• Connecticut has enacted a comprehensive AI law that regulates the use and deployment of AI in consumer, employment, and government contexts.
• The new AI law will require employers to disclose the use of “automated employment-related decision technology” to employees and applicants when the technology output is making, or is a “substantial factor” in making, an employment-related decision concerning employees or applicants.
• Failure to comply with the notice requirements will be considered an unfair or deceptive trade practice, enforceable exclusively by the state attorney general.
• The law further prohibits employers from relying on AI tools as a defense against discrimination claims and will impose whistleblower protections for employees reporting AI-related safety concerns.

The signing of Substitute Senate Bill (SB) No. 5, Public Act No. 26-15, comes after the state legislature passed the amended legislation following a long back-and-forth during which Governor Lamont threatened to veto an earlier version of the bill in 2025. SB 5 provides a comprehensive regulatory framework for the deployment and use of AI technology across consumer, employment, and government sectors, imposes transparency, safety, and accountability requirements on developers and deployers of AI, and places restrictions on AI use.

Of specific relevance to employers, the law imposes a notice requirement when AI-powered tools are used in making employment-related decisions, clarifies that the use of AI...

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