MD HB1331

Regulates "high-risk" AI systems that make or substantially contribute to decisions producing legal or similarly significant effects on consumers, requiring developers to provide standardized disclosure documentation on system purpose, intended uses, training data, and algorithmic discrimination risks

Requires deployers of high-risk AI systems to implement risk management policies, complete annual impact assessments, retain records for at least 3 years, and provide consumers opportunities to correct data and appeal adverse decisions with human review

Defines "algorithmic discrimination" as differential treatment negatively impacting persons based on age, color, disability, ethnicity, genetic information, English proficiency, national origin, race, religion, reproductive health, sex, veteran status, or other protected classes

Exempts deployers with fewer than 50 full-time employees from certain requirements if they use the AI system as intended by the developer and provide the developer's impact assessment to consumers

Makes agreements allowing creation of digital voice/likeness clones unenforceable unless they include clear descriptions of intended uses, licensing terms, and the person was represented by a lawyer or covered by a union collective bargaining agreement

Violations constitute unfair, abusive, or deceptive trade practices under the Maryland Consumer Protection Act, enforceable by the Attorney General; effective October 1, 2025