State-Level AI Regulations Mandate Employer Transparency in Data Processing
New state-level regulations in Connecticut and Colorado are increasingly linking artificial intelligence (AI) tools with existing comprehensive privacy statutes, particularly in employment settings. These laws define AI as technology that processes personal information and uses computation to generate output, thereby requiring employers to provide detailed notices when using AI for decision-making processes. Specifically, the Connecticut law, which begins to take effect later this year, mandates that employers using 'automated employment-related decision technology' (AEDT) must notify applicants and employees. This notice must include the purpose and nature of the employment decision, the trade name of the technology, and the categories and sources of personal data being used. While New York City's regulations have historically focused on bias audits, the recent shift in Connecticut and Colorado emphasizes transparency and notice, moving away from prioritizing bias analyses. Colorado's updated law also inc... 
