Introduction
Virginia is advancing its legislative framework to address discrimination arising from the use of artificial intelligence (AI) systems [5]. The High-Risk Artificial Intelligence Developer and Deployer Act (HB 2094) positions Virginia as a leader in tackling algorithmic discrimination, following similar efforts in Colorado [6]. This legislation emphasizes transparency [3], fairness [3] [5], and consumer protections in AI applications, particularly in critical decision-making areas [3].
Description
Virginia has advanced its legislative framework to address discrimination arising from the use of artificial intelligence (AI) systems through the High-Risk Artificial Intelligence Developer and Deployer Act (HB 2094) [5]. This significant legislation [6], passed by the Democrat-controlled legislature and awaiting consideration by Republican Governor Youngkin, will take effect on July 1, 2026 [3] [5] [6], positioning Virginia as the second state in the nation to tackle algorithmic discrimination, following similar efforts in Colorado [6]. The Act emphasizes the importance of transparency, fairness [3] [5], and consumer protections in AI applications, particularly in critical decision-making areas such as education enrollment [3], financial services [4], lending [1] [3] [5], housing [3] [5], and healthcare [4].
The Act specifically targets high-risk AI systems that autonomously make or significantly influence consequential decisions affecting core rights or opportunities [3]. To activate its anti-discrimination provisions [3] [5], AI must be the “principal basis” for a decision [3] [5] [6], establishing a higher threshold than Colorado’s “substantial factor” standard [3]. Developers and deployers of these systems are mandated to conduct thorough risk assessments to evaluate potential biases or discriminatory outcomes before deployment and after significant modifications. They are also required to exercise a reasonable duty of care [5], disclosing relevant information about the AI systems [5], including their intended uses [3], limitations [1] [3], and measures taken to mitigate algorithmic discrimination [3], with updates to these disclosures required within ninety days of significant changes.
In addition, deployers of high-risk AI systems must implement tailored risk management policies and conduct impact assessments to ensure compliance with established frameworks, such as the NIST AI Risk Management Framework or ISO/IEC 42001 [3]. The legislation also mandates that developers using generative AI models ensure that any content produced is identifiable as AI-generated [5].
Enforcement of the Act is exclusively vested in the Virginia attorney general, with no provision for a private right of action. Civil penalties for violations are set at $1,000 for non-willful infractions [6], escalating to $10,000 for willful violations [6], and a 45-day period is allowed for compliance correction. Certain sectors may be exempt from the law if they are already subject to equivalent or stricter regulations [5], such as federal agencies and regulated financial institutions [3]. The Act also protects businesses by not requiring the disclosure of trade secrets or privileged information [3].
As AI’s role in hiring and other critical areas expands, organizations involved in high-risk AI systems are encouraged to begin compliance planning to ensure that AI decisions are explainable, implement bias monitoring [2], and engage with AI vendors to align with regulatory expectations [2]. The enactment of HB 2094 reflects a significant shift in the governance of AI at the state level [5], underscoring the importance of responsible AI practices and consumer protection [5].
Conclusion
The enactment of the High-Risk Artificial Intelligence Developer and Deployer Act (HB 2094) marks a pivotal step in the governance of AI, emphasizing the need for responsible AI practices and consumer protection [5]. By setting a higher threshold for anti-discrimination provisions and mandating comprehensive risk assessments, Virginia is positioning itself as a leader in addressing algorithmic discrimination. This legislation not only impacts developers and deployers of AI systems but also sets a precedent for other states to follow, highlighting the growing importance of transparency, fairness [3] [5], and accountability in AI applications.
References
[1] https://www.williamsmullen.com/insights/news/legal-news/virginias-high-risk-ai-developer-and-deployer-act-awaits-governors
[2] https://www.forbes.com/sites/alonzomartinez/2025/02/28/ai-hiring-regulations-are-coming-how-virginias-hb-2094-could-set-a-national-standard/
[3] https://natlawreview.com/article/charting-future-ai-regulation-virginia-poised-become-second-state-enact-law
[4] https://www.jdsupra.com/legalnews/virginia-legislature-passes-high-risk-6283689/
[5] https://ogletree.com/insights-resources/blog-posts/charting-the-future-of-ai-regulation-virginia-poised-to-become-second-state-to-enact-law-governing-high-risk-ai-systems/
[6] https://www.jdsupra.com/legalnews/virginia-legislature-passes-high-risk-9847746/
