UPDATE – MAY 2025: This article outlines Virginia Governor Glenn Youngkin’s Executive Directive Number Five, issued in September 2023. The directive instructed state agencies to study AI’s legal, workforce, and economic implications and provide recommendations by December 1, 2023. While Virginia has not enacted a comprehensive AI regulatory framework as of May 2025, the directive laid groundwork for broader state engagement with AI ethics, education, and modernization. BABL AI continues to monitor these developments and offers AI risk assessments and compliance support tailored to public sector needs.
ORIGINAL STORY:
Virginia Governor Issues AI Directive to Shape State Policy and Innovation
As lawmakers in Washington D.C. go back and forth on potential AI regulations, one stateside Governor has issued an executive directive on AI. Virginia Governor Gov. Glenn Youngkin announced Executive Directive Number Five on September 20. In the announcement, Gov. Youngkin acknowledges the critical role that state governments must play when it comes to regulation and oversight of AI.
Gov. Youngkin says that the growing expansion of AI and its analytical power over the coming years is the reason behind his directive. He says the need for this in Virginia is because the state is home to a rapidly evolving entrepreneurial ecosystem as well as several colleges and universities which are leading the nation in technological research and development. That’s why in the directive, Gov. Youngkin calls for the Office of Regulatory Management (ORM) to coordinate with the Chief Information Officer (CIO) and other secretariats to address the legal and regulatory environment, look at AI’s impact on education and workforce development, modernize the state government’s use of AI and develop a plan when it comes to AI’s impact on economic development and job creation.
Legal and Regulatory Goals
When it comes to laws and regulations, the directive calls for the ORM and CIO to tackle this issue in three ways. First, they want both to comb over existing laws and regulations to see how they may already apply to AI, and if the laws will need updating. Second, they want both to ensure that use of AI by the state government is transparent, security and impartial. Finally, they want both to make recommendations for uniform standards for responsible, ethical and transparent use of AI across all state agencies and offices.
Education and Workforce Development
For education and workforce development, the ORM and CIO will work with the Department of Education and higher education institutions to develop a plan. That plan must promote guidelines for the use of AI tools which impact learning and prohibit cheating, as well as examine the potential uses of AI tools for personalized tutoring, and include AI-related topics in technology, computer science and data analytics courses. For workforce development, the ORM and CIO must ensure public school students are prepared for future careers that involve AI technologies, and support opportunities for state colleges and universities to contribute to AI research through collaboration with public and private entities.
Government Modernization Through AI
For modernization, the ORM and CIO will identify opportunities for the secure and transparent use of AI systems to improve state government operations. The ORM and CIO will also evaluate the potential effects of AI systems on functions of the government while making sure they’re protecting the data and privacy of the public. Finally, the ORM and CIO will develop ethical guidelines and best practices for the use of AI across the state government with a focus on accountability and transparency.
Economic Development and Labor Market Strategy
For economic impact, the directive calls for a joint strategy with the Virginia Economic Development Partnership to:
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Identify key industry sectors that could benefit from AI.
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Promote AI entrepreneurship and innovation.
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Evaluate AI’s effect on Virginia’s labor market.
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Support displaced workers through retraining programs.
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Coordinate with workforce training systems to build an AI-ready workforce.
The directive instructs all recommendations to be submitted by December 1, 2023.
Next Steps for State AI Governance
Although the directive doesn’t carry legislative authority, it has sparked a meaningful dialogue on AI regulation, ethics, and innovation in Virginia. BABL AI continues to assist public institutions—including state agencies and universities—with audit-readiness, risk assessments, and responsible AI governance planning.
