In one paragraph
New York's S 8874 would add General Business Law § 399-m-1 requiring any person, firm, partnership, association or corporation, or its agent or employee, to disclose its use of AI to influence customer interaction (such as automated customer support, ad targeting, eligibility decisions and AI hiring tools). The disclosure must appear at the point of interaction, be clear and conspicuous in bold type of at least twelve points, and describe the AI's role. Referred to the Internet and Technology Committee January 13, 2026; it has not passed either chamber.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill is pending. If enacted, businesses using AI in customer interactions would have to post a clear AI disclosure at the point of interaction.
Key provisions
- Disclose the use of AI to influence customer interaction; the listed examples (automated customer support, personalized ad targeting, product eligibility decisions, AI-driven hiring tools) are not exhaustive
- Disclosure must appear at the point of interaction (chat window, chatbot, website footer, email), clear and conspicuous, bold, at least twelve-point type
- Must include a plain-English description of the AI's role and, if applicable, how to reach human assistance
- The text states no penalty, enforcing agency, private right of action or exception
- Takes effect on the 120th day after becoming law
Latest legislative action
Jan 13, 2026. REFERRED TO INTERNET AND TECHNOLOGY
Sponsors
| Name | Role | District |
|---|---|---|
| Steven Rhoads R | Sponsor | SD-005 |
Topics and industries
Related topics
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