AI Frontier Institute

Relating To Artificial Intelligence.

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Hawaii S.B. 2967 (33rd Legislature, 2026) amends Chapter 480 of the Hawaii Revised Statutes by adding a new part (Sections 480-A through 480-J) establishing consumer protection requirements for artificial intelligence systems. Section 480-A defines key terms including 'AI system,' 'automated decision tool,' 'consequential decision,' 'high-risk AI system,' 'deployer,' and 'vendor.' Section 480-B requires deployers to provide clear, conspicuous disclosure at the start of any consumer-facing AI interaction. Section 480-C requires plain-language notice and explanation when a high-risk AI system materially influences a consequential decision—such as in housing, credit, insurance, employment, education, health care, or legal services. Section 480-D establishes consumer rights to correct inaccurate information, seek reconsideration, and obtain human review of adverse actions by a trained individual with authority to overturn the decision. Section 480-E requires deployers to provide an AI user agreement disclosing limitations, data practices, and dispute processes, and voids any contractual terms that waive consumer rights. Section 480-F imposes a duty of reasonable care and requires a written risk management program including governance, testing, monitoring, data controls, and vendor oversight, plus annual internal impact assessments retained for at least five years. Section 480-G requires documentation of AI outputs used in adverse actions and grants consumers access to relevant records. Section 480-H mandates incident reports to the Executive Director of the Office of Consumer Protection and the Attorney General within 90 days of discovering material violations or algorithmic discrimination. Section 480-I prohibits deployers from using AI as a shield against accountability and makes violations an unfair or deceptive act or practice under Section 480-2. Section 480-J authorizes the executive director to adopt implementing rules.

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