Protecting Innovation: Why CTA Opposes Connecticut’s SB 2 on AI Regulation

Introduction: 

As the leading voice of the tech industry in North America, the Consumer Technology Association (CTA) stands at the forefront of innovation. Our members, ranging from startups to global giants, are the driving force behind the technological advancements that shape our world. However, we find ourselves at odds with Proposed SB 2, titled "An Act Concerning Artificial Intelligence", currently under consideration by the Connecticut legislature. While recognizing the importance of regulating artificial intelligence (AI) responsibly, we believe that SB 2, in its current form, poses significant challenges that could stifle innovation and hinder economic growth, not only in Connecticut but also nationally and beyond.

Concerns and Opposition: 

• Extraterritorial Reach: SB 2 would impose onerous obligations on developers and deployers of AI, extending far beyond Connecticut's borders. This could result in a patchwork of compliance requirements, stifling innovation and hindering market growth.
• Innovation Impediment: Heavy-handed regulation of AI, especially at this early stage of development, risks stifling innovation and deterring investment. Small and medium-sized enterprises (SMEs) would be disproportionately affected, further limiting competition and innovation in the market.
• Problematic Provisions: SB 2 contains several provisions that raise significant concerns:
• Mandating disclosure of information, such as the management of algorithmic discrimination risks, could lead to misinterpretation and expose developers to unwarranted liability.
• The requirement for developers to disclose extensive information to deployers of high-risk AI systems may be impractical and could compromise confidential business information.
• The vague standard of care and the duty to eliminate "known or reasonably foreseeable" risks are ambiguous and may not be achievable given the rapid pace of technology.
• The broad disclosure requirements risk causing confusion among consumers and may not effectively address actual risks.

Conclusion: 

CTA firmly believes in the responsible development and deployment of AI technology. However, SB 2, with its extraterritorial reach and problematic provisions, poses significant risks to innovation and economic growth. We respectfully oppose Senate Bill 2 and urge policymakers to consider alternative approaches that foster innovation while addressing legitimate concerns about AI regulation.

By advocating for a balanced regulatory framework, we can ensure that AI continues to drive progress, promote economic prosperity, and benefit society as a whole. Join us in protecting innovation and shaping the future of AI regulation for the betterment of all.

If you live in the state of Connecticut, please contact your state Senators and Representatives and urge them to oppose SB 2 today!