risks, and 21
policy considerations selected by the Office established by this act for focus 22
by the Learning Laboratory. 23
(3) Learning Laboratory. – The artificial intelligence analysis and research 24
program created in this a ct. 25
(4) Office. – The Office of Artificial Intelligence Policy created in this act. 26
(5) Participant. – A person that is accepted to participate in the Learning 27
Laboratory. 28
(6) Regulatory mitigation. – When restitution to users may be required, the (i) 29
terms and conditions related to any cure period before penalties may be 30
assessed, (ii) any reduced civil fines during the participation term; and (iii) 31
any other terms tailored to identified issues of the artificial intelligence 32
technology. 33
(7) Regulatory mitigation agreement. – An agreement between a participant, the 34
Office and relevant State agencies entered into under this act. 35 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 747-First Edition
(8) State agency or agency. – A State agency, department, or institution in the 1
executive or legislative branches of government or a political subdivision of 2
the State. 3
"§ 114-76. Office of Artificial Intelligence Policy. 4
(a) The Office of Artificial Intelligence Policy is created in the Department of Commerce. 5
The Secretary of Commerce shall appoint a Director to oversee the management and operations 6
of the office and adopt rules to carry out the purposes of this section. 7
(b) The purposes of the Office are to do all of the following: 8
(1) Identify regulatory barriers to artificial intelligence (AI) development, 9
deployment, and use in North Carolina and recommend regulatory proposals 10
to remove or avoid such barriers. 11
(2) Identify regulatory gaps where existing law is insufficient to prevent or redress 12
substantial, non-speculative, concrete, and redressable harm and recommend 13
regulatory proposals to fill such gaps. 14
(3) Conduct an inventory of existing State regulation of AI technology. 15
(4) Create and administer an Artificial Intelligence Learning Laboratory program. 16
(5) Consult with businesses and other stakeholders in the state about potential 17
regulatory proposals. 18
(6) Consult with Learning Laboratories or similar bodies in other states. 19
(7) Establish and convene a multidisciplinary AI Learning Advisory Panel 20
composed of academic experts, industry representatives, legal scholars, and 21
civil society organizations to provide input into the learning agenda and 22
ongoing evaluations. 23
(c) At a minimum, rules adopted under this Article shall concern the following: 24
(1) Procedures, requirements, and fees to apply to participate in the learning 25
laboratory program and criteria for invitation, acceptance, denial, or removal 26
of participants. 27
(2) Data usage limitations and cybersecurity criteria for participants. 28
(3) Required participant disclosures to consumers. 29
(4) Reporting requirements for participants to the Office. 30
(5) Criteria for limited extension of the participation period. 31
(6) Other requirements as necessary to administer the Learning Laboratory. 32
(c1) The Office shall maintain a public registry of Learning Laboratory participants and 33
publish summary reports of research findings, best practices, and policy recommendations, 34
excluding proprietary or security-sensitive information. 35
(d) Beginning July 1, 2026, the Office shall report annually to the General Assembly 36
about the following: 37
(1) The proposed learning agenda for the Learning Laboratory. 38
(2) The findings, participation, and outcomes of the Learning Laboratory. 39
(3) Recommended legislation from findings from the inventories and Learning 40
Laboratory. 41
(4) A review of the effectiveness of the Learning Laboratory model, and whether 42
any elements should be codified into permanent regulatory structures, 43
expanded, or sunset. 44
"§ 114-77. State AI inventory. 45
(a) By October 1, 2026, each State agency may compile, in a form specified by the Office, 46
an inventory of all artificial intelligence technologies that are in use by the State agency or being 47
developed or considered by the State agency for use. The inventory shall be submitted to the 48
Office, the Secretary of Commerce, the Governor, the Speaker of the House of Representatives, 49
the President Pro Tempore of the Senate, and the Chairs and Ranking Minority Members of the 50
Joint Legislative Commission on Governmental Operations. By March 1, 2026, the Office may 51 General Assembly Of North Carolina Session 2025
Senate Bill 747-First Edition Page 3
prescribe a form for use by State agencies for compilation and submission of the inventory 1
required by this subsection. This inventory shall include the following information for each 2
artificial intelligence technology included in the inventory: 3
(1) The vendor of the artificial intelligence technology. 4
(2) A description of the function and capabilities of the artificial intelligence 5
technology. 6
(3) A description of (i) the purpose or purposes for which the state agency uses 7
the artificial intelligence technology; (ii) any purpose for which the agency 8
contemplates using the artificial intelligence technology in the future; and (iii) 9
examples of the data or information produced by the artificial intelligence 10
technology for each purpose. 11
(4) Whether the artificial intelligence technology provides the agency with 12
information or data that is used by the State agency to inform decisions made 13
by the agency; or decisions, without human intervention, that are implemented 14
by the agency. 15
(5) The types of information or data used by the artificial intelligence technology 16
and the source of the information used by the artificial intelligence 17
technology. 18
(6) The manner in which the State agency secures the following from 19
unauthorized access: 20
a. Artificial intelligence technology. 21
b. Information or data used by the artificial intelligence technology; and 22
c. Information or data produced by the artificial intelligence technology. 23
(7) Any person with which the State agency shares the information or data 24
produced by the artificial intelligence technology and the purpose for which 25
the state agency shares the information or data with the person. 26
(8) The documented or anticipated benefits and risks of the state agency's use of 27
the artificial intelligence technology for both the State agency and State 28
residents served by the agency. 29
(9) Any information or data used by the State agency to assess the benefits and 30
risks of the agency's use of the artificial intelligence technology. 31
(10) The fiscal effect of the State agency's use of the artificial intelligence 32
technology, including the following: 33
a. Costs associated with the artificial intelligence technology, including 34
initial acquisition or development costs and ongoing operating costs, 35
including costs of licensing, maintenance, legal compliance, and data 36
storage and security. 37
b. Any funding source that is used, or could be used, by the state agency 38
to defray the costs described. 39
c. An estimate of the degree to which the costs described are offset by a 40
reduction in the State agency's operating costs attributable to the 41
agency's use of the artificial intelligence technology. 42
(11) Whether the artificial intelligence technology has been tested or evaluated by 43
an independent third party. 44
(12) Whether the data or information produced by the artificial intelligence 45
technology has been evaluated for bias against constitutionally protected 46
classes of individuals, found to exhibit bias, and adjusted to mitigate any such 47
bias. 48
(b) By January 1, 2027, the Office, in consultation with relevant State agencies, shall 49
conduct a comprehensive analysis of the existing regulatory governance of artificial intelligence 50
technology in the State, as follows: 51 General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 747-First Edition
(1) Contents of Inventory. – The analysis conducted under this subsection shall 1
include all of the following: 2
a. A review of existing laws, regulations, executive orders, and state 3
agency rulemaking that pertain to the regulation of the development 4
and use of artificial intelligence technology within the State. 5
b. An assessment of the specific category of artificial intelligence use 6
governed by each existing law, regulation, executive order, and State 7
agency rulemaking, and whether each achieves its purpose without 8
impeding the development and use of artificial intelligence 9
technology. 10
c. An identification of any gaps where existing law, regulation, executive 11
order, and state agency rulemaking are insufficient to prevent or 12
redress substantial, non-speculative, concrete, and redressable harm 13
from a specific use of artificial intelligence technology. 14
d. An identification of state agencies that possess statutory authority to 15
regulate development and use of artificial intelligence technology. 16
(2) Submission of Analysis. – Upon completion of the analysis under this 17
subsection, the Office shall submit the findings to the Secretary of Commerce, the Governor, the 18
Speaker of the House of Representatives, the President of the Pro Tempore of the Senate, and the 19
Chairs and Ranking Minority Members of the Joint Legislative Commission on Governmental 20
Operations. 21
"§ 114-78. AI Learning Laboratory Program. 22
(a) There is established the Artificial Intelligence Learning Laboratory Program, to be 23
administered by the Office. The purpose of the Learning Laboratory is to: 24
(1) Analyze and research the benefits, risks, impacts, and policy implications of 25
artificial intelligence technologies to inform the state regulatory framework. 26
(2) Encourage development of artificial intelligence technologies in the State. 27
(3) Evaluate the effectiveness and viability of current, potential, or proposed 28
regulation on artificial intelligence technologies in cooperation with artificial 29
intelligence developers. 30
(4) Produce findings and recommendations for legislation and regulation of 31
specific artificial intelligence uses. 32
(5) Analyze how AI technologies affect individual rights, fairness, and the public 33
interest, including impacts on protected classes and opportunities for bias 34
mitigation. 35
(b) The Office shall periodically set a learning agenda for the Learning Laboratory that 36
establishes the specific areas of artificial intelligence policy the office intends to study. The initial 37
learning agenda shall include identifying specific categories of artificial intelligence uses with 38
similar profiles of benefits, risks, impacts, and associated regulatory bodies. In establishing the 39
learning agenda, the office may consult with relevant agencies, industry leaders, academic 40
institutions in the State, and key stakeholders with relevant knowledge, experience, or expertise 41
in the area. The Office may invite and receive an application from a person to participate in the 42
Learning Laboratory. The Office shall establish the procedures and requirements for sending an 43
invitation and receiving requests to participate in the Learning Laboratory in accordance with the 44
purposes of the Learning Laboratory. Open-source projects shall be eligible for participation in 45
the Learning Laboratory. In selecting participants for the Learning Laboratory, the Office shall 46
consider each of the following: 47
(1) The relevance and utility of an invitee or applicant's artificial intelligence 48
technology to the learning agenda. 49
(2) The invitee or applicant's expertise and knowledge specific to the learning 50
agenda. 51 General Assembly Of North Carolina Session 2025
Senate Bill 747-First Edition Page 5
(3) Other factors identified by the Office as relevant to participation in the 1
Learning Laboratory. 2
(c) The Office shall work with participants to establish benchmarks and assess outcomes 3
of participation in the Learning Laboratory. 4
"§ 114-79. AI Learning Laboratory participation. 5
(a) The Office may approve an applicant to participate in the program. An approved 6
applicant becomes a participant by entering into a participation agreement with the Office and 7
relevant State agencies. Each participant shall provide required information to State agencies in 8
accordance with the terms of the participation agreement and report to the Office as required in 9
the participation agreement. A participant shall retain records as required by Office rule or the 10
participation agreement. A participant shall immediately report to the Office any incidents 11
resulting in consumer harm, privacy breach, or unauthorized data usage, which may result in 12
removal of the participant from the Learning Laboratory. 13
(b) A participant who uses or wants to utilize an artificial intelligence technology in the 14
State may apply for regulatory mitigation according to criteria and procedures outlined by the 15
Office by rule. The Office may grant, on a temporary basis, regulatory mitigation to a participant 16
by entering into a regulatory mitigation agreement with the Office and relevant agencies. To 17
receive regulatory mitigation, a participant must demonstrate that the applicant meets eligibility 18
criteria established under this Article. Any regulatory mitigation agreement between a participant 19
and the Office and relevant agencies shall specify limitations on scope of the use of the 20
participant's artificial intelligence technology, including (i) the number and types of users, (ii) , 21
geographic limitations and other limitations to implementation, and (iii) safeguards to be 22
implemented any regulatory mitigation granted to the applicant. The Office shall consult with 23
relevant agencies regarding appropriate terms in a regulatory mitigation agreement. A participant 24
remains subject to all legal and regulatory requirements not expressly waived or modified by the 25
terms of the regulatory mitigation agreement. The Office may remove a participant at any time 26
and for any reason, and the participant does not have an expectation of a property right or license 27
to participate in the Learning Laboratory. 28
(c) A participant demonstrating an artificial intelligence technology that violates legal or 29
regulatory requirements (considering any regulatory mitigation agreement), or that violates the 30
terms of the participation agreement, may be immediately removed from further participation 31
and subject to all applicable civil and criminal penalties. 32
(d) Participation in the Learning Laboratory does not constitute an endorsement or 33
approval from the State. 34
(e) Participation or non-participation in the Learning Laboratory does not constitute a 35
legally cognizable factor for any tort claim, civil law violation, or criminal law violation. 36
(f) The State shall not be responsible for any claims, liabilities, damages, losses, or 37
expenses arising out of a participant's involvement in the learning laboratory. 38
"§ 114-80. Regulatory mitigation eligibility. 39
(a) To be eligible for regulatory mitigation, a participant shall demonstrate all of the 40
following to the Office: 41
(1) That the participant has the technical expertise and capability to responsibly 42
develop and test the proposed artificial intelligence technology. 43
(2) The participant has sufficient financial resources to meet obligations during 44
testing. 45
(3) The artificial intelligence technology provides potential substantial consumer 46
benefits that may outweigh identified risks from mitigated enforcement of 47
regulations. 48
(4) The participant has an effective plan to monitor and minimize identified risks 49
from testing. 50 General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 747-First Edition
(5) The scale, scope, duration of proposed testing is appropriately limited based 1
on risk assessments. 2
(6) For participants with fewer than 50 employees or under $10 million in annual 3
revenue, the Office may adjust eligibility or reporting requirements to reflect 4
organizational capacity, while ensuring appropriate risk controls. 5
(b) To evaluate whether an applicant meets eligibility criteria to receive regulatory 6
mitigation, the Office may consult with relevant agencies and outside experts regarding the 7
application. 8
(c) An initial regulatory mitigation agreement shall be in force for no longer than 12 9
months. A participant may request a single 12-month extension for participation in the Learning 10
Laboratory period no later than 30 days before the end of the initial 12-month period. The Office 11
shall grant or deny an extension request before expiration of the initial demonstration period." 12
SECTION 3. This act is effective when it becomes law. 13