Maryland Gov. Wes Moore Tees Up State Leaders’ AI Regulation Plan

State governors are stepping in where the federal government has stalled on AI regulation. Led by Maryland Governor Wes Moore, a bipartisan coalition is developing a framework to govern how artificial intelligence is used across various industries. While this initiative covers broad technology use, it has direct implications for any retailer or service provider using AI-driven credit scoring, automated customer service bots, or personalized financing offers. For your business, this signals a shift toward a localized regulatory environment. Instead of one national standard, you may soon face a patchwork of state-level rules governing how you use software to approve customers for financing. These regulations typically focus on preventing algorithmic bias and ensuring transparency in how data is handled. If you use third-party platforms for BNPL or credit applications, you will need to ensure those partners are compliant with varying state mandates. The goal of this coalition is to create some level of uniformity, but the immediate result will likely be increased scrutiny on the 'black box' algorithms that decide who gets credit and at what rates. Operators should prepare by auditing their current AI tools and ensuring they have clear disclosures for consumers regarding automated decision-making.

Source: PYMNTS

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