On February 25, Connecticut Attorney General William Tong released a memorandum on the application of existing state and federal laws to AI use. The guidance detailed the OAG’s enforcement authority under anti-discrimination laws that prohibit algorithmic bias in contexts like lending, housing, employment, and insurance, citing state statutes and federal laws empowering state attorneys general.

The OAG discussed the Connecticut Data Privacy Act and other state statutes, which extend personal data rights and impose personal data processing and use restrictions on businesses. These include limitations on data gathering, clear and meaningful disclosure of AI usage, and heightened responsibilities when dealing with sensitive data, which cannot be processed using AI without consumer consent. The memo provided that sensitive data includes children’s data, precise geolocation, and information about a resident’s religion, race, ethnicity, sexual orientation, and citizenship status. It also noted that the state’s Safeguards Law requires those possessing another’s personal data to ensure misuse does not occur. In cases where inadvertent disclosures do occur, the memo emphasized that the state’s Breach Notification Law requires notices for the unauthorized acquisition for a broad array of personal data, including financial, health, government information, biometrics, and account log-ins.

The guidance also explained that the Connecticut Unfair Trade Practices Act provides a private right of action to those affected by deceptive trade practices and detailed the state’s investigative authority over AI usage in deceptive practices. Specifically, the OAG noted that violations could occur in instances where AI is used to misrepresent product qualities or certifications, apply predictive pricing during emergencies, create false reviews, or support deceptive AI-driven business opportunities, among others. Finally, the memo affirmed that the Connecticut Antitrust Act and federal competition laws apply equally to AI-facilitated anti-competitive conduct.