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.
Fragmented Policies Across Agencies
The report notes that many state agencies already rely on AI for public services, data processing, and safety-related tasks. However, only the Cabinet for Health and Family Services (CHFS) has a formal AI policy. That policy aligns with federal standards, including guidance from the National Institute of Standards and Technology (NIST). Other agencies lack clear rules, creating an uneven and sometimes risky approach to AI use.
Recommendations for Statewide Oversight
To close these gaps, the report recommends that the Commonwealth Office of Technology (COT) lead a coordinated effort to create AI regulations. Suggested steps include defining AI in statute, setting procurement and training requirements, and developing consistent implementation rules. The report also stresses the need for a yearly statewide inventory of all AI systems. This would help track where AI is used, how it operates, and whether it meets risk and compliance standards. Staff identified 38 AI systems across seven agencies in a preliminary inventory. These tools support tasks like virtual assistance, data analytics, and document processing.
Risks and Need for Accountability
Although AI provides clear benefits, the report warns that poorly governed systems can create security problems, privacy concerns, and biased outcomes. It calls for strict risk assessments to prevent unintended harm and recommends stronger oversight to ensure accountable use of AI across state government.
A Path Toward Responsible Adoption
The report concludes that Kentucky needs a unified policy to manage AI responsibly and ethically. Establishing a standard definition of AI and conducting annual inventories would give lawmakers and agency leaders a solid foundation for future decisions. With a statewide framework, Kentucky could serve as a model for other states seeking to balance innovation with public trust.
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