AI Frontier Institute

State management: other; artificial intelligence pilot program; establish for state departments and agencies. Creates new act.

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Michigan House Bill 5899, the 'Artificial Intelligence Pilot Program Act,' establishes a framework for testing generative AI in state government operations. Section 5 creates a three-member Artificial Intelligence Governing Board within the Department of Technology, Management, and Budget (DTMB), appointed by the governor, with expertise in AI/data science, ethics/civil rights/privacy, and the private sector. Board members serve staggered terms of one, two, and three years, with subsequent terms of three years. The board must meet at least quarterly, operate under the Open Meetings Act, and is subject to FOIA. Its duties include recommending ethical guidelines and best practices for generative AI, advising on pilot program applications, and issuing nonbinding guidance to participants. Section 7 directs DTMB to establish a pilot program no later than January 1, 2027, allowing state employees, agencies, and departments to apply to use generative AI in their work. The program prohibits unlawful activities, unauthorized data access, privacy violations, and illegal discrimination. It requires human review of every AI output, bars use of restricted or confidential information with unapproved AI tools, and mandates compliance with state and federal data protection and cybersecurity standards. Within 180 days after the program concludes, DTMB must submit a public report on time savings, process efficiencies, and identified risks. Section 9 creates the Artificial Intelligence Pilot Program Fund in the state treasury for program implementation. Section 11 authorizes DTMB to promulgate rules under the Administrative Procedures Act of 1969.

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