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SB2995 aims to regulate the use of artificial intelligence in consumer interactions by requiring businesses to disclose when AI is used. It mandates that consumers be informed they are not engaging with a human and provides options for further information when AI is used to sell goods or services. This legislation seeks to protect consumers from misleading AI interactions.
Key Provisions
Prohibits misleading AI communications that imply human interaction without disclosure.
Requires clear notification when AI is used to sell goods or services.
Mandates an option for consumers to communicate with a human during business hours.
Classifies violations as unlawful practices under the Consumer Fraud Act.
Latest Legislative Action
Rule 3-9(a) / Re-referred to Assignments
Bill Sponsors
Name
Role
District
David KoehlerD
Sponsor
SD-046
Rachel VenturaD
Sponsor
SD-043
Compliance Checklist
Notify consumers when AI is used in communications. Who: Businesses using AI for consumer interactions. Penalty: Classified as an unlawful practice.
Provide an option for consumers to communicate with a human. Who: Businesses using AI in trade and commerce. Penalty: Classified as an unlawful practice.
SB2995 amends the Consumer Fraud and Deceptive Business Practices Act to include specific provisions regarding the use of artificial intelligence in trade and commerce. The bill prohibits businesses from using AI to communicate with consumers in a way that could mislead them into thinking they are interacting with a human, unless a clear notification is provided. Additionally, businesses must inform consumers when AI is used to sell goods or services and must offer an option for consumers to request more information about the AI's use. Importantly, businesses must also allow consumers to communicate with a human during normal business hours, ensuring that consumers have access to human representatives if they choose. Violations of these provisions are classified as unlawful practices under the Act, which could lead to penalties. This legislation aligns with similar efforts in other states to enhance transparency and accountability in AI usage.
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