Hartford Business Journal

HARTFORDBUSINESS.COM | JUNE 1, 2026 11 Beyond the Traditional Sale J U N E 4 , 2 0 2 6 | 1 : 0 0 P M E S T | V I R T U A L E V E N T Selling to private equity or a strategic buyer isn't the only option. The Walker Group is hosting a live panel with owners and leaders who chose alternative ownership models like Employee Ownership Trusts (EOTs) and Perpetual Purpose Trusts (PPTs). Hear why they made the decision, what the process looked like, and how these models shaped company culture, governance, and long-term independence. Jessica Rich co-CEO The Walker Group Kevin Clegg CEO Clegg Auto Miren Oca Founder & CEO Ocaquatics Swim School Brad Herrmann Founder & CEO Text-Em-All SCAN TO REGISTER said that because of AI's pervasive role across industries, companies' compliance strategies should begin with communication. "AI is really a team sport," he said. "It covers a massive range of people. When you're creating your policies you want to be able to take in a really diverse group of opinions." One notable difference from some other states is that Connecticut's law generally does not allow individuals to sue directly over alleged violations. Instead, enforcement will largely be handled by the state attorney general under the Connecticut Unfair Trade Practices Act. "They gave the attorney general a decent amount of control here, which I think brings clarity to businesses," Plunkett said. "It gives you one central- ized place to go to." There is one potential exception. The bill includes social media protec- tions for minors that take effect in January 2027. Under those provisions, platforms must obtain parental consent before exposing children to algorithmic feeds, enforce a one-hour daily limit and block sensitive content. The legislation does not clearly state whether individuals could sue under this section, though experts said it is more likely to affect large technology companies and Connecticut families than in-state businesses. Other consumer-focused provisions regulate AI chatbots intended as "companions," requiring companies to disclose that users are interacting with AI and implement suicide and self- harm detection protocols. Large generative AI models also will be required to include identifiers, such as digital watermarks, in content they create or materially alter, so consumers know it was generated using AI. Workforce development The legislation also seeks to preserve innovation by creating a regulatory "sandbox." The state Department of Economic and Commu- nity Development is tasked with developing a program that would allow companies to test new AI products under reduced regulatory require- ments, with the goal of giving busi- nesses a way to try out new ideas. The law also aims to support educa- tion and workforce development in the field, requiring a new K-12 curriculum focused on safe and responsible AI use while expanding access to AI skills training. That effort includes the creation of a Connecticut AI Academy, which will offer training resources for workers, educators, nonprofits and small and midsize businesses. Observers said that kind of upskilling could give the state a competitive advantage. In passing the bill, Connecticut joins a relatively small group of states that have adopted broader AI regu- latory frameworks, though experts expect additional legislation as the technology evolves and regulatory gaps emerge. "I think you're going to see these more atomized bills addressing specific harms over the next, say two, three, four years, to address these higher risk issues," Anderson said. However, the evolving legal land- scape could put the state in the firing line of the federal government. For example, Elon Musk's AI company has challenged Colorado's AI law in federal court, and the U.S. Depart- ment of Justice has intervened to pause enforcement of that state's regulatory framework. "If I'm running a state right now, I'm keeping an eye on what's happening within the federal agencies very closely," Plunkett said. For the short term, however, Connecticut businesses are likely to focus on the immediate compliance burden, made more complicated by changes to the state's Data Privacy Act that also take effect July 1, including new restrictions on how certain businesses use consumer data, limits on the sale of precise geolocation data, and added disclosure require- ments around some automated pricing practices. That creates two significant dead- lines within three months. "It is a little head-spinning right now," said Carmody's Yoder, who advocates a practical approach. "I try to help clients focus on what's my most signif- icant two or three risks. Let's tighten our controls around that and make sure we're addressing those compli- ance risks, and being proactive." AI LAW: KEY TAKEAWAYS Employment AI: Employers using AI in hiring must disclose certain uses beginning Oct.1 Discrimination: AI is not a defense against workplace bias claims Generative AI: Some providers must identify AI-generated content Innovation: State will study an AI regulatory sandbox Workforce: AI Academy will provide training and small business support Enforcement: Attorney general oversight; limited private lawsuits

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