Alabama House Bill HB325

Alabama 2026 Regular Session

• Introduced: 1/22/26
• Refer: 1/22/26

Caption

AI chatbots; unfair or deceptive trade practice for failing to notify consumer about AI chatbot; private right of action and enforcement provided for

Summary

HB325 would regulate the use of AI chatbots in commercial transactions with consumers. If a business or other person uses a generative AI chatbot in a text or voice interaction where a consumer could reasonably think they are speaking with a human, the bill requires the business to disclose at the start of the interaction—and at regular intervals during continuing interactions—that the consumer is communicating with a computer, not a person. The bill defines key terms such as artificial intelligence, chatbot, consumer, and generative artificial intelligence by reference to existing Alabama law or by specific definition in the bill. The bill also treats a failure to provide the required disclosure as an unfair or deceptive trade practice. It creates a private right of action allowing affected consumers to sue for injunctive relief, actual damages, and statutory damages of up to $1,000 per violation, with class action damages capped at $10 million. In addition, it authorizes the Attorney General to enforce the act by seeking injunctions, civil penalties of up to $5 million, and other court-ordered remedies. The act would take effect on October 1, 2026.

Impact

HB325 would add a new consumer-protection requirement to Alabama law governing commercial interactions involving AI chatbots. It would effectively expand the state’s unfair or deceptive trade practice framework to cover undisclosed chatbot use, creating both public enforcement authority for the Attorney General and a private enforcement mechanism for consumers. Businesses using AI-driven customer service, sales, or other commercial messaging tools would need to implement clear disclosure practices to avoid liability.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes, the apparent sentiment is supportive of consumer transparency and disclosure in AI-assisted commerce. The bill’s sponsors and caption suggest a policy goal of preventing consumers from being misled into believing they are interacting with a human representative. No contrary testimony or recorded opposition is available in the provided materials, so there is no documented committee-level controversy in the record supplied.

Contention

The main points of potential contention are likely to be the scope of the disclosure requirement, the definition of when a consumer could “reasonably believe” they are speaking with a human, and the size of the remedies available. Businesses that rely on AI chatbots may view the rule as burdensome or difficult to administer, especially for continuous or multi-step interactions requiring repeated notices. Consumer advocates, by contrast, would likely support the bill’s transparency mandate and enforcement tools, including the private right of action and substantial civil penalties.