Connecticut Law Regulating the Use of Artificial Intelligence in Hiring Decisions Takes Effect

Connecticut Law No. 5, known as the Artificial Intelligence Accountability and Transparency Act, took effect on October 1, 2026, and applies to automated technologies used in employment decisions. The law applies to tools that companies rely on to screen, evaluate, or rank applicants.

Under the law, developers of these systems must provide users with the necessary information to notify applicants and disclose the use of automated systems to them. This means that transparency responsibility is shared between the tool developer and operator, rather than resting solely on the hiring entity.

The law amends the state's anti-discrimination laws so that using an automated system is no longer a defense in a discrimination lawsuit, meaning relying on a system's decision does not exempt the employer from liability. The law does not mandate a bias audit, but it permits evidence of bias testing to be considered when assessing liability, restricting enforcement to the state's Attorney General.

This law impacts companies operating or hiring in the state, including technology firms selling automated hiring tools to external markets. The law signals a growing regulatory trend toward artificial intelligence in the labor market, a trend prompting companies in the Arab region to review how they utilize these tools in recruitment.

What do these terms mean?

Automated decision: A decision made by an electronic system based on rules and data instead of human evaluation. Disclosure: Informing a person that an automated system was used to evaluate their application. Bias audit: An examination of an automated system to determine if it discriminates against a specific group. Discrimination: Unfair treatment based on traits such as gender, race, or age. Attorney General: The chief legal officer in the state who files lawsuits on its behalf.