AI Regulations: Virginia’s AI Act Targets ‘High Risk’ AI Systems

Virginia could be the second U.S. state to enact artificial intelligence (AI) regulations targeting high risk AI systems, after Colorado, according to the National Law Review.

The Virginia State Senate recently passed the High-Risk Artificial Intelligence Developer and Deployer Act, which applies to AI systems that autonomously make decisions, or “significantly influence” them.

The legislation will affect companies that use these AI systems, including when hiring people. If the legislation is signed into law by Gov. Glenn Youngkin, it will take effect on July 1, 2026.

But Virginia’s AI regulations differ from Colorado’s in one key aspect: AI must constitute the “principal basis” for a decision to trigger anti-discrimination provisions of the law, according to the publication.

“This threshold requirement creates a higher bar for establishing coverage than Colorado’s ‘substantial factor’ standard,” the authors wrote.

The legislation focuses on safeguarding consumers from algorithmic discrimination in consequential decisions like those related to lending, housing, education, healthcare and employment.

However, even if the user of the AI tool did not mean to discriminate against consumers, the use of the tool alone means they are culpable.

Moreover, developers that use generative AI to create audio, video or images must make sure the content is clearly marked.

Deployers must inform consumers as well when AI is used in consequential decisions and provide opportunities to correct data or appeal decisions.

However, there are 19 types of technologies exempt from this act. These include anti-fraud technology without facial recognition, cybersecurity tools, anti-malware and anti-virus technologies.

Fines for unintentional violations go up to $1,000 per instance plus attorney’s fees and other costs. Willful violations carry a fine of up to $10,000 per instance. Each violation is counted separately, and penalties can skyrocket quickly if many people are affected.

See also: AI Action Summit: Global AI Regulations Tilting Toward Growth

Regulating AI’s Role in Layoffs in New York

The increased use of artificial intelligence has led to fear among employees that their jobs would be replaced by automation.

New York Gov. Kathy Hochul recently announced that she wants employers to disclose whether AI tools played a role in mass layoffs or office closures as they file their notices with the state Worker Adjustment and Retraining Notification (WARN) Act.

This is the first time a state has made this requirement, according to the Society for Human Resource Management (SHRM).

Shawn Matthew Clark, a lawyer at Littler in New York City, told SHRM that this requirement is “one more content obligation that will need to be added to the many other complex notice requirements that already exist in New York WARN.”

New York’s WARN requires that employers with at least 50 employees issue a notice if they plan to lay off at least 25 full-time employees that account for at least a third of the workforce at a single location, or a total of 250 full-time employees. Federal WARN requires it of employers with 100 or more workers that are laying off at least 50 workers at a single location.

The proposal is part of a suite of AI initiatives Hochul has outlined.

New York will also provide AI training to small businesses, launch a public-private partnership with tech companies to invest $20 million into New York AI startups, and offer free training and placement of disadvantaged college students into AI jobs through a program called “AI Prep.”

Read more: AI Regulations: Texas’ Sweeping AI Bill and the Vatican’s Policy

Estonia to Bring AI Tools to All Schools

The government of Estonia has unveiled a national AI education program that will embed the technology throughout its educational system.

Called AI Leap 2025, the program will give students and teachers free access to the world’s leading AI applications, along with the appropriate training to use them effectively in learning. It goes into effect on Sept. 1.

“Artificial intelligence has permanently changed the world, and like all sectors, the education system must adapt to these changes,” said Estonian President Alar Karis in a statement. “It will help Estonia become the world’s smartest nation.”

The program will initially include 20,000 high school students in grades 10 to 11 and their 3,000 teachers. The plan is to expand the program to vocational schools and new students in 2026, adding another 38,000 students and 2,000 teachers to the pool.

Negotiations have begun with OpenAI and Anthropic, with plans to involve other AI companies as well.