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Connecticut Signs Comprehensive AI Law Covering Employers, Developers, and Consumers

Governor Ned Lamont signed the legislation on May 29, 2026, making Connecticut the latest state to regulate AI across employment, frontier AI development, and consumer-facing platforms.

Connecticut Governor Ned Lamont signed Public Act 26-15, which addresses employer hiring tools, large AI developers, AI companions marketed to minors, and social media recommendation algorithms. It is one of the more sweeping state AI laws enacted to date.

 

What employers have to do

Starting October 1, 2026, employers filing WARN Act notices with Connecticut’s Labor Department must disclose whether the layoffs are related to AI or other technological change. 

Starting October 1, 2027, any employer using AI tools that play a “substantial factor” in hiring, promotion, discipline, or discharge decisions must provide written notice to affected employees and applicants before making a decision. The notice must name the AI tool, explain what data it will analyze, and provide the employer’s contact information. Violations are enforceable only by the state attorney general.

The law also amends Connecticut’s employment discrimination statute to make clear that the use of an AI tool is not a defense against a discrimination complaint.

 

What AI developers have to do

Large frontier developers (companies with over $500 million in annual revenue that train foundation models) must establish internal anonymous reporting processes for employees who believe the company poses a “specific and substantial danger to public health or safety due to a catastrophic risk.” Retaliation against those employees is prohibited. Violations carry civil penalties of up to $1,000 per violation. The deadline to have the process in place is January 1, 2027.

 

Consumer-facing requirements

AI companion operators (platforms that offer human-like AI chatbots marketed for emotional connection) must implement suicide and self-harm protocols, disclose to users that they are interacting with an AI, and restrict manipulative engagement tactics when users are minors. These sections take effect January 1, 2027.

Providers of generative AI systems with more than 1 million monthly users must embed provenance data in AI-generated audio, images, and video so consumers can verify whether content was AI-generated. That section takes effect October 1, 2026.

Social media platforms that use algorithmic recommendation systems face new restrictions on how they can personalize content feeds for users under 18, including a default one-hour daily limit on algorithmically curated content. That section takes effect January 1, 2028.

 

Where Connecticut fits

Connecticut is the latest state to ratify sweeping AI laws. Illinois recently passed comprehensive AI legislation, citing federal inaction, with more bills on the way. Colorado, California, Florida, Missouri, New York, and Washington, among others, have either already signed bills into law or are currently reviewing proposed legislation.

The pattern puts the White House in an awkward position. The Trump administration is pushing for a federal AI framework and signed an executive order in December 2025 directing the federal government to limit state and local AI regulation. No federal law has materialized yet, with the president recently rejecting an executive order to institute a federal review process for advanced “frontier” AI models before release. Until one does, states are writing their own rules.

Clayton Rifkind

Clayton Rifkind is the Founder and Senior Editor of AI Risk Today. He also advises on content development for esgtoday.com, a leading source of ESG investment news and research for institutional investors and corporate leaders. He has 20+ years experience in B2B technology marketing, leading strategy and execution of go-to-market plans across software, enterprise platforms, and mobile applications. He also founded two marketing consultancies, advising startups and Fortune 1000 companies, including Autodesk, Intel, and Microsoft. Clayton began his career in the San Francisco advertising scene, working with brands such as Hewlett-Packard, Intel, Microsoft, Symantec, and Wells Fargo.

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