This is an overview of HB 2094. By definition, the summary must exclude details. Click here to view a full copy of the bill on the Virginia Legislative Information website.
On February 20, 2025, the Virginia Legislature passed HB 2094. The bill is currently awaiting signing by Governor Youngkin. When that becomes law, Virginia will become the second state after Colorado to enact laws that address algorithm identification, but the scope of the law will be narrower than that of Colorado.
The Act applies only to high-risk artificial intelligence systems defined as “the resultant decision “to make autonomously or be a substantial factor.” For legal purposes, artificial intelligence systems are “a machine learning-based system, for explicit or implicit purposes, that receives a way of generating output such as content, decisions, predictions, recommendations, etc. that can affect a physical or virtual environment.”
Only developers and deployment of high-risk artificial intelligence systems involved in the consequential decision-making are subject to the law. The resulting decision is either “decision that it has a legal or equally significant effect on provisions or rejections to consumers.”
Parole, probation, pardon or other release from incarceration or court supervision. Education registration or educational opportunities. Access to employment; Finance or lending services. Access to healthcare services. Housing; Insurance; Spouse; or legal services.
The Act requires the deployment of AI developers and high-risk AI systems to conduct risk assessments and document intended use and restrictions. Enterprises should also provide clear disclosures about AI systems’ performance, limitations and potential biases, and provide deployers with detailed documentation explaining the assessment methods used to test system performance and procedures taken to mitigate known risks.
An AI system or service is not a “high-risk artificial intelligence system” if it is intended to:
Perform narrow procedural tasks, improve the outcomes of previously completed human activities, detect decision patterns or deviations from existing decision patterns, or perform preparatory tasks for assessments related to the consequential decision.
Additionally, many technologies have been specifically excluded from the law, including:
Anti-Flad Technology that does not use facial recognition technology. An artificial intelligence-enabled video game. Autonomous vehicle technology. Cybersecurity technology. Database; Data Storage. Firewall technology. Networking; Spam and Robocall Filtering. Technology that communicates with natural language consumers with the aim of providing information to users, creating referrals and recommendations, and answering questions (subject to acceptable usage policies that prohibit the generation of discriminatory or illegal content).
During the discussion about the bill, many entities expressed serious concern that they could limit limiting the use of AI. Section 59.1-610 lists the activities that are exempt. It states:
“A. Nothing in this chapter is interpreted as limiting the capabilities of a developer.
(i) comply with federal, state, or local government ordinances or regulations; (ii) Follow civil, criminal, or regulatory investigations… (iii) Working with law enforcement agencies…; (iv) Investigation… defending legal claims…; (v) Provide products or services specifically requested by the consumer. (viii)…protects the interests essential to the life or physical safety of a consumer or other individual. (ix) prevent, detect, protect or respond to security incidents, identity theft, fraud, harassment, or malicious or deceptive activities; …”
Similarly, certain industries declare that the use of AI by these entities is already regulated by other federal and state government agencies, and therefore certain industries are “deemed” to meet the requirements of this new law. Specifically, subsection G states:
“The obligations placed on a developer or deployer in this chapter shall be deemed to be satisfied with a bank, out-of-state bank, credit union, federal credit union, mortgage lender, out-of-state credit union, savings institution, or affiliate, subsidiary, or such banks, credit union, credit union, savings institution, or affiliate, subsidiary, or such banks, credit union, credit union, savings institution, savings institution, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subsidy, subs
If signed by the governor, the Act will be led by the Act on July 1, 2026. The Virginia Attorney General’s Office has exclusive authority to enforce the provisions of the law.
