Maryland is emerging as one of the more active mid-Atlantic states on AI regulation. With 62 AI-related bills tracked in the 2025 session, Maryland lawmakers are addressing AI across healthcare, education, consumer protection, and product liability. None of these bills have been enacted yet, but the breadth of topics signals a legislature that is taking AI governance seriously.
Current Data
Currently tracking 62 bills in Maryland. 0 enacted, 21 in committee. Data updates automatically.
Behavioral Health AI Ban: HB 883
House Bill 883 targets one of the highest-risk applications of AI: behavioral health care. The bill would prohibit developers of artificial intelligence from making, or knowingly causing AI to make, certain representations or statements, or from providing services or experiences that simulate a behavioral health care provider. This is one of the most direct AI-in-healthcare restrictions proposed in any state this session.
Who Is Covered
AI developers whose systems interact with Maryland residents in a behavioral health context. This includes chatbot developers, mental health apps, and AI therapy platforms.
Key Restrictions
- Prohibition on AI simulating a behavioral health care provider
- Restrictions on AI making representations about behavioral health treatment
- Applies to developers, not just deployers
AI Toy Safety: HB 1261 (Artificial Intelligence Toy Safety Act)
House Bill 1261 would establish child safety and data privacy requirements for toys featuring artificial intelligence. The bill requires AI toys to contain specific labeling and prohibits certain data collection practices. Companies manufacturing or selling AI-enabled toys to Maryland consumers should monitor this bill closely.
Key Requirements
- Mandatory labeling for AI-enabled toys
- Data privacy protections for children interacting with AI toys
- Restrictions on certain data collection by AI toy manufacturers
Health Insurance AI Accountability: HB 1385 and HB 795
House Bill 1385 would require that audits and compliance reviews of AI tools used for utilization review include an evaluation by a licensed health care professional. This targets health insurers and managed care organizations that use algorithms to approve, deny, or modify coverage decisions.
House Bill 795, the "AI Health Insurance Accountability Act," goes further by requiring that a carrier's internal grievance process provide human review of grievances resulting from adverse decisions made using AI or algorithms, and mandates reporting to the Maryland Insurance Administration on AI tool usage.
AI Product Liability: HB 712
House Bill 712 would establish a cause of action against developers of certain AI systems for defective design, failure to provide adequate instruction or warning, and breach of express warranty. This is a significant liability proposal that would give Maryland consumers direct legal recourse against AI developers whose products cause harm.
Algorithmic Pricing and Wage Surveillance: HB 148
House Bill 148 would prohibit surveillance-based price and wage setting, making violations an unfair, abusive, or deceptive trade practice. This targets companies using AI to monitor and set prices or wages based on competitor or employee surveillance data. See our algorithmic pricing laws guide for related bills in other states.
AI in Education: HB 1057, SB 720, SB 375, and SB 597
Maryland has four education-focused AI bills this session:
- HB 1057 / SB 720 (the "Artificial Intelligence Readiness Act") — would require the State Department of Education to provide guidance on AI to local school systems, educators, parents, and students, and establish a collaborative for AI in education
- SB 375 — would require AI training programs for county board of education members
- SB 597 — would establish the Maryland Artificial Intelligence Partnership within the University System of Maryland to coordinate AI initiatives across the state
All Tracked Bills
| Bill | Topic | Status |
|---|---|---|
| HB 883 | Behavioral health AI prohibitions | In Committee |
| HB 1261 | AI toy safety & data privacy | Introduced |
| HB 1385 | Health insurance AI — human evaluation | Introduced |
| HB 795 | AI health insurance accountability | Introduced |
| HB 712 | AI product liability | Introduced |
| HB 148 | Surveillance-based pricing & wage ban | Introduced |
| HB 1057 | AI readiness in education | In Committee |
| SB 720 | AI readiness in education (companion) | In Committee |
| SB 375 | AI training for school boards | Introduced |
| SB 597 | Maryland AI Partnership (higher ed) | In Committee |
| HB 1120 | Professional licensing portability | In Committee |
| HB 420 | Service member civil relief (licensing) | In Committee |
| SB 242 | Service member civil relief (companion) | In Committee |
| SB 418 | Foreign service licensing portability | In Committee |
Compliance Checklist for Maryland
- Audit behavioral health AI products — if you offer AI chatbots or tools in the mental health space, HB 883 could directly restrict your operations in Maryland
- Review AI toy products — manufacturers and retailers of AI-enabled children's toys should prepare for labeling and data privacy requirements under HB 1261
- Assess health insurance AI usage — insurers using AI in utilization review should prepare for human-review requirements under HB 1385 and grievance process changes under HB 795
- Evaluate product liability exposure — AI developers with Maryland users should monitor HB 712 for new liability obligations
- Check algorithmic pricing practices — businesses using AI for dynamic pricing or wage setting should review HB 148 compliance
- Monitor education AI requirements — EdTech companies serving Maryland schools should track the four education-focused bills
For a complete index of Maryland AI legislation, visit our Maryland AI laws tracker.
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
— AI Laws by State Team
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