With the 2025 Legislative Session approaching, MACo is profiling major issues, including artificial intelligence, that stand to gather significant attention.
Artificial Intelligence (AI) is rapidly transforming how societies function, from automating industries to reshaping how governments serve their constituents. However, as AI grows, so does the need for thoughtful regulation to ensure it benefits everyone without infringing on rights or creating unintended harms. Maryland took significant steps in 2024 to address AI through legislation, setting the stage for AI regulation to become an even more critical issue in the 2025 legislative session.
Maryland AI Legislation in 2024:
- Artificial Intelligence Governance Act (Chapter 496): Establishes regulations for state agency AI use, including requirements for data and system inventories and impact assessments for high-risk AI. New AI systems must comply with policies from the Department of Information Technology (DoIT) starting July 2025. Exempt entities must still adopt compatible policies.
- Maryland Online Data Privacy Act (MODPA): Introduces consumer protections, such as banning the sale of sensitive data and allowing consumers to control their data. This indirectly impacts AI by limiting access to training data.
- AI for Government Services: Legislative intent was set for DoIT to evaluate AI’s potential in developing a statewide virtual 3-1-1 portal for non-emergency services.
Local governments are increasingly adopting AI for a variety of purposes, such as improving public services, streamlining administrative tasks, and enhancing public safety. However, local governments face challenges similar to those of state agencies, including data privacy concerns, ethical use of AI, and accountability for automated decision-making.
The upcoming session is expected to address pressing issues such as the regulation of high-risk AI systems, data privacy, and the ethical deployment of AI in government and industry. With states like California and others introducing measures on AI transparency, algorithmic fairness, and consumer protections, the nationwide conversation on AI governance continues to intensify.
According to the 2025 Issue Papers:
Regulation of Artificial Intelligence by Other States Many states are currently studying how AI can be both utilized and regulated effectively. In 2024, a substantial number of states, Puerto Rico, and the Virgin Islands, took proactive steps to address AI-related issues through legislative and regulatory action. These initiatives generally fall into five primary categories: (1) government use of AI; (2) algorithmic discrimination; (3) automated employment decision-making; (4) AI bill of rights or human rights protections; and (5) deceptive audio or visual media (“deepfakes”).
Beyond these primary categories, other discrete regulatory functions often target specific industries and applications. For instance, regulations may govern the use of consumer data (similar to Maryland’s MODPA) or the deployment of facial recognition technology by both public and private entities. Most notably, California recently did not enact a proposed broad regulatory framework for AI but did enact legislation requiring the disclosure of certain information about how generative AI systems are developed.
The growing recognition of AI’s transformative potential and associated risks ensures that it will remain a priority for lawmakers in 2025.
