On February 20, 2025, the Virginia legislature passed the High-Risk Artificial Intelligence Developer and Deployer Act (the “Act”).

The Act is a comprehensive bill that is focused on accountability and transparency in AI systems. The Act would apply to developers and deployers of “high-risk” AI systems that do business in Virginia. An AI system would be considered high-risk if it is intended to autonomously make, or be a substantial factor in making, a consequential decision. Under the Act, a consequential decision means a “decision that has a material legal, or similarly significant, effect on the provision or denial to any consumer” of: (1) parole, probation, a pardon, or any other release from incarceration or court supervision; (2) education enrollment or an education opportunity; (3) access to employment; (4) a financial or lending service; (5) access to health care services; (6) housing; (7) insurance; (8) marital status or (9) a legal service. The Act excludes a number of activities from what is considered a high-risk AI system, such as if the system is intended to perform a narrow procedural task or improve the result of a previously completed human activity.

The Act includes requirements that differ depending on whether the covered business is an AI system developer or deployer. The requirements are generally aimed at avoiding algorithmic discrimination, ensuring impact assessments, promoting AI risk management frameworks, and ensuring transparency and protection against adverse decisions. 

The Virginia Attorney General has exclusive authority to enforce the Act. Violations of the Act are subject to a civil penalty of up to $1,000, plus reasonable attorney fees, expenses and costs. The penalty can be increased up to $10,000 for willful violations. Notably, the Act states that each violation is a separate violation. The Act also provides a 45-day cure period. 

Virginia Governor Glenn Youngkin has until March 24, 2025 to sign, veto or return the bill with amendments. If enacted, the law would take effect July 1, 2026.