Automated decision tool
System that makes or significantly influences consequential decisions.
How the laws define this
Both sources agree that an automated decision tool centers on a system designed to either directly make consequential decisions or heavily steer them. The key point of divergence is whether the tool must explicitly rely on artificial intelligence and how its target context is defined. The regulation titled Insurance; use of artificial intelligence in making certain decisions regarding coverage; prohibit requires the system or service to leverage artificial intelligence, capturing tools specifically designed, marketed, or modified to make decisions or act as a primary controlling factor. By contrast, Arkansas HB 1958 — Public Entity AI Policy Requirements (Act 848) does not explicitly mandate artificial intelligence, focusing instead on systems that significantly influence or determine government actions impacting citizens. Furthermore, Arkansas HB 1958 explicitly defines consequential decisions as those materially affecting individual rights, opportunities, or service access, whereas the insurance definition expands coverage to services and incorporates criteria based on how a tool is marketed or modified.
Synthesised from the 2 statutory definitions below. Each one is quoted in full, with its source.
How jurisdictions differ
What is distinctive in each definition, binding law in force first.
| Jurisdiction | Instrument | Status | What is distinctive |
|---|---|---|---|
| Arkansas, United States | Arkansas HB 1958 — Public Entity AI Policy Requirements (Act 848) | In Force | This definition specifies that consequential decisions materially affect an individual's rights, opportunities, or access to services, and targets systems whose outputs directly determine or heavily sway government actions impacting citizens. |
| Georgia, United States | Georgia HB 887 - Insurance use of artificial intelligence in coverage decisions | Withdrawn | This definition requires the system or service to leverage artificial intelligence and be specifically designed, marketed, or modified to make or primarily control consequential decisions. |
What it triggers
- In Arkansas, public entities must establish written policies governing artificial intelligence use, triggering heightened policy scrutiny.source
- Under Georgia HB 887, healthcare providers, insurers, and public assistance programs would have been prohibited from relying solely on an automated decision tool to make coverage or benefits decisions without human review.source
Definitions (2)
An automated decision tool is defined as a system designed to make or significantly influence consequential decisions—those that materially affect an individual's rights, opportunities, or access to services. The definition targets systems whose outputs directly determine or heavily sway government actions impacting citizens, triggering heightened policy scrutiny under the Act.
An automated decision tool is defined as a system or service that leverages artificial intelligence and has been specifically designed, marketed, or modified to either make consequential decisions or serve as a primary controlling factor in such decisions.
Not to be confused with
Automated decision-making system refers more broadly to systems that process data to make predictions, recommendations, or decisions, while automated decision tool emphasizes making or significantly influencing consequential decisions.
Questions and answers
What policies must Arkansas public entities create for automated decision tools?
Arkansas HB 1958 requires all state and local public entities to establish written policies governing artificial intelligence use. This applies to automated decision tools that make or significantly influence consequential decisions.
Does Georgia law ban sole reliance on AI for insurance decisions?
Georgia HB 887, which was withdrawn, would have prohibited healthcare providers, insurers, and public assistance programs from relying solely on automated decision tools for coverage or benefits decisions without human review.
How do automated decision tools differ from automated decision-making systems?
Automated decision tools focus on systems that make or significantly influence consequential decisions, whereas automated decision-making systems more generally process data for predictions, recommendations, or decisions.
Related Terms
Automated Decision‑Making Systems
Systems that make or assist in making decisions using AI....
Automated decision-making system
Systems that process data to make predictions, recommendations, or decisions....
automated decision‑making
Decisions where algorithmic outputs materially inform or determine outcomes....
Augmented critical decision process
Process using an automated decision system for critical decisions....
Automated decisions
Decisions produced by algorithms without direct human involvement....