Alaska Senate Bill 177: Laying the Groundwork for Responsible AI Governance

Introduction

As artificial intelligence (AI) technologies continue to evolve and influence everything from hiring to healthcare, states across the U.S. are beginning to craft legislation to ensure their ethical and responsible use. Alaska has joined this movement with Senate Bill 177 (SB 177)—a forward-looking proposal introduced in 2025 that aims to establish a framework for AI governance in the state. While still in committee, SB 177 signals Alaska’s intent to proactively address the opportunities and risks posed by AI.

Understanding Alaska Senate Bill 177

SB 177 is currently in draft form and under committee review. While the full legislative text is still being finalized, the bill is categorized under Artificial Intelligence and is expected to focus on:

• Establishing Definitions and Scope: Clarifying what constitutes AI and automated decision-making systems within Alaska’s legal framework.
• Ethical Use and Oversight: Proposing guidelines for the ethical deployment of AI, particularly in high-impact areas such as employment, public services, and law enforcement.
• Transparency and Accountability: Requiring disclosures when AI is used in decision-making processes that affect individuals, such as hiring or access to services.
• Public Sector Standards: Encouraging or mandating state agencies to adopt responsible AI practices, including risk assessments and human oversight.

Why This Matters for Employment

AI is increasingly used in employment contexts—from resume screening and interview scheduling to performance monitoring and workforce analytics. SB 177 is expected to address these applications by:

1. Requiring Transparency in Hiring Tools: Employers may need to disclose when AI is used in recruitment or evaluation processes.
2. Preventing Algorithmic Bias: The bill could mandate fairness audits or bias testing to ensure AI systems do not discriminate based on race, gender, or other protected characteristics.
3. Protecting Worker Rights: Employees may gain new rights to understand and contest decisions made by AI systems.

The Role of Third-Party Audits

Third-party audits are likely to become a cornerstone of compliance under SB 177. These audits can:

• Validate Fairness and Accuracy: Ensure AI systems used in employment are free from bias and function as intended.
• Support Legal Compliance: Provide documentation that demonstrates good-faith efforts to meet regulatory standards.
• Build Trust: Show employees and applicants that the organization is committed to ethical and transparent AI use.

How Canopy Can Help

Canopy offers a suite of tools and services to help organizations prepare for and comply with AI regulations like SB 177:

1. AI Governance Frameworks: Develop internal policies aligned with emerging state and federal AI laws.
2. Third-Party AI Audits: Conduct independent assessments of AI systems used in hiring, HR, and operations.
3. Bias and Risk Assessments: Identify and mitigate risks in automated decision-making tools.
4. Training and Education: Equip HR and compliance teams with the knowledge to manage AI responsibly.
5. Ongoing Monitoring: Track AI system performance and compliance over time.

Conclusion

Alaska Senate Bill 177 represents a proactive step toward responsible AI governance. While still in committee, the bill reflects growing recognition of the need to regulate AI in ways that protect individuals and promote fairness—especially in employment. Canopy’s solutions are designed to help organizations stay ahead of these changes and lead with integrity in the age of AI.