AI Frontier Institute

Artificial Intelligence; state agencies required to perform quarterly AI-assisted review of rules

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HB524 (Alabama, introduced 26 Feb 2026, pending in House State Government; not enacted) would create the "Agentic Artificial Intelligence Regulatory Review Act" (Section 1). If enacted, it would require every executive-branch agency authorized to adopt rules (Section 2) to use AI to complete a comprehensive review of all its rules and guidance documents by April 1, 2027, and then review them quarterly (Section 3(a)-(b)). Agencies must acquire or develop agentic AI systems able to do the analyses (Section 3(c)). Under Section 4, the AI would analyze whether requirements are discretionary or mandated, conflict with or duplicate other law, compare with neighboring states and federal standards, use plain language, impose compliance costs, can be simplified, and have an economic impact (including a cost-benefit analysis). Section 5 requires agency staff with subject-matter expertise, legal or regulatory experience, and approval authority to verify and approve the AI analyses and make final determinations; no rule may be amended or repealed based solely on AI analysis without human review and approval (Section 5(c)). Section 6 requires agencies to eliminate conflicting rules, remove duplicative or unnecessary ones, fix plain-language problems, update burdensome or outdated rules, and correct citations. Staff who retain provisions the AI flagged as unnecessarily burdensome must document the public benefits and why less burdensome alternatives are insufficient (Section 6(b)). Agencies subject to the Alabama Administrative Procedure Act must still follow it when adopting or amending rules (Section 6(c)). Section 7 requires each agency to publish an annual report on its website before September 1. The report must give the number of rules and guidance documents reviewed and modified or eliminated, a summary of accepted and rejected AI recommendations, and an estimate of cost savings to regulated persons. The act would take effect October 1, 2026 (Section 8).

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