Maryland AI Laws and Regulation (2026)

Maryland has emerged as one of the most active states in the country on artificial intelligence regulation. The state has enacted legislation addressing AI governance in state government, facial recognition in hiring, deepfake intimate images, and healthcare AI decision-making. Governor Wes Moore's executive order and AI Subcabinet have positioned Maryland as a leader in government AI oversight, while the legislature continues pushing ambitious consumer protection bills.

This guide covers Maryland's enacted AI laws, executive branch policies, pending legislation, and how federal developments affect the state's regulatory framework.

This article is for informational purposes only and does not constitute legal advice. AI regulation is evolving rapidly. Consult a licensed Maryland attorney for advice about your specific situation.

Enacted AI Laws in Maryland

Maryland has enacted more AI-related legislation than most states, with laws spanning government operations, employment, criminal law, and healthcare.

AI Governance Act of 2024 (SB 818)

The Artificial Intelligence Governance Act of 2024 (SB 818, Chapter 496) is Maryland's cornerstone AI governance law. Signed by Governor Moore on May 9, 2024, this law establishes a comprehensive framework for how state government agencies develop, procure, deploy, and assess AI systems.

Key Requirements:

Each unit of Maryland state government must conduct inventories of all systems that employ high-risk artificial intelligence. Agencies using high-risk AI must perform regular impact assessments as determined by the AI Subcabinet.

The law directs the Department of Information Technology (DoIT) to develop policies and procedures governing AI use across state government. These policies must be made publicly available on DoIT's website within 45 days of adoption. The department has since published Responsible AI Policy Implementation Guidance.

AI Subcabinet:

The law codifies the Governor's AI Subcabinet into statute, tasking it with facilitating cooperation among state agencies, overseeing policy implementation, and developing a roadmap to review the risks and opportunities of AI in state services.

Facial Recognition in Hiring (HB 1202)

Maryland was one of the earliest states to regulate AI in employment. HB 1202, enacted as Chapter 446 in 2020, prohibits employers from using facial recognition services during job interviews without the applicant's written consent.

Consent Requirements:

Before using facial recognition during an interview, an employer must obtain a signed waiver from the applicant that includes:

• The applicant's name
• The date of the interview
• A statement that the applicant consents to the use of facial recognition
• Confirmation that the applicant has read the waiver

Scope:

The law applies to facial recognition services that analyze facial movements, word choice, and speaking voice to generate assessment scores during interviews. These AI-driven hiring tools compare applicants' scores to evaluate candidates.

Maryland, along with Illinois and New York City, is one of only three jurisdictions in the United States with laws specifically regulating AI in the hiring process.

Deepfake Intimate Images (SB 360)

Maryland Senate Bill 360 expanded the state's revenge pornography statute to cover AI-generated deepfakes, effective July 1, 2025. The bill passed unanimously in both chambers: 47-0 in the Senate on March 12, 2025, and 140-0 in the House on April 7, 2025.

Definition of Visual Representation:

The law defines "visual representation" as an unaltered image of a person or a computer-generated image, created with or without existing depictions, that is indistinguishable from the person to an ordinary observer. This encompasses both authentic imagery and AI-generated deepfake content of a sexual or intimate nature.

Criminal Penalties:

Offense	Maximum Imprisonment	Maximum Fine
Distribution of nonconsensual intimate images (including deepfakes)	2 years	$5,000

Civil Remedies:

SB 360 also created a civil cause of action, allowing victims to file lawsuits against individuals who distribute nonconsensual intimate imagery. This provides victims a legal avenue to seek compensation and accountability, which is particularly valuable when identifying anonymous distributors is difficult.

Healthcare AI Utilization Management

Maryland enacted legislation regulating AI in healthcare utilization management decisions, effective October 1, 2025. The law closely mirrors California's 2024 healthcare AI law and focuses on ensuring AI tools support, rather than replace, clinician medical necessity determinations.

Key Requirements:

Health insurance carriers, including insurers, nonprofit health plans, HMOs, and dental organizations, must ensure that AI-driven utilization decisions consider the patient's entire clinical picture. Carriers must annually post on their websites:

• Thresholds for human review of AI decisions
• Rates of decision overturn on appeal
• Misdiagnosis rates
• Instances where AI suggestions might disregard patient-specific factors such as preexisting conditions or care preferences

Annual Audits:

Organizations must undergo annual third-party audits evaluating whether their AI systems align with medical care standards, meet ethical standards, and do not excessively delay care.

Penalties:

The relevant department or commissioner can impose penalties of up to $10,000 per offense, with the amount determined by violation severity, intent, and compliance history.

Deepfake Laws and Elections

SB 361: Election Deepfake Prohibition

Maryland introduced Senate Bill 361 in January 2025, titled "Election Law: Influence on a Voter's Voting Decision By Use of Fraud: Prohibition." The bill strengthens Maryland's election laws by prohibiting the use of deepfakes and synthetic media to fraudulently influence voters.

Key Provisions:

The bill defines fraud to include the use of "synthetic media," meaning a false image, audio recording, or video recording that has been purposely created using artificial intelligence and digital technology to mimic a real candidate's appearance, speech, or conduct.

Under SB 361, a person is prohibited from using synthetic media to influence or attempt to influence a voter's voting decision. Violations are treated as election fraud under Maryland election law.

The bill passed the Maryland Senate and awaited action in the House as of early 2025. The R Street Institute submitted testimony opposing the bill on First Amendment grounds.

Executive Branch AI Policy

Governor Moore's Executive Order (January 2024)

On January 8, 2024, Governor Wes Moore signed Executive Order 01.01.2024.02, "Catalyzing the Responsible and Productive Use of Artificial Intelligence in Maryland State Government."

Core Principles:

The executive order establishes seven guiding principles for state government AI use: fairness, equity, innovation, privacy, safety, transparency, and accountability. All state agencies must follow these principles when deploying AI technologies.

AI Subcabinet:

The order created the AI Subcabinet to develop and implement a comprehensive AI action plan, create appropriate guardrails for agencies' AI use, and promote AI knowledge and talent in state government. The subcabinet is also tasked with identifying opportunities to use AI for economic development and business recruitment.

Cybersecurity Integration:

The executive order was part of a broader technology modernization effort that also established the Maryland Cybersecurity Task Force, bringing together experts from the state's IT department, Military Department, and Department of Emergency Management.

AI Advisory and Oversight Commission (SB 1087)

The Maryland AI Advisory and Oversight Commission was established through SB 1087 in 2024. The commission includes members from the state legislature, private AI sector, and State Board of Education.

The commission is required to report findings and recommendations to the Governor and General Assembly annually, beginning December 1, 2024. Its mandate includes guiding the state in growing and diversifying AI, ensuring diversity in AI-related contract awards and training programs, and assisting diverse groups in AI adoption.

Maryland Public Schools AI Policy

The Maryland State Department of Education issued a Responsible Use of Artificial Intelligence Tools policy governing AI use in K-12 education across the state.

Pending AI Legislation

Preventing Algorithmic Discrimination Act (HB 1331 / SB 936)

The most significant pending AI bill in Maryland is the Preventing Algorithmic Discrimination Act, introduced as both HB 1331 and its Senate companion SB 936.

Developer Obligations:

Developers of high-risk AI systems must use reasonable care to protect consumers from known and reasonably foreseeable risks of algorithmic discrimination.

Deployer Requirements:

By January 1, 2027, deployers must:

• Create risk management policies for AI systems
• Conduct annual impact assessments for automated decision tools
• Notify consumers when a high-risk AI system is used to make consequential decisions about them
• Provide robust disclosure about how and why the AI system is used

Consumer Rights:

The bill gives consumers the right to correct incorrect personal data used in AI decisions and the right to appeal adverse AI-driven decisions.

Definition of Algorithmic Discrimination:

The bill defines algorithmic discrimination as differential treatment based on protected characteristics. Privacy advocates have noted that the original definition was missing sexual orientation and gender identity, which are covered by the Maryland Online Data Privacy Act.

Industry Opposition:

Business groups have opposed the bill, arguing that mandatory assessments are time-consuming and expensive for the software development industry.

AI Working Group

The Maryland Legislature passed an AI working group bill after incorporating civil society feedback. This workgroup is tasked with drafting recommendations to protect consumers from AI-related harms in areas such as employment, housing, and insurance.

Federal AI Policy Impact on Maryland

TAKE IT DOWN Act

The federal TAKE IT DOWN Act (P.L. 119-12) complements Maryland's SB 360 by providing federal criminal penalties for nonconsensual intimate deepfakes. While Maryland's law provides both criminal penalties and civil remedies at the state level, the federal law creates an additional layer of enforcement and requires platforms to remove reported content within 48 hours.

Federal Preemption Risks

President Trump's Executive Order 14365 (December 2025) poses potential challenges to Maryland's ambitious AI regulatory agenda. The order directs the DOJ to identify state AI laws that could be challenged on preemption grounds. Maryland's Preventing Algorithmic Discrimination Act, if enacted, could face federal scrutiny as a state-level regulation of AI development and deployment.

However, Maryland's existing laws, particularly those governing state government operations (SB 818) and criminal conduct (SB 360), operate in areas traditionally reserved to state authority and are less vulnerable to preemption challenges.

NIST Alignment

Maryland's AI Governance Act explicitly references federal AI standards. The Department of Information Technology's Responsible AI Policy Implementation Guidance aligns with the NIST AI Risk Management Framework, positioning Maryland's approach as complementary to, rather than conflicting with, federal standards.

Looking Ahead

Maryland is positioned to become one of the leading states in AI regulation. The Preventing Algorithmic Discrimination Act would, if enacted, place Maryland alongside Colorado and Illinois in requiring comprehensive risk assessments and anti-discrimination protections for AI systems.

The state's AI Advisory Commission continues to develop recommendations, and the legislative working group on AI consumer protection is expected to inform 2026 session bills. With strong executive branch support through Governor Moore's executive order and AI Subcabinet, Maryland's regulatory infrastructure is more developed than most states.

More Maryland Laws

• Maryland Recording Laws
• Maryland Surveillance Camera Laws
• Maryland Data Privacy Laws
• Maryland Sexting Laws
• Maryland Background Check Laws
• Maryland Whistleblower Laws
• All AI Laws by State

This article is for informational purposes only and does not constitute legal advice. AI regulation is evolving rapidly, and new legislation may be enacted after this article was last reviewed. Consult a licensed Maryland attorney for advice about your specific situation. Last reviewed: March 2026.