Growing up in Litchfield, Connecticut, I witnessed the innovative spirit of the state. My father, an early tech adopter, cultivated an interest in innovative technology, which translated into his investments in a small manufacturing facility. As a result, I understand the importance of small businesses like his for communities. That's why I am concerned about the potential impact of proposed legislation on artificial intelligence (AI). AI is one of the most transformative technologies today, with numerous businesses utilizing it to revolutionize various sectors. In Connecticut alone, there were nearly 9, 000 AI-focused job opportunities in 2022. However, effective regulation is crucial for harnessing the potential of AI. Unfortunately, Senate Bill 2 (SB 2) in Connecticut, while well-intentioned, takes a localized approach to a national policy issue, risking hampering innovation and hindering economic growth not only in Connecticut but also beyond. SB 2's disclosure requirements for high-risk AI systems may jeopardize the protection of confidential business information.

Additionally, the vague language relating to the elimination of "known or reasonably foreseeable" risks creates uncertainty, particularly in a rapidly evolving technology field. This legislation may leave developers guessing, ultimately subjecting Connecticut entrepreneurs to costly lawsuits if deemed to be non-compliant by the Attorney General. Moreover, state-level AI regulation would result in conflicting rules for businesses operating across state lines, creating compliance burdens, especially for small businesses and startups with limited resources. In order to foster AI innovation in Connecticut, it is crucial to remove obstacles rather than add to them. While regulation is necessary, it should be implemented at the federal level to provide consistent guidelines and standards for businesses across the United States. Efforts to establish federal AI legislation are already underway, with recent forums involving industry and government leaders addressing the need for action and clarity in data collection, usage, and sharing. Encouraging Connecticut's representatives in Washington to support federal AI regulation should be a priority to support startups and small businesses. AI regulation should strike a balance between fostering innovation and protecting consumers. Proposed legislation like SB 2 may hinder small businesses' ability to innovate in AI, ultimately depriving Americans of the transformative benefits AI offers. Instead of pursuing SB 2, Connecticut legislators should advocate for federal-level AI regulation to position the state as an economic and innovation hub, benefiting startups and small businesses. Michael Petricone serves as Senior Vice President of Government and Regulatory Affairs for the Consumer Technology Association.