By Mark Adams
Artificial intelligence continues to transform the workplace, particularly in recruiting, hiring, performance management, and workforce planning. As employers increasingly rely on technology to help make employment decisions, lawmakers are responding with new rules designed to promote transparency and reduce the risk of discrimination. Connecticut has now joined a growing list of states regulating workplace AI through the enactment of Public Act 26-15. While the Act addresses several AI-related topics, Human Resource professionals should focus on the provisions governing the use of automated employment-related decision technology in employment decisions.
Connecticut is not alone. States such as Colorado, Illinois, Maryland, and New York have already adopted laws regulating certain uses of artificial intelligence in employment. New York City’s Automated Employment Decision Tool law requires bias audits and candidate notifications. Illinois imposes notice requirements regarding AI-assisted video interviews. Maryland regulates the use of facial recognition technology in employment interviews. Colorado recently enacted a comprehensive AI governance law addressing high-risk AI systems, including those used in employment decisions. Connecticut’s approach differs from some of these laws, but it follows the same overall trend: employers remain responsible for how AI affects employment decisions and must be transparent about its use.
Beginning October 1, 2027, Connecticut employers using covered AI tools will face new disclosure requirements. The law applies to automated employment-related decision technology, broadly defined as technology that processes personal data and generates predictions, recommendations, classifications, rankings, scores, or other outputs that are a substantial factor in employment decisions. This may include applicant screening platforms, resume-ranking software, AI-assisted interview tools, promotion recommendation systems, employee evaluation technologies, and similar applications that materially influence decisions regarding hiring, promotion, discipline, discharge, training opportunities, or other significant terms and conditions of employment.
Under the new law, employers generally must provide plain-language notice when applicants or employees are interacting with covered AI technology. In addition, before making an employment decision that relies upon an AI-generated output as a substantial factor, employers must provide written notice explaining that the technology is being used, the purpose of the system, the type of employment decision involved, the trade name of the technology, the categories and sources of personal data being analyzed, and contact information for the employer.
The law also delivers an important reminder regarding discrimination risks. Connecticut’s employment discrimination statutes have been amended to expressly state that an employer cannot avoid liability simply because an employment decision was influenced by an AI system. If a technology tool produces discriminatory outcomes affecting protected groups, the employer may still be held responsible. At the same time, courts and the Connecticut Commission on Human Rights and Opportunities may consider evidence of anti-bias testing and other proactive efforts undertaken by employers to prevent discriminatory outcomes.
For HR professionals, the practical message is clear: AI does not eliminate employer accountability. Organizations should begin by identifying every AI-powered tool currently used throughout the employment lifecycle and determining whether those tools materially influence employment decisions. Employers should engage vendors to understand how their systems function, what data they use, whether bias testing has been performed, and what documentation is available to support compliance efforts. Human oversight should remain an essential component of any decision-making process.
HR leaders should also consider establishing an AI governance framework that includes vendor due diligence, periodic bias assessments, manager and recruiter training, documentation protocols, and updated applicant and employee notices. Policies addressing the appropriate use of AI in recruiting and employment decisions may also help demonstrate good-faith compliance efforts.
The bottom line is that Connecticut employers can continue to leverage AI technologies to improve efficiency and decision-making, but transparency, accountability, and nondiscrimination must remain at the center of those efforts. As more states continue to enact AI regulations, employers that proactively evaluate and govern their AI tools today will be better positioned to meet both current and future compliance obligations.
Editor’s Note: Because Public Act 26-15 provides a cure period for certain AI notice violations occurring through December 31, 2027, employers have a limited opportunity to correct issues before enforcement actions may proceed. That grace period should not be viewed as a reason to delay compliance planning.