MD HB712

Creates product liability causes of action against AI developers for defective design, failure to warn, and breach of express warranty, covering high-impact AI systems (used in consequential decisions, critical infrastructure, vehicles, medical devices) and generative AI systems

Allows deployers to be sued in place of developers if they made material changes to the product or intentionally misused it contrary to express warranty; exempts small businesses with fewer than 20 employees or 10,000 users from deployer liability

Establishes rebuttable presumption that AI is not defective if developers conducted documented testing consistent with industry best practices, mitigated and disclosed foreseeable risks, and addressed risks to minors for products likely to be used by children

Authorizes the Attorney General to bring enforcement actions seeking injunctive relief, civil penalties, and damages; requires 30 days written notice before seeking injunctive relief to allow opportunity to cure

Eliminates contributory negligence as a complete defense (damages reduced by plaintiff's percentage of fault), allows joint and several liability for developers and deployers, and bars autonomous AI causation as a defense; effective October 1, 2026