Virginia to regulate high-risk AI systems by 2026
VIRGINIA, UNITED STATES — Virginia is set for a bold move with its High-Risk Artificial Intelligence Developer and Deployer Act, a comprehensive bill aimed at regulating AI systems that autonomously influence critical consumer decisions.
The state legislative body approved this law on February 20, 2025 that the developers and deployers of high-risk AI systems must follow strict compliance rules that involve tracking bias patterns through assessments and providing clear information to consumers.
Key provisions of the Virginia AI Act
The law categorizes businesses as either developers or deployers of AI systems. Developers, who create or modify AI-driven customer experience systems, must take steps to prevent discrimination, disclose system purposes and limitations, and maintain documentation for bias monitoring.
Deployers, who use AI systems for customer interactions, must implement risk management policies, conduct impact assessments before deployment, and inform customers when AI is involved in decision-making.
Adverse decisions must be explained with an opportunity for correction, and documentation must be kept for at least three years.
The Act also includes specific regulations for generative AI (GenAI) in customer experience applications, requiring detectable markers for synthetic content like AI-generated product demos or virtual try-ons. Exemptions apply to creative works together with artistic expressions employed in marketing activities.
Companies that do not follow title III must pay fines of minimum $1,000 per violation for non-willful actions while willful violations can attract maximum penalties of $10,000.
What is high-risk AI?
The legislation aims to regulate artificial intelligence systems that autonomously or significantly influence critical consumer decisions. Targeted areas include customer service automation, personalization, and financial recommendations, where AI plays a pivotal role in shaping outcomes for consumers.
According to The Contact Center AI Association, examples of high-risk AI applications include:
- Automating decisions on product or service eligibility
- Generating personalized financial offers
- Determining access to premium services or customer tiers
- Resolving disputes and processing claims
- Influencing credit approvals and financing options
These regulations are designed to address the potential risks posed by AI in these critical functions while ensuring transparency and fairness in decision-making processes.
Emerging trends in AI governance
Governments across the nation establish new AI governance frameworks as part of this emerging trend. When it comes to AI governance Colorado has already adopted parallel policies and states such as California and Illinois who also have regulatory models.
Globally, the European Union’s AI Act is setting stricter standards, with potential provisions like granting consumers “the right to talk with a human.”
As AI matures, businesses must stay informed about evolving regulations to avoid legal and financial repercussions. The direction AI technology takes demonstrates why proper regulatory controls remain essential for achieving ethical and transparent implementations of AI systems.
