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Imposes liability for misleading, incorrect, contradictory or harmful information to a user by a chatbot that results in financial loss or other demonstrable harm.
In one paragraph
New York's A 10494 would have added General Business Law § 390-f barring a chatbot proprietor (an entity with more than twenty employees) whose chatbot serves as an alternative to a human representative from disclaiming liability when the chatbot gives “materially misleading, incorrect, contradictory or harmful information” causing financial loss or other demonstrable harm, unless it cured the harm within thirty days of notice. Clear notice that users face an AI chatbot was also required. Referred to Consumer Affairs and Protection May 29, 2024; it died at the end of the 2023-2024 session.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill died at the end of the 2023-2024 session.
Key provisions
- “Chatbot”: an AI system, software program or technological application that simulates human-like conversation through text, voice or both to provide information and services
- “Proprietor”: a person, business or other entity with more than twenty employees that owns, operates or deploys a chatbot used to interact with users; third-party developers that license the technology are excluded
- No liability if the proprietor corrected the information and substantially or completely cured the harm within thirty days of notice
- Proprietors had to ensure the chatbot accurately provides information aligned with their policies, product details, disclosures and terms of service, and could not disclaim liability merely by telling consumers the chatbot is non-human
- Clear, conspicuous and explicit notice of interacting with an AI chatbot rather than a human, in the site's language and no smaller than the largest font of other website text
- Would have taken effect on the ninetieth day after becoming law; no penalties or enforcement mechanism stated; referred May 29, 2024 with no further action
Latest legislative action
May 29, 2024. referred to consumer affairs and protection
Sponsors (showing 5 of 6)
| Name | Role |
|---|---|
| PICHARDO | Primary |
| Rules Committee | Primary |
| Sarah Clark D | Primary |
| Albert A. Stirpe | Cosponsor |
| Paula Kay D | Cosponsor |
Topics and industries
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Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error