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Home»AI Legislation»Virginia’s AI Act targets “high-risk” AI systems
AI Legislation

Virginia’s AI Act targets “high-risk” AI systems

By March 5, 2025No Comments4 Mins Read
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According to a review of national law, Virginia could become the second state to enact artificial intelligence (AI) regulations targeting post-Colorado high-risk AI systems.

The Virginia Senate recently passed the High-Risk Artificial Intelligence Developers and Deployers Act. This applies to AI systems that make decisions or “major impact.”

The law affects businesses that use these AI systems, including when hiring people. If the law is signed by Governor Glenn Youngkin, it will take effect on July 1, 2026.

However, Virginia’s AI regulations differ from the key aspects of Colorado. AI must form the “primary foundation” of decisions that, according to the publication, trigger the anti-discrimination clause of the law.

“This threshold requirement creates a higher standard for establishing coverage than Colorado’s “substantial factor” standard,” the author writes.

The law focuses on protecting consumers from algorithmic discrimination in consequential decisions such as those related to lending, housing, education, healthcare and employment.

However, even if it doesn’t mean that users of AI tools discriminate against consumers, using only the tools means they are responsible.

Additionally, developers who use the generated AI to create audio, video, or images should ensure that the content is clearly marked.

Deployers should also notify consumers when AI is being used in the consequential decision, providing the opportunity to modify the data and decide on appeal.

However, there are 19 types of technology exempted from this law. These include anti-food technology without facial recognition, cybersecurity tools, anti-malware and anti-virus technologies.

Fines for unintended violations will cost up to $1,000 per instance plus attorney fees and other charges. Any intentional violations are fined up to $10,000 per instance. Each violation is counted individually, and if many people are affected, penalties can surge quickly.

See: AI Action Summit: Global AI Regulations Trend towards Growth

Regulating the role of AI in layoffs in New York

The increased use of artificial intelligence has led to fear among employees that their work would be replaced by automation.

New York Governor Kathy Hochul recently announced that he hopes employers will disclose whether the AI tools played a role in mass layoffs or office closures when submitting notifications to the National Worker Coordination and Retraining Notice (WARN) Act.

According to the Human Resources Management Association (SHRM), this is the first time the state has created this requirement.

Sean Matthew Clark, a lawyer for New York City, told SHRM that the requirement is “another content obligation that needs to be added to many other complex notification requirements already in New York.”

The New York warning requires employers with at least 50 employees to issue notifications if they plan to lay off full-time employees who make up at least one-third of their full-time employees in a single location, or a total of 250 full-time employees. The federal warning calls for employers with more than 100 workers who have fired at least 50 workers in a single location.

The proposal is part of a suite of AI initiatives outlined by Hochul.

New York will also provide AI training to small businesses, launch public-private partnerships with high-tech companies, invest $20 million in New York AI startups, and provide free training and placement for underserved AI jobs through a program called “AI Prep.”

Read more: AI Regulations: Texas Sweep AI Bill and Vatican Policy

Estonia brings AI tools to all schools

The Estonian government has announced a nationwide AI education program that embeds technology throughout the education system.

Called AI Leap 2025, the program offers free access to world-leading AI applications and the right training for students and teachers to effectively use in their learning. It will come into effect on September 1st.

“Artificial intelligence has changed the world forever. Like all sectors, the education system must adapt to these changes,” Estonian President Ara Karis said in a statement. “It will help Estonia become the smartest country in the world.”

The program will include high school students initially in grades 10 to 11 and 3,000 teachers. The plan is to expand the program to vocational schools and freshmen in 2026, adding another 38,000 students and 2,000 teachers to the pool.

Human negotiations have begun with Openai, and plans are being made to get other AI companies involved.

See more details: AI, AI Regulation, Artificial Intelligence, Education, Estonia, Layoffs, Law, New York, News, PYMNTS News, Regulation, Virginia

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