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18/02/2025 - Indiana Regulates AI in Public Contracts: Key Legal Implications (USA)

argument: Notizie/News - Digital Governance

Source: Justia

The Justia article examines Indiana’s new AI procurement law, which sets guidelines for the use of artificial intelligence in public sector contracts. The law aims to ensure that AI technologies used by state agencies comply with transparency, accountability, and ethical standards.

A key provision of the law mandates that all AI-powered tools used in public contracts must undergo a risk assessment to evaluate their potential biases, security vulnerabilities, and compliance with state and federal laws. This requirement is particularly relevant for AI systems used in law enforcement, healthcare, and public administration.

The legislation also introduces disclosure requirements. Vendors bidding on state contracts must clearly state whether their systems incorporate AI and how AI decisions impact outcomes. This measure seeks to prevent “black-box” AI models from influencing critical government operations without oversight.

Another critical aspect is the emphasis on human oversight. Indiana’s law requires that AI-driven decisions, especially those affecting citizens’ rights (e.g., automated benefit determinations or legal processing), must be subject to human review.

Legal experts suggest that Indiana’s law reflects a growing trend among U.S. states to regulate AI in government use, particularly in response to concerns over algorithmic bias and AI accountability. The article concludes by discussing potential future amendments and how other states might adopt similar AI procurement laws.