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10 HARTFORDBUSINESS.COM | JUNE 1, 2026 On Notice CT businesses face AI compliance deadlines under sweeping new law Anderson said he is urging clients to inventory their AI platforms, policies and procedures quickly, not only to ensure compliance, but to make sure they can prove it. "A lot of compliance is not just having a good product, but having a good product that you can document is good in writing," he said. That could include revamped employee handbooks and rewritten vendor policies, among other documentation. The fact that both employers and the AI developers they rely on are held liable under the law could become a source of future controversy, partic- ularly if small businesses lack the technical knowledge or resources to hold vendors accountable for the AI models they use. Compliance strategies Not all of these processes and concepts will be entirely new to Connecticut businesses, many of which have already had to comply with provisions of the state's Data Privacy Act. In effect, the new law extends similar protections to employees in addition to consumers. Harris Beach Murtha's Plunkett By Harriet Jones hjones@hartfordbusiness.com C onnecticut businesses that use artificial intelligence in hiring, customer interactions and other operations face new compliance requirements under a sweeping state law approved in the final days of the legislative session. After two failed attempts in prior years, lawmakers this session passed an AI bill with the approval of Gov. Ned Lamont. For the growing number of businesses in the state that use — or rely on — the technology, the first compliance deadline arrives quickly, with initial provisions taking effect Oct. 1. The good news, according to legal experts who specialize in data privacy and technology regulation, is that Connecticut narrowed the scope of its legislation considerably from earlier versions of the bill. "I think they did a really good job," said Tim Plunkett, senior counsel at Harris Beach Murtha and a member of the law firm's artificial intelligence team. "It's very well focused on specific issues in a way that balanced innovation and safety." Sherwin Yoder, a technology attorney at Carmody Torrance Sandak & Hennessey in New Haven, said the playing field had shifted considerably from previous legislative sessions. This time, the debate over the bill was less about whether regulation should exist at all, and more about the technical provisions. "The truth is AI is here, those solutions are here, businesses are using them," he said. "And it does make sense to try to come up with a way to address all the stakeholder concerns and not leave individuals out of the picture." Plunkett compares the legisla- tion favorably with laws passed in California, New York and Colorado, all of which have more complex and comprehensive regulatory requirements. Still, Connecticut's law is not entirely straightforward. The 71-page omnibus Connecticut Artificial Intelligence Responsibility and Transparency Act contains multiple key provisions. One that many employers may focus on addresses the use of AI in employ- ment decision technology. It places responsibility on both AI developers and the companies that deploy the tools to disclose their use and purpose in hiring, promotion, discipline and termination decisions. The disclosure requirements are fairly detailed. Employers using the technology must tell applicants or employees when AI is being used in a hiring or employment decision, explain the purpose of the tool, disclose what categories of personal data it analyzes and where that information comes from, among other requirements. The law also amends the state's anti-discrimination statutes to make clear that automated deci- sion-making is not a defense to a discrimination claim. "If you're using AI and it's having a discriminatory impact then it's you, you are the employer, you are the one making the choice," said Russell Anderson, a privacy and data security expert at law firm Pullman & Comley. Image created by ChatGPT Tim Plunkett Russell Anderson Sherwin Yoder