Connecticut has enacted one of the country’s broadest employment AI transparency laws, further signaling that states are shifting their attention toward how technology materially influences employment decisions and whether employers can explain and defend those systems under scrutiny.
The newly passed Connecticut Artificial Intelligence Responsibility and Transparency Act, Senate Bill 5, creates a wide-ranging framework addressing employment AI, generative AI, AI governance, workforce development, and related regulatory issues.
For employers, however, the provisions governing “automated employment-related decision technology” will likely have the greatest practical impact.
The law reflects a regulatory shift emerging across the United States. Regulators appear focused less on whether employers use AI in some abstract sense and more on whether technology materially shapes consequential employment decisions, what employers disclose about those systems, and whether organizations can defend how those systems operate.
Connecticut defines “automated employment-related decision technology” broadly. The law covers technology that processes personal data and uses computation to generate outputs such as predictions, recommendations, rankings, classifications, or scores that are a “substantial factor” in making or materially influencing employment-related decisions.
The law defines “substantial factor” as something that “meaningfully alters the...
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