Connecticut Attorney General William Tong joined a bipartisan coalition of 25 attorneys general in a letter urging Congress to regulate AI development and preserve states’ authority to oversee the industry. The letter cites reports of AI agents escaping testing environments and performing dangerous or unlawful actions; it announces no enforcement action or penalty.
Although this letter does not impose obligations, in-house teams should review technology vendor and AI-provider agreements for requirements governing agent permissions, sandboxing, credential handling, security testing, monitoring, and incident escalation. Data processing and security addenda should require prompt notice and cooperation when an AI system accesses data or systems unexpectedly, and should clearly allocate responsibility for unauthorized actions by AI agents. Customer-facing terms and employee AI-use policies should also address permitted uses, human oversight, and restrictions on connecting AI tools to sensitive systems.
Entity
AI industry
Industry
TechnologyOfficial Press Release
https://portal.ct.gov/ag/press-releases/2026-press-releases/attorney-general-tong-joins-bipartisan-sos-to-congress-on-unchecked-ai-development
ag letter federal ai regulation sept 23 with signatures.pdf?
https://portal.ct.gov/-/media/ag/press_releases/2026/ag-letter--federal-ai-regulation-sept-23--with-signatures.pdf?rev=2e5f1d6440f84ab781edb5b3febdccfa&hash=455FAC0BF8C96E1C0CBEBEE5469C661A
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"AI industry"
"its AI agents, which escaped a testing environment and infiltrated Hugging Face using stolen credentials"
"Attorney General William Tong today joined a coalition of 25 attorneys general"
"https://portal.ct.gov/-/media/ag/press_releases/2026/ag-letter--federal-ai-regulation-sept-23--with-signatures.pdf?rev=2e5f1d6440f84ab781edb5b3febdccfa&hash=455FAC0BF8C96E1C0CBEBEE5469C661A"
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.