artificial intelligence business; attorney general

HB 4098 requires commercial AI businesses using advanced systems (defined as those trained with over $100 million in costs) to conduct risk assessments for high-risk AI systems before use or sale. These businesses must submit transparency reports to Arizona's attorney general detailing system purposes, risk evaluations, and bias mitigation measures, with reports publicly posted online. The bill mandates quarterly audits to detect discrimination or safety issues, includes child safety tools for AI accessed by minors, and authorizes the attorney general to impose $50,000 civil penalties per violation. It directly affects large AI developers meeting specific cost thresholds, excluding academic research, and focuses on preventing bias, privacy violations, and harm in critical areas like healthcare and education.