Massachusetts and AI and how to Stay Compliant with Data Privacy and Consumer Protection Laws
As artificial intelligence technologies continue to expand, businesses operating in Massachusetts must stay vigilant about complying with the state’s data privacy and consumer protection laws. On April 16, 2024, Massachusetts Attorney General Andrea Joy Campbell issued guidance that outlines the intersection of the Commonwealth’s laws with AI systems. The guidance focuses on data privacy, consumer protection, and anti-discrimination laws, all of which impact the use and development of AI.
Massachusetts is known for its robust consumer protection laws, and businesses using AI must comply with the Standards for the Protection of Personal Information of Residents of the Commonwealth, which are part of Chapter 93H of the Massachusetts Consumer Protection Act. These standards outline minimum security requirements for businesses that handle personal information, including AI developers and users. AI systems must ensure that any personal data processed complies with these security standards, and businesses must also adhere to the breach notification requirements outlined in the law.
The Massachusetts Consumer Protection Act (Chapter 93A) also applies to AI, specifically addressing unfair and deceptive practices. Businesses must avoid false advertising related to AI systems, such as making exaggerated claims about their capabilities or performance. AI tools that are defective or fail to meet advertised standards may also be considered in violation of the law. Ensuring that marketing materials accurately reflect the abilities of AI systems is critical to maintaining compliance.
Massachusetts takes discrimination seriously, and AI systems must comply with the state’s anti-discrimination laws. The use of AI in decision-making processes that impact individuals based on protected characteristics, such as race, gender, or disability, must be carefully scrutinized to prevent any discriminatory outcomes. This includes AI applications in employment, housing, lending, and more.
Compliance Recommendation.
To ensure compliance with Massachusetts’ regulations, businesses should:
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Review AI data security practices to ensure they meet Massachusetts’ standards for safeguarding personal information.
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Be transparent and accurate in marketing AI systems, avoiding any false or misleading claims about their capabilities.
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Ensure that AI tools do not discriminate against individuals based on legally protected characteristics.
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Be proactive about monitoring AI systems to ensure they comply with consumer protection and anti-discrimination laws.
By being in compliance, businesses can effectively navigate the regulatory landscape in Massachusetts and use AI responsibly.
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This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.