NE LB642

Establishes regulations for "high-risk artificial intelligence systems" that make consequential decisions (affecting education, employment, lending, housing, insurance, healthcare, legal services, or government services) without human review

Requires AI developers to use reasonable care to protect consumers from algorithmic discrimination, provide documentation on system limitations, training data, and discrimination risks, and maintain a public use case inventory starting February 1, 2026

Mandates AI deployers implement risk management policies, complete impact assessments for each high-risk AI system, and notify consumers when AI is used in consequential decisions affecting them

Requires disclosure to consumers when they are interacting with an AI system, and provides consumers the right to correct data and appeal adverse AI-made decisions with human review when feasible

Grants exclusive enforcement authority to the Attorney General with a 90-day cure period before action; exempts insurers, banks and credit unions subject to federal oversight, federally-approved systems, and systems used solely for scientific research