public schools; universities; AI policies

HB 4040 requires Arizona public school districts, charter schools, and state universities to adopt AI policies by July 1, 2027, directly affecting students, teachers, and administrators. Schools must implement detection systems (with human review, appeals, and bias mitigation) or modify assignments to prevent unauthorized AI use in coursework, while defining clear guidelines for authorized/unauthorized AI use. All staff must receive training on AI policy limitations and responsible integration, and institutions must submit annual reports to education departments by October 15. The bill explicitly excludes basic tools like spellcheck from its definition of "artificial intelligence" and mandates compliance with student privacy laws.