Virginia Passes New Law Regulating “High-Risk” AI

Virginia is poised to join Colorado and become the latest state to regulate high-risk AI systems. Virginia HB 2094 has passed the legislature and awaits the Governor’s signature. If signed into law HB 2094 will impose obligations on AI developers and deployers to limit algorithmic discrimination. In a recent memo, Faegre Drinker gives recommendations to entities subject to the new law:

“Organizations that develop or deploy AI systems affecting Virginia residents should:

1. Inventory AI systems to identify potential “high-risk” applications.
2. Update AI governance frameworks and risk management processes.
3. Develop procedures for impact assessments and documentation.
4. Implement consumer notice and appeal processes.
5. Evaluate qualification for statutory exemptions.”

Virginia’s law, while similar to Colorado’s, is more limited in scope, only affecting AI systems intended to operate autonomously and provide the principal basis for decision-making in specific high-risk areas. Laws like Virginia’s and Colorado’s are likely to become the forefront of AI regulation in the US as the federal government has taken a more “hands-off” approach to regulating AI and algorithmic discrimination. This leaves a growing patchwork of state laws to govern the acceptable uses of AI. As state AI laws proliferate companies operating across state lines may opt to comply with the most stringent state laws uniformly to avoid confusing and disparate compliance practices. This means that laws like HB 2094 will likely set the bar for nationwide compliance practices for AI governance.