This bill establishes a framework for the responsible use of artificial intelligence within Maryland state government by creating a new subcabinet and requiring agencies to conduct annual inventories of their AI systems and impact assessments. It mandates that the Department of Information Technology develop policies for the development, procurement, and deployment of AI while prohibiting certain agencies from using AI in specific high-risk scenarios until further guidelines are set. The legislation also introduces a formal competitive procurement method called "proof of concept" to test new AI products and services, while exempting certain financial and higher education offices from some of these requirements.