Lamont proposes new AI venture fund, creating 2 jobs at DECD to coordinate AI strategy

HBJ PHOTO | DAVID KRECHEVSKY The State Capitol in Hartford.

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Gov. Ned Lamont has proposed creating a new state venture capital fund dedicated to investing in startups driven by artificial intelligence (AI) and quantum computing.

In addition, his $55.2 billion biennial budget proposal sets aside $200,000 in fiscal year 2027 to fund two new positions at the state Department of Economic and Community Development (DECD) to coordinate the state’s AI strategy.

Senate Bill 1249 would establish the new venture fund at Connecticut Innovations, the state’s quasi-public investment arm, which Lamont says has a “proven track record of investment and job creation.” He adds that the investments will fuel new growth made possible by “these rapidly developing technologies.”

According to the bill, AI is “poised to revolutionize the global economy by enhancing productivity, fostering innovation and driving efficiency across nearly all industries.”

It adds that Connecticut should position its economy to take advantage of AI’s “many breakthrough opportunities, while ensuring that this powerful technology is also used responsibly and in full compliance with the state’s strong and longstanding nondiscrimination and consumer protection laws.”

In addition to creating the venture fund at Connecticut Innovations, the bill also would expand the state’s Open Data Portal by directing state agencies to release “AI-ready datasets that could be useful” for AI systems, machine learning and other statistical means of data analysis “to create economic opportunity and support state economic development goals.”

The bill also directs multiple executive branch agencies to collaborate and develop a proposal for an “AI regulatory sandbox — to make Connecticut the most attractive state in the region for AI development in targeted industries: insurance, finance and health services.”

The bill would also bolster the Connecticut Unfair Trade Practices Act (CUPTA) to “make it clear that the use of AI is not a defense or omission to a claim of discrimination.”

The bill has been referred to the legislature’s General Law committee.

The two proposed new positions at DECD are intended to coordinate the state’s strategy for AI, Lamont said, including coordinating research efforts at the state’s institutions of higher education, curriculum development within K-12 schools and higher education institutions and data and technology investments.