Introduced bills come despite a federal edict declaring states cannot enact AI regulations.

The Alabama Legislature introduced and advanced two separate AI-related bills, less than eight days apart, both moving forward after the effective date of a White House policy urging states not to regulate AI.

Senate Bill 63 (SB63) was introduced by State Senator Arthur Orr (R) and referred to the Senate Committee on Healthcare. Under the bill text, any healthcare insurer using AI, an algorithm, or other software tools in utilization review must base determinations on an enrollee’s full medical history and clinical circumstances, certify annually to the Alabama Department of Insurance that its AI tools meet specified criteria, and disclose to enrollees when AI is used in review processes. The bill would also require that denials, reductions, or deferrals be reviewed or made only by a licensed physician or other qualified health care professional. Insurers would have to make available statistics on AI-related denials and ensure that patient data is not used beyond intended purposes consistent with the Health Insurance Portability and Accountability Act (HIPAA). SB63 remains pending in committee.

A separate measure, House Bill 324 (HB324), was introduced in the House just eight days later by State Representative Parker Moore (R). HB324 would require AI chatbot deployers to implement “reasonable age verification processes” for users and define covered entities as those that own or operate chatbots. The bill text defines terms such as “AI chatbot,” “minor,” and “therapeutic chatbot,” establishes requirements for age-verified user accounts, and mandates that covered entities ensure chatbots do not make certain human-like features available to minors. It also outlines conditions under which therapeutic chatbots could be made available to minors, including assessment and prescription by licensed mental health professionals, and allows civil actions for violations. HB324 is pending further action in the House.