🔒Lawmakers consider bill to study AI program for small businesses

A bill that would require Connecticut officials to study how to help small businesses adopt artificial intelligence is drawing support from business groups and the state’s economic development agency, while labor leaders warn it could move too quickly without safeguards. Raised Bill 417, before the legislature’s Commerce Committee, directs the Department of Economic and Community Development to develop a plan for a potential program to encourage small businesses to adopt AI technologies. The proposal aims to improve productivity and the quality of goods and services, while strengthening Connecticut’s competitiveness in developing and deploying AI tools, according to the bill. The legislation does not create the program itself. Instead, it requires DECD to submit a plan, including any legislative recommendations, to lawmakers by Jan. 1, 2027. In testimony, DECD Commissioner Daniel O’Keefe supported the measure, saying it would position the state to better understand how to help small businesses integrate emerging technologies and remain competitive as AI adoption accelerates across industries. The Connecticut Business & Industry Association also backed the proposal, arguing that small businesses often lack the resources to evaluate and implement AI tools on their own. It said a state-led effort could help companies identify practical use cases and remain competitive with larger firms and out-of-state competitors. However, the Connecticut AFL-CIO urged lawmakers to reject or delay the bill, arguing that the state has not yet established sufficient guardrails around AI use. In written testimony, AFL-CIO President Ed Hawthorne said the rapid development of AI raises concerns about job displacement, data privacy and fairness, and warned that encouraging broader adoption without clear regulations could harm workers and consumers. The group said the bill is premature and called on lawmakers to first establish baseline standards governing AI use before promoting its expansion in the private sector. The debate reflects a broader policy tension as lawmakers weigh how to support innovation while addressing risks tied to emerging technologies. Because the bill only requires a study and plan, it would not immediately commit state funding or create new incentives. Any future program would require additional legislative approval. The bill was scheduled to be considered by the legislature’s Commerce Committee during its Tuesday meeting at 12:30 p.m.