The Vermont State Legislature has introduced House Bill 341, aimed at regulating high-risk artificial intelligence systems within the state. Introduced on February 25, 2025, the bill seeks to establish a framework for accountability and oversight of AI technologies that pose significant risks to consumers and the public.

The primary provisions of House Bill 341 stipulate that it applies to entities that are not classified as small businesses by the U.S. Small Business Administration. It targets those that conduct business, promote, or advertise in Vermont, as well as those involved in the development, distribution, or deployment of high-risk AI systems. This regulatory approach is designed to ensure that larger companies adhere to specific obligations regarding the safety and ethical use of AI technologies.

A notable aspect of the bill is its emphasis on maintaining existing legal liabilities. Section 2 clarifies that compliance with the new regulations will not absolve entities from any pre-existing legal responsibilities, thereby preserving avenues for legal recourse for consumers affected by AI-related issues.

The introduction of House Bill 341 has sparked discussions among lawmakers and stakeholders regarding the balance between innovation and consumer protection. Proponents argue that the bill is essential for safeguarding residents from potential harms associated with advanced AI systems, while critics express concerns about the potential stifling of technological advancement and the burden of compliance on businesses.

As the bill progresses through the legislative process, its implications could extend beyond Vermont, potentially influencing how other states approach AI regulation. The bill is set to take effect on July 1, 2025, if passed, marking a significant step in the state's efforts to address the challenges posed by rapidly evolving technology. The outcome of this legislation could shape the future landscape of AI deployment and accountability in Vermont and beyond.