Kentucky’s Legislative Research Commission recently published an in-depth AI policy report highlighting the growing use of artificial intelligence (AI) within the state’s executive branch and outlining the need for a cohesive, statewide AI governance strategy. The report, commissioned by the Legislative Oversight and Investigations Committee, emphasizes that rapid AI development and deployment in state agencies pose unique governance and ethical challenges, requiring a structured approach aligned with national standards.

The report found that while Kentucky’s executive branch extensively uses AI for tasks ranging from citizen services to public safety, only the Cabinet for Health and Family Services (CHFS) has a defined AI policy. Other agencies lack standardized AI guidelines, creating a fragmented approach to managing AI technologies. The CHFS policy, aligned with federal standards from agencies like the National Institute of Standards and Technology (NIST), serves as a model for responsible AI governance across Kentucky.

To promote consistent oversight, the report recommends that the Commonwealth Office of Technology (COT) lead efforts to establish regulatory definitions, policies for AI procurement, implementation, and training. Further, it advises Kentucky to conduct an annual inventory of AI systems across the executive branch, ensuring that any technology with AI components is tracked and evaluated for compliance and risk.

Staff compiled a preliminary inventory identifying 38 AI systems across seven executive branch agencies, highlighting applications such as virtual assistants, data analytics, and document processing. Despite these benefits, the report warns of potential risks including data security concerns, privacy issues, and the risk of biased outcomes due to inadequate training data. To address these risks, the report calls for rigorous risk assessment policies to safeguard against unintended impacts of AI.

The report’s findings underscore the need for a well-defined AI policy to guide Kentucky’s adoption of AI responsibly and ethically. By implementing these recommendations, Kentucky can set a precedent for other states, ensuring that AI’s benefits are harnessed while minimizing risks. The first steps, the report concludes, should be a statutory definition of AI and an annual statewide inventory to provide a foundation for informed decision-making and accountability.

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