The Professional AI Oversight Act mandates disclosure at the start of oral or before written exchanges when individuals pay for AI services in regulated occupations, effective January 1, 2027.
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What This Means
The Professional AI Oversight Act aims to enhance transparency in interactions involving artificial intelligence. It requires service providers in regulated occupations to disclose AI use at the start of oral exchanges or before written exchanges, and if asked or prompted.
Key Provisions
- Licensees must disclose AI interactions verbally at the start of an oral exchange or in writing before a written exchange when the client is paying for the service.
- Disclosure must include the specific purpose of the AI's use.
- Civil penalties for violations can reach up to $2,500.
- The Department's order constitutes a judgment and may be filed and executed like a court judgment.
- The Department of Financial and Professional Regulation has rulemaking authority.
- The Act amends the Consumer Fraud and Deceptive Business Practices Act to require disclosure if asked or prompted.
- Effective date is January 1, 2027.
Latest Legislative Action
Rule 2-10 Committee Deadline Established As April 24, 2026
Compliance Checklist
Who: Licensees providing services.
Deadline: By January 1, 2027.
Penalty: Up to $2,500 per violation.
Who: Licensees providing services.
Deadline: By January 1, 2027.
Penalty: Up to $2,500 per violation.
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