Kentucky Passes Bill to Regulate AI in Government

Summary
On March 24, 2025, Kentucky Gov. Andy Beshear signed a bill that gives the Commonwealth Office of Technology responsibility for creating, maintaining and implementing policies and procedures for the transparent, ethical use of generative AI by the government. The Commonwealth Office must also prioritize privacy and the protection of individuals’ and businesses’ data, considering and documenting possible discrimination, oversight, risks and benefits of the use of generative AI. Any governmental body must disclose the use of generative AI when rendering and informing decisions related to citizens and producing output accessible to the public, providing options to appeal consequential decisions involving AI. In addition, each department is expected to create a report on the benefits and risks of generative AI use to the Commonwealth Office. The bill also calls for the creation of an Artificial Intelligence Governance Committee to regulate government use of AI and fulfill the new responsibility. The Committee is tasked with developing standards, maintaining a registry of the used generative AI systems, create an approval process for the registration of applications.