Imposes liability for damages caused by a chatbot impersonating certain licensed professionals.
Summary
This bill would add a new section to New York’s General Business Law creating liability rules for chatbot operators that allow an AI system to give substantive advice, information, or take actions that would be unlawful if performed by a human in certain licensed professions. The bill focuses on chatbots that could impersonate or function like professionals whose practice is regulated under specified Education Law articles, as well as chatbots that would engage in the unauthorized practice of law under the Judiciary Law. It defines key terms such as “artificial intelligence system,” “chatbot,” and “proprietor,” and excludes third-party developers who merely license chatbot technology to a business or other operator.
The bill also requires clear and conspicuous notice to users that they are interacting with an AI chatbot, with the notice displayed in the same language as the chatbot and in a font size comparable to the largest text on the website. It further states that a proprietor cannot avoid liability simply by telling users the system is non-human. The law would take effect 90 days after enactment.
Impact
If enacted, the bill would expand state consumer-protection-style liability for AI chatbot operators and create a private right of action for actual damages, and for willful violations, costs and reasonable attorneys’ fees and disbursements. It would affect businesses, institutions, government entities, and other proprietors that deploy chatbots in New York, especially those using AI systems in contexts where users might rely on the chatbot for professional advice or services. The bill would also reinforce existing professional-licensing and unauthorized-practice restrictions by applying them to chatbot-generated conduct, while imposing a new disclosure obligation on chatbot users.
Sentiment
The available record shows no committee transcript or vote history, so there is no documented formal debate or recorded sentiment from legislative proceedings. Based on the bill’s structure, it appears aimed at consumer protection, professional integrity, and transparency in AI use, suggesting a generally precautionary and regulatory approach toward chatbot deployment. Because no votes or hearing remarks are provided, support or opposition cannot be reliably inferred from the legislative record included here.
Contention
The main points of contention likely concern whether chatbot operators should be held liable for outputs that resemble professional advice, how broadly the bill reaches across licensed professions, and whether the notice requirement is sufficient to protect consumers. Another likely issue is the bill’s treatment of proprietors versus third-party developers, since liability is placed on the entity that owns, operates, or deploys the chatbot rather than the technology vendor. Businesses using AI tools may also object to the potential exposure to damages and attorneys’ fees, while consumer advocates and professional regulators would likely support the restrictions as a safeguard against misleading or unauthorized professional impersonation.
A BILL to amend the Code of Virginia by adding a section numbered 54.1-111.1, relating to professions and occupations; impersonation of certain licensed professionals by chatbot; notice; civil liability.