Virginia: New High-Risk Artificial Intelligence Developer and Deployer Act

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Employers with Employees in VA

EFFECTIVE

July 1, 2026

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Quick Look

  • Virginia’s HB 2094 will impose regulations on businesses developing or deploying “high-risk” AI systems, requiring transparency, risk assessments, and documentation of system limitations.

Discussion:

On February 20, 2024, the Virginia General Assembly passed the High-Risk Artificial Intelligence (AI) Developer and Deployer Act (HB 2094). If signed by Governor Glenn Youngkin, effective July 1, 2026, Virginia would become the next U.S. state to implement a broad framework regulating AI use, particularly in high-risk applications.

 

The law applies to both developers and deployers of high-risk AI systems, with “developers” being organizations that create or modify high-risk AI systems, and “deployers” using these systems for consequential decisions regarding Virginia residents. High-risk systems include machine-learning-based systems that (1) serve as the principal basis for consequential decisions, meaning they operate without human oversight, and (2) that are explicitly intended to autonomously make or substantially influence such decisions.

 

HB 2094 establishes a duty of care for AI system developers, requiring them to document any known limitations of their systems. Deployers are also tasked with ensuring transparency, including disclosing any algorithmic risks and conducting impact assessments. The law outlines that generated synthetic content from high-risk AI, such as audio, images, text, and videos, must be identifiable and detectable using industry-standard tools.

 

Enforcement of HB 2094 is overseen by the Virginia Attorney General, who can impose fines ranging from $1,000 for each violation to $10,000 for willful violations. However, businesses are granted a 45-day “right to cure” period before formal penalties are applied. The law also provides a process for enforcement, including the issuance of civil investigative demands. There is no private right of action under HB 2094, meaning only the Attorney General can pursue violations.

 

For employers in Virginia, compliance with HB 2094 will require assessing how AI is used in consequential decision-making processes that affect employees, ensuring transparency, and implementing necessary disclosures and impact assessment procedures.

 

Action Items

  1. Review use of AI systems in the workplace and prepare for future compliance obligations.

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