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AI Summary
The Professional AI Oversight Act mandates licensees to disclose AI use, notifying the person of the AI's specific purpose before a written exchange and verbally at the start of an oral exchange.
Business Impact
If you use AI in customer interactions in Illinois, you must disclose its use or face penalties up to $2,500 per violation starting January 1, 2027.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
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What This Means
The Professional AI Oversight Act enhances transparency by requiring licensees to prominently disclose AI use, including its specific purpose, verbally at the start of oral interactions and in writing before written exchanges, with enforcement by the Department of Financial and Professional Regulation.
Key Provisions
- Licensees must provide prominently clear and conspicuous disclosure of AI interactions, notifying the person of the specific purpose of the AI's use verbally at the start of an oral exchange and in writing before a written exchange.
- Verbal disclosure is required at the start of an oral exchange and written disclosure before a written exchange.
- Violators face civil penalties not to exceed $2,500 per violation.
- Penalties assessed by the Department based on the degree of harm and circumstances.
- The Department of Financial and Professional Regulation has rulemaking and enforcement authority.
- The Department may investigate any actual, alleged, or suspected violation of the Act.
- The Department's order can be filed and executed as a court judgment, and civil penalties must be paid within 60 days after issuance.
- The Act amends the Consumer Fraud and Deceptive Business Practices Act to require AI interaction disclosure in trade and commerce if asked or prompted by the person.
- Effective date is January 1, 2027.
Latest Legislative Action
Rule 3-9(a) / Re-referred to Assignments
Bill Sponsors
| Name | Role |
|---|---|
| Steve Stadelman | Primary |
Compliance Checklist
Disclose AI usage to consumers at the start of interactions.
Who: Any business using AI in customer interactions.
Deadline: By January 1, 2027.
Penalty: Up to $2,500 per violation.
Who: Any business using AI in customer interactions.
Deadline: By January 1, 2027.
Penalty: Up to $2,500 per violation.
Provide written notice of AI usage before written exchanges.
Who: Any business using AI in customer interactions.
Deadline: By January 1, 2027.
Penalty: Up to $2,500 per violation.
Who: Any business using AI in customer interactions.
Deadline: By January 1, 2027.
Penalty: Up to $2,500 per violation.
Related & Companion Bills
Full Legal Analysis
The Professional AI Oversight Act requires licensees using AI in services to provide prominently clear and conspicuous disclosure of AI involvement, notifying the person of the AI's specific purpose verbally at the start of an oral exchange and in writing before a written exchange. The effective date is January 1, 2027. The Department may investigate any actual, alleged, or suspected violation of the Act. The Department's order constitutes a judgment and can be executed like a court judgment, and civil penalties must be paid within 60 days after the issuance of an order. Penalties are assessed by the Department based on the degree of harm and circumstances of the violation, not to exceed $2,500 per violation. The Act also amends the Consumer Fraud and Deceptive Business Practices Act to require AI interaction disclosure in trade and commerce if asked or prompted by the person.
Official Source
Official Bill Text
View SB 3601 on official legislature website →
Related Topics
Affected Industries
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