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[]
[]
[null,"Prepared By:","Contributors:"]
[null,"Faegre Drinker Biddle & Reath LLP","H. Joy Sharp"]
[]
[]
[]
["AI Legislative Guide"]
[]
["Report Generated: 11/19/2025"]
[]
["View your report results on next tab"]

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["Question","USA, Vermont"]
["Overview"]
["Has specific legislation, final regulations or other formal regulatory guidance addressing the use of AI in your jurisdiction been implemented (vs reliance on existing legislation around IP, cyber, data privacy, etc.)?\n\n*Please note that EU rules are applicable in all EU Member States*","Yes. \n"]
["Please provide a short summary of the legislation/regulations/guidance and explain how legislators aim to strike the balance between innovation and regulation.\n\n*Please note that EU rules are applicable in all EU Member States*"," The Vermont Department of Financial Regulation has adopted the National Association of Insurance Commissioners model bulletin on the use of artificial intelligence by insurers. At a high level, the bulletin requires insurers that use AI systems to implement a governance and risk management framework and encourages them to test for unfair discrimination.   \n As of June 2025, Vermont has not implemented other specific legislation, final regulations, or formal regulatory guidance explicitly addressing the use of artificial intelligence ( AI ). The state primarily relies on existing legislation surrounding intellectual property, cybersecurity, data privacy, and consumer protection to govern AI-related concerns outside the context of governmental use. \n However, Vermont has demonstrated interest in technological governance, including AI . For example: \n \n Vermont AI Task Force: In 2018, Vermont established an Artificial Intelligence Task Force to study the growth of AI and its impacts on society, economy, and government. The task force issued a report in 2020, recommending strategies for responsible AI development and regulatory frameworks. Updated two years later, the 2023 Vermont AI Guidance expanded the ethical principles from the 2020 AI Task Force Report to apply beyond governmental use, encouraging responsible AI practices across both public and private sectors. Key Elements include:\n \n Ethical AI Standards: Promotes transparency, accountability, fairness, and safeguards against bias in AI systems. \n Private Sector Application: Advises businesses to align AI practices with the state's ethical framework, particularly in critical areas like healthcare, finance, and hiring. \n Data Privacy Compliance: Reinforces adherence to Vermont’s existing privacy laws, such as the Data Broker Law , when AI systems process consumer data. \n AI in Decision-Making: Stresses the need for heightened scrutiny in AI -driven decisions that significantly impact people's lives, ensuring fairness and non-discrimination. \n Public Awareness: Encourages education and public understanding of AI technologies and their societal impact. \n \n \n Data Privacy and Consumer Protection: Vermont has strong data privacy laws, including its Data Broker Law , which regulates entities collecting and selling consumer data. While not AI -specific, this law significantly, if indirectly, impacts AI systems utilizing consumer data by imposing strict requirements on entities that collect, store, and sell personal data:\n \n Transparency Requirements: Data brokers must disclose information about the data they collect, which increases transparency for AI systems relying on such data for training or decision-making. \n Consumer Protection: The law mandates safeguards against identity theft and requires companies to allow individuals to opt out of data collection. This limits the availability of data that AI systems can use, encouraging compliance with privacy standards. \n Data Accuracy: AI systems that rely on brokered data may need to account for the law’s focus on accurate and ethical data handling, reducing risks of bias or errors in AI decision-making. \n Accountability: By regulating data brokers, the law indirectly ensures that AI developers and users remain accountable for how consumer data is sourced and utilized. \n \n \n \n In essence, the Data Broker Law establishes a framework of consumer data rights, which AI systems must respect, promoting privacy and ethical use of personal information. "]
["Which agency regulates the use of AI in your jurisdiction?\n\n*Please note that EU rules are applicable in all EU Member States*"," In Vermont, there is no single agency formally tasked with AI regulation. Instead, the following entities collectively address AI governance based on existing laws and the 2023 Vermont AI Guidance : \n \n Vermont Attorney General’s Office: Oversees consumer protection, data privacy (e.g., enforcement of the Data Broker Law ), and compliance with laws that indirectly impact AI systems, such as those related to cybersecurity and discrimination. \n Department of Financial Regulation (DFR): Regulates AI applications in industries like insurance, banking, and financial services to ensure compliance with state laws on transparency and fairness in decision-making. \n Agency of Digital Services (ADS): Provides guidance on the use of AI in government operations and ensures ethical standards in the deployment of AI technologies by state agencies.  \n "]