IL SB3601: PROFESSIONAL AI OVERSIGHT ACT Verified

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What This Means

The Professional AI Oversight Act aims to enhance transparency in interactions involving artificial intelligence. It requires licensees under the Department's jurisdiction to disclose AI use, including its specific purpose, at the start of oral exchanges or before written exchanges when a person is paying for the service. The 'if asked or prompted' condition is an amendment to the Consumer Fraud and Deceptive Business Practices Act. The Department may investigate any actual, alleged, or suspected violation of the Act. The Department's order can be filed and executed like a court judgment. Penalties are determined by the Department based on the degree of harm and the circumstances of the violation, and must be paid within 60 days after the issuance of an order by the Department. The Department of Financial and Professional Regulation has rulemaking authority.

Key Provisions

• Licensees under the Department's jurisdiction 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, determined by the degree of harm and circumstances, and must be paid within 60 days after the issuance of an order by the Department.
• 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 in trade and commerce.
• Effective date is January 1, 2027.
• The Department may investigate any actual, alleged, or suspected violation of the Act.

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