Annual or periodic testing requirements to detect discriminatory outcomes in AI decision systems. Here is what South Carolina businesses need to know in 2026.
South Carolina does not yet have a specific law for this use case, but AI Task Force. Governor's AI task force issued recommendations. Legislation expected 2027.
State law does not replace federal law — you must comply with both. These federal rules apply to ai bias audit nationwide:
South Carolina's AI Task Force often includes size-based exemptions. Businesses with fewer than 25 employees may be exempt, but should verify thresholds. Always review the specific statute for employee count and revenue thresholds.
The key deadline in South Carolina is TBD. The law is still developing — monitor for final rules.
South Carolina penalties for AI non-compliance: TBD. While enforcement is still developing, companies found non-compliant face civil penalties and potential litigation.
Federal law does not currently preempt state AI laws. South Carolina's AI Task Force applies independently of federal rules. Federal laws like ECOA, FCRA, and HIPAA also apply alongside state law — so you must comply with both.
Best practice: document all AI systems used, conduct an internal audit, implement required disclosures, and keep records for at least 3 years. For high-risk uses like ai bias audit, consider hiring an independent third-party auditor to validate compliance.
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