In one paragraph
South Carolina's S 963 would enact the Consumer Protections in Interactions with Artificial Intelligence Systems Act (Chapter 31 of Title 37). Developers and deployers of high-risk AI systems used in consequential decisions would owe a duty of reasonable care against algorithmic discrimination, with impact assessments, consumer notices and appeal rights. The Attorney General would have exclusive enforcement. Introduced February 26, 2026 and referred to the Senate Banking and Insurance Committee; it has not passed either chamber.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill has not been enacted. Companies developing or deploying AI that influences lending, hiring, housing, healthcare, insurance or similar decisions in South Carolina would face assessment, notice and discrimination-reporting duties.
Key provisions
- A 'high-risk AI system' is one that makes, or is a substantial factor in making, a consequential decision affecting education, employment, lending, essential government services, healthcare, housing, insurance or legal services.
- Sec. 37-31-20: developers must use reasonable care against known or foreseeable algorithmic discrimination, give deployers documentation, publish a public statement, and report discrimination risks to the Attorney General and deployers within 90 days of discovery.
- Sec. 37-31-30: deployers must keep a risk management program referencing NIST AI RMF or ISO/IEC 42001, complete impact assessments at least annually, notify consumers before consequential decisions, and for adverse decisions give reasons, data-correction and an appeal with human review if technically feasible.
- Deployers with fewer than 50 full-time employees who do not train the system on their own data are exempt from certain duties, subject to conditions.
- Sec. 37-31-40: AI interaction must be disclosed to consumers unless obvious to a reasonable person.
- Sec. 37-31-60: the Attorney General has exclusive enforcement; a violation is an unfair trade practice; no private right of action; an affirmative defense exists for cured violations.
- Takes effect upon the Governor's approval. Referred to the Senate Committee on Banking and Insurance on February 26, 2026.
Latest legislative action
Feb 26, 2026. Referred to Committee on Banking and Insurance
Sponsors (showing 5 of 6)
| Name | Role |
|---|---|
| Alexander | Primary |
| Garrett | Primary |
| Hutto | Primary |
| Leber | Primary |
| Massey | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error