SB 167: Commerce and Trade; private entities that employ certain AI systems to guard against discrimination caused by such systems; provide

Georgia has no current law specifically governing AI systems used to make significant decisions about people. This bill would add a new chapter to state commerce law covering developers (companies that build or substantially change AI systems) and deployers (businesses that use them) when those systems help make 'consequential decisions' in areas like employment, housing, healthcare, credit, insurance, education, and legal services. Developers and deployers would have to evaluate their systems for 'algorithmic discrimination,' meaning bias against people based on protected traits like race, age, disability, or sex. They would need to disclose information to the Attorney General and, in many cases, to the public, and notify consumers when an automated system is used in a decision about them, explaining the factors involved and how to appeal. Small deployers using a system for fewer than 1,000 consumers a year and meeting other conditions are exempt from some requirements. Trade secrets can be redacted, and certain disclosed records are exempt from Georgia's open records law. The Attorney General would enforce the law through the state's Fair Business Practices Act and could write additional rules.

• Bans developers from selling AI systems that result in algorithmic discrimination, and bans deployers from using such systems in a discriminatory way.
• Requires developers to disclose to the Attorney General and to deployers detailed information about how their AI systems work, their risks, and mitigation steps.
• Requires deployers to adopt a risk management program and complete annual impact assessments for AI systems used in consequential decisions.
• Requires deployers to notify consumers before and after an AI system is used in a decision about them, including an explanation of the outcome and appeal rights.
• Exempts small deployers (fewer than 15 employees, fewer than 1,000 affected consumers a year) from some of the risk management and assessment rules.
• Lets the Attorney General enforce the law under Georgia's Fair Business Practices Act and shields certain disclosed records from open records requests.

Companies that build or substantially modify AI systems (developers) and Georgia businesses that use them (deployers) in employment, housing, healthcare, lending, insurance, education, or legal services decisions, as well as Georgia consumers whose applications or benefits are evaluated by these systems, and the Attorney General's office, which would gain new enforcement duties.

Georgians affected by AI-driven decisions, like job applications, loan approvals, or housing screening, would gain a right to notice, an explanation, and a way to appeal, while businesses using these tools would face new compliance costs including audits, disclosures, and potential Attorney General enforcement.

• Code Section 10-16-1 defines key terms including 'algorithmic discrimination,' 'automated decision system,' and 'consequential decision,' covering education, employment, healthcare, housing, insurance, credit, and legal services.
• Code Section 10-16-2 requires developers to disclose to the Attorney General and to deployers information about a system's purpose, risks, and mitigation measures, and bans selling systems that cause discrimination.
• Code Section 10-16-3 requires deployers to implement a risk management program and complete impact assessments at least annually and after major system changes.
• Code Section 10-16-4 requires deployers to notify consumers before using an automated system in a consequential decision and to explain the outcome within one business day, including appeal rights.
• Code Section 10-16-6 exempts small deployers (fewer than 15 employees, affecting fewer than 1,000 consumers per year) from certain risk management and assessment duties if specific conditions are met.
• Code Sections 10-16-8 and 10-16-9 allow trade secret redactions and exempt Attorney General disclosures from Georgia's open records law (O.C.G.A. Title 50, Chapter 18, Article 4).
• Code Section 10-16-13 makes violations enforceable under the Fair Business Practices Act of 1975 and creates an affirmative defense for companies that self-discover and quickly cure violations.
• Code Section 10-16-14 authorizes the Attorney General to write additional rules to implement and enforce the chapter.

1. 2025-02-13Senate Read and Referred (Senate)
2. 2025-02-12Senate Hopper (Senate)

• Nikki Merritt (D, SD-009)Primary sponsor
• Harold Jones (D, SD-022)
• RaShaun Kemp (D, SD-038)
• Nabilah Islam Parkes (D, SD-007)
• Michael Rhett (D, SD-033)
• Donzella James (D, SD-028)
• Elena Parent (D, SD-044)
• Kenya Wicks (D, SD-034)
• Sally Harrell (D, SD-040)
• Randal Mangham (D, SD-055)

• artificial intelligence regulation
• consumer protection
• algorithmic discrimination
• employment and hiring
• Attorney General enforcement