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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 S 9381 (2023-2024) would have added General Business Law section 390-f on chatbots. A proprietor with more than twenty employees that uses a chatbot in place of a human representative could not disclaim liability for materially misleading, incorrect, contradictory or harmful information causing financial loss or other demonstrable harm, with no liability if cured within 30 days of notice, and must give clear notice users are talking to an AI chatbot. Referred to Internet and Technology May 14, 2024; it died when the 2023-2024 session ended.
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
- "Proprietor" means any person, business, organization or government entity with more than twenty employees that owns, operates or deploys a chatbot; third-party developers that license the technology are excluded
- Proprietors using a chatbot in place of a human representative may not disclaim liability for materially misleading, incorrect, contradictory or harmful information causing financial loss or other demonstrable harm; no liability if the harm is substantially or completely cured within 30 days of notice
- Proprietors must ensure the chatbot's information is consistent with their formal policies, product details, disclosures and terms of service
- Liability cannot be waived merely by telling consumers they are talking to a non-human chatbot
- Proprietors must give clear, conspicuous, explicit notice of AI interaction in the site's language, no smaller than the largest font on the site
- No penalty, enforcer or private right of action stated; would have taken effect on the ninetieth day after becoming law; Assembly companion A10494
Latest legislative action
May 14, 2024. referred to internet and technology
Sponsors
| Name | Role |
|---|---|
| GIANARIS | Primary |
| Kristen Gonzalez D | Primary |
| Robert Jackson D | Primary |
| Julia Salazar D | Cosponsor |
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