AI Frontier Institute

An act relating to liability standards for developers and deployers of artificial intelligence systems

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Vermont H.792 (2026) has not been enacted. It was referred to the House Committee on Commerce and Economic Development on 2026-01-28. If enacted, it would add 9 V.S.A. chapter 118 and set products-liability standards for developers and deployers of "high-impact" and generative AI systems, which the bill defines as "products" (§ 4193b). Products used strictly for peer-reviewed scientific research are excluded. Individuals and small businesses (fewer than 20 employees or fewer than 10,000 users) are not "deployers." Under § 4193c, a developer is liable only if the plaintiff proves the developer failed to use reasonable care in design, warnings or instructions, or an express warranty, and that this failure proximately caused harm. "Harm" includes property damage, physical, financial or reputational injury, illness or death, and emotional harm. The bill sets proof requirements for design defect, failure to warn, and express warranty claims. Danger is presumed not open and obvious to users under 18. Developers get a rebuttable presumption that the product is not defective if, and only if, they meet all of the following (§ 4193c(e)): - documented testing and auditing; - risk mitigation; - disclosure of risks to deployers and consumers; - an AI data sheet available to the Attorney General on request; - protections for likely minor users, such as age-gating and development-impact assessments; - inclusion of the data sheet information in the terms and conditions. Under § 4193d, a deployer is liable as a developer if it makes a material and substantial change to the product, or intentionally misuses it contrary to an express warranty. Intended use is not misuse. A licensee is not liable solely because it owns or uses the product. Deployers get a rebuttable presumption of non-defect if they maintain a qualifying risk management policy. Under § 4193e, the subchapter supplements existing tort and product liability law. Comparative negligence applies, and developers and deployers may be jointly and severally liable. Under § 4193f, violations are unfair and deceptive acts under 9 V.S.A. § 2453, and the Attorney General has rulemaking, investigation, and enforcement authority as under chapter 63. The effective date would be July 1, 2026 (Sec. 2).

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