Connecticut plans artificial intelligence regulatory sandbox program by 2025

On April 9, 2025, the Connecticut State Legislature introduced Senate Bill 1249, a significant legislative proposal aimed at fostering innovation in artificial intelligence (AI) technologies within the state. The bill seeks to establish an artificial intelligence regulatory sandbox program, which would allow businesses to test innovative AI products and services under a more flexible regulatory framework.

The primary purpose of Senate Bill 1249 is to create a competitive business environment for AI development in Connecticut, positioning the state as a leader in the burgeoning tech sector. The bill mandates that the Commissioner of Economic and Community Development, in collaboration with various state commissioners—including those overseeing banking, health strategy, public health, and insurance—develop a comprehensive plan for this sandbox program. This plan is expected to be submitted to the Governor and relevant legislative committees by January 1, 2026.

Key provisions of the bill include a definition of "artificial intelligence system" and "generative artificial intelligence system," which outline the scope of technologies that would be eligible for the sandbox program. The bill aims to reduce the regulatory burden on companies testing these technologies, allowing them to operate under less stringent licensure and legal requirements for a limited time.

The introduction of Senate Bill 1249 has sparked notable discussions among lawmakers and industry stakeholders. Proponents argue that the bill will stimulate economic growth and attract tech talent to Connecticut, while critics express concerns about potential risks associated with unregulated AI technologies, including ethical implications and public safety. Amendments to the bill may be proposed as debates continue, particularly regarding the balance between innovation and regulation.

The implications of this bill extend beyond the immediate tech landscape. Economically, it could enhance Connecticut's attractiveness as a hub for AI startups and established companies alike, potentially leading to job creation and increased investment in the state. Socially, the bill raises questions about the ethical use of AI and the responsibilities of companies developing these technologies.

As the legislative process unfolds, the future of Senate Bill 1249 will depend on ongoing discussions and potential amendments aimed at addressing concerns while promoting innovation. The outcome of this bill could set a precedent for how states regulate emerging technologies, making it a pivotal moment for Connecticut's legislative agenda.