On February 20, 2025, the Virginia Legislature passed the High-Risk Artificial Intelligence Developers and Deployment Act (“Act”).
This law is a comprehensive bill focusing on accountability and transparency in AI systems. The law applies to developers and deployers of “high-risk” AI systems doing business in Virginia. An AI system is considered high risk if it is a consequential decision, if it is to do it autonomously or be a substantial factor. Under the law, a consequential decision means “a clause or decision that has an equally significant or equally significant impact on the consumer.” (2) Registration for education or educational opportunities. (3) Access to employment. (4) Financial or lending services. (5) Access to healthcare services. (6) Housing; (7) Insurance; (8) Marriage status status or (9) Legal services. The law excludes many activities from what is considered a high-risk AI system, such as whether the system is intended to perform narrow procedural tasks or improve the outcome of previously completed human activities.
This law includes requirements that vary depending on whether the target business is an AI system developer or deployer. The requirements generally aim to avoid algorithmic discrimination, ensure impact assessment, promote AI risk management frameworks, and ensure transparency and protection against adverse decisions.
The Virginia Attorney General has exclusive authority to enforce the law. Violation of the law is subject to civil penalties of up to $1,000 and reasonable attorney fees, costs and costs. You can increase your penalty by up to $10,000 for intentional violations. In particular, the law states that each violation is a separate violation. The law also offers a 45-day treatment period.
Virginia Governor Glenn Youngkin must sign, reject or return the bill by amendment until March 24, 2025. If enacted, the law will come into effect on July 1, 2026.
