On February 25, Connecticut AG William Tong released a memorandum explaining how existing Connecticut laws may apply to artificial intelligence systems used in activities such as tenant screening, employment decisions, credit risk and loan determinations, insurance claims, and targeted consumer advertising. The memorandum outlines several statutory frameworks the Office of the Attorney General may use when addressing AI-related conduct, including Connecticut’s civil rights laws, the Connecticut Data Privacy Act, the Connecticut Unfair Trade Practices Act, and the Connecticut Antitrust Act.
The memorandum explains that existing anti-discrimination laws apply to automated decision-making in the same way they apply to traditional business practices. Connecticut statutes prohibit discrimination in areas such as employment, housing, insurance, and lending based on protected characteristics. The memorandum also notes that federal anti-discrimination statutes may apply to AI-based decision tools, including the Equal Credit Opportunity Act, which requires adverse action notices when credit decisions are made using algorithmic models.
The memorandum also outlines several existing legal frameworks that may apply when businesses develop or deploy AI systems:
- Civil rights laws. Anti-discrimination laws apply to algorithmic decision-making in areas such as employment, housing, insurance, and lending.
- Privacy obligations. The Connecticut Data Privacy Act grants consumers rights to access, delete, correct, and opt out of certain uses of their personal data.
- Data security requirements. Connecticut’s Safeguards Law and Breach Notification Law require businesses to protect personal information and report certain data breaches.
- Consumer protection and antitrust laws. The Connecticut Unfair Trade Practices Act and Connecticut Antitrust Act may apply where AI is used in deceptive practices or anticompetitive conduct.
Putting It Into Practice: State lawmakers and regulators are actively considering how AI systems may affect consumer finance and other commercial decision-making (previously discussed here). Connecticut’s memorandum reflects another approach: applying existing consumer protection, privacy, anti-discrimination, and competition laws to AI-related conduct rather than creating a new regulatory framework. While the memorandum states that it is ”neither binding nor precedential” it does provide insight as to how the AG will tackle the issues in the future.
