Bill
HB 5899
Michigan creates a governed, limited GenAI pilot with an ethics-informed board to oversee state use, ensure safety, privacy, and oversight, and report outcomes.
HB 5899 (Michigan, 2025-2026) — Artificial Intelligence Pilot Program Act
Overview
- Purpose: Establish an artificial intelligence (AI) governing board, create a state AI pilot program, and set rules for how state departments and agencies may use generative AI (genAI) in a controlled, accountable manner.
- Scope: Applies to the Michigan state government, including departments and pilot participants (employees, agencies, or departments approved to participate).
Key Provisions
1) Definitions and scope
- Artificial intelligence: Machine-based system that, for human-defined objectives, can perceive environments, abstract perceptions into models, and use model inference to propose information or actions.
- Generative artificial intelligence (GenAI): AI that creates content (audio, video, code, images, text, simulations, etc.).
- Pilot program: An AI GenAI use program established by the Department of Technology, Management, and Budget (DTMB) for approved participants.
- Board: The artificial intelligence governing board created by the act.
- Pilot participant: Any state employee, agency, or department approved for the pilot.
2) Artificial intelligence governing board (Sec. 5)
- Composition: 3 members total
- Expert in AI or data science
- Expert in ethics, civil rights, or privacy
- Private sector representative
- Appointment and terms: Governor appoints initial members within 90 days; initial terms set as 1-year, 2-year, and 3-year staggered terms. Subsequent terms are 3 years.
- Meetings and operations: Board to meet quarterly (or more often). Quorum requires a majority; decisions by majority vote. Open Meetings Act compliance; records subject to Freedom of Information Act (FOIA); no board member compensation but possible expense reimbursement.
- Authority and duties:
- Provide recommendations on pilot design and implementation
- Advise on proposed GenAI uses and pilot applications
- Develop and update ethical guidelines and best practices for GenAI in state government
- Collect input from experts and stakeholders, advise on rulemaking, and issue nonbinding guidance to pilot participants
3) AI pilot program (Sec. 7)
- Establishment and timeline: Department must create and operate an AI GenAI pilot program; start no later than Jan 1, 2027; continue until the department, with board and CIO input, determines objectives are fulfilled.
- Guardrails and safety: Pilot activities must not violate laws, disclose or misuse personal or restricted information, or discriminate unlawfully. Must assess benefits and risks (innovation, content quality, service delivery, efficiency, employee development, administrative burden, public trust, security, privacy, and whether AI augments or replaces human judgment).
- Design and implementation actions: Consider board recommendations, develop policies, contract with vendors, approve/reject applications, create training materials, conduct testing and auditing, propose IT policy changes related to GenAI, and gather participant feedback. Must comply with data protection and cybersecurity standards.
4) Pilot participant requirements (Sec. 6)
- Applications: State employees/agencies may apply through a department-prescribed process; approval can be withdrawn by the director at any time.
- Use constraints:
- Must comply with all applicable laws and guidelines
- Do not expose confidential or restricted information to GenAI
- Ensure human review of GenAI outputs
- GenAI use requires department approval
5) Reporting and transparency (Sec. 7(7)-(9))
- Post-pilot reporting: Within 180 days after the pilot ends, the department must submit a written report to the Governor, Senate Secretary, House Clerk, and Board; publish a public version online. Report topics include:
- Time saved by participants using GenAI
- Efficiency improvements
- Identified risks, unintended consequences, or adverse effects
6) Funding and administration (Sec. 9)
- AI pilot program fund: Created in the state treasury to support pilot activities.
- Funding details: Treasurer manages deposits, investments, and accruals; department administers the fund for audits and uses it only for purposes of implementing the act.
7) Rulemaking (Sec. 11)
- The department may promulgate rules to implement the act under the Administrative Procedures Act.
Impacts and Implications
Who is affected:
Potential benefits:
Potential risks and controls:
Timeline:
This bill would create Michigan’s framework for exploring GenAI in government through a dedicated governing board, a pilot program with strict safeguards, and ongoing oversight and evaluation.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
