Artificial intelligence is rapidly becoming embedded in the modern workplace. Employers increasingly use AI-powered tools to recruit applicants, screen resumes, evaluate candidates, assess employee performance, forecast staffing needs, and support personnel decisions.
As the use of this technology expands, lawmakers have become increasingly focused on ensuring that AI tools do not create unfair or unlawful employment outcomes.
Connecticut is the latest state to enact legislation addressing the use of AI. The Connecticut Artificial Intelligence Responsibility and Transparency Act establishes a framework governing the development and use of certain AI tools and directly affects employers who use automated tools in making employment-related decisions.
Most provisions of the law will take effect on October 1 of this year. With limited exceptions, the notification requirements (described below) will not take effect until October 1, 2027.
The Act applies to all automated employment-related decision technology. “AEDT” is any technology that processes personal data and uses computation to generate an output that is “a substantial factor used to make or materially influence an employment-related decision.”
Under the law, a “substantial factor” is any factor that “meaningfully alters the outcome of an employment-related decision concerning an individual” in Connecticut.
An “employment-related decision” is a decision to recruit, hire, promote, discipline...
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