Minnesota Bills Targeting Automated Decision Systems and Research Data Privacy Defeated -- Would Have Imposed Sweeping New Restrictions on Insights Operations - Articles

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Minnesota Bills Targeting Automated Decision Systems and Research Data Privacy Defeated -- Would Have Imposed Sweeping New Restrictions on Insights Operations

Minnesota Bills Targeting Automated Decision Systems and Research Data Privacy Defeated -- Would Have Imposed Sweeping New Restrictions on Insights Operations

A pair of bills in Minnesota that would have restricted the use of AI-like automated decision systems regarding research subjects who receive incentives, and added a new layer of data privacy restrictions, have been defeated. H.F. 4445 and S.F. 4689 would have been enforced via private litigation, creating significant legal risks for organizations conducting market research, analytics and insights in Minnesota.

The bills died upon the conclusion of the Minnesota legislative session on May 18, 2026.

“This legislation would have dramatically limited the use of AI-enabled and automated systems commonly used in market research, including recruiting, performance evaluation, incentive setting, and panel management,” commented Howard Fienberg, Senior VP Advocacy for the Insights Association.

“The bills also would have layered extensive new restrictions and compliance obligations on research data, extending well beyond existing Minnesota privacy law, applying even to organizations with only a small number of Minnesota research participants.”

As the Insights Association reported to members on April 14, the legislation was primarily intended to regulate employers and workers. However, because the bills broadly defined a “worker” to include independent contractors, they would have directly affected research subjects who receive incentives for participating in insights studies.

Under the proposed legislation, automated decision systems would have faced restrictions or prohibitions when used to determine incentive amounts, schedule or space out research opportunities, evaluate research subject performance, recruit individuals for studies, include or exclude participants from research projects, or remove research subjects from studies or panels. The bills also would have restricted the use of such systems to infer common demographic characteristics and would have imposed a range of additional compliance requirements.

Notably, the legislation would have required a designated internal reviewer to investigate and independently corroborate decisions affecting individual research participants, creating significant operational burdens for insights organizations.

“IA continues to believe the insights industry was never the intended target of this legislation,” Fienberg added. “We will continue engaging with Minnesota policymakers to ensure that market research participants and insights activities are clearly excluded from any future versions of these proposals.”

The Insights Association also took time to thank the Minnesota insights professionals who contacted their legislators through the association’s new Action Center to raise concerns about H.F. 4445 and S.F. 4689 and their unintended consequences for the research and insights industry.

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