AI Frontier Institute

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

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Alabama SB328, the "Agentic Artificial Intelligence Regulatory Review Act" (Section 1), has not been enacted. It was introduced by Senator Elliott on 25 Feb 2026 and referred to the Senate Committee on Fiscal Responsibility and Economic Development, where it is pending. If enacted, it would require every executive-branch agency authorized to adopt rules to use AI to review its rules and guidance documents, whether or not the agency is covered by the Alabama Administrative Procedure Act. Under Section 3, each agency would complete a comprehensive AI-assisted review by April 1, 2027, and then repeat it quarterly. Agencies would have to acquire or develop agentic AI systems able to do the analyses. Section 4 requires the AI to analyze, for each rule or guidance document: whether it is discretionary or mandated; conflicts or duplication; comparison with neighboring states and federal standards; plain-language quality; compliance costs; possible simplification; and economic impact through a cost-benefit analysis. Section 5 requires qualified agency staff (with subject-matter expertise, legal or regulatory experience, and authority to approve or reject) to verify and approve the AI analyses. It also provides that no rule may be amended or repealed based solely on AI analysis without human review and approval. Section 6 requires agencies to eliminate conflicting rules, remove duplicative or unnecessary ones, fix plain-language problems, update outdated or burdensome rules, and correct citations. If staff keep a provision the AI flagged as unnecessarily burdensome, they must document its public benefits and why less burdensome alternatives are insufficient. Agencies subject to the Alabama Administrative Procedure Act must follow it when adopting or amending rules. Section 7 requires each agency to publish an annual report on its website before September 1. The report must give the number of items reviewed and modified or eliminated, a summary of accepted and rejected AI recommendations, and an estimate of cost savings to regulated persons. Section 8 sets an effective date of October 1, 2026.

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