WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(1) ARTIFICIAL INTELLIGENCEArtificial intelligenceARTIFICIAL INTELLIGENCE or AI. The term as defined in Section 17-5-16.1, Code of Alabama 1975.Section 1(1) or AI. The term as defined in Section 17-5-16.1, Code of Alabama 1975.
(2) CHATBOTChatbotCHATBOT. A generative artificial intelligence program with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.Section 1(2). A generative artificial intelligenceGenerative artificial intelligenceGENERATIVE ARTIFICIAL INTELLIGENCE. A class of AI models that emulate the structure and characteristics of input data to generate derived synthetic content, including, but not limited to, images, video, audio, text, and other digital content.Section 1(4) program with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.
(3) CONSUMERConsumerCONSUMER. The term as defined in Section 7-1-201, Code of Alabama 1975.Section 1(3). The term as defined in Section 7-1-201, Code of Alabama 1975.
(4) GENERATIVE ARTIFICIAL INTELLIGENCEGenerative artificial intelligenceGENERATIVE ARTIFICIAL INTELLIGENCE. A class of AI models that emulate the structure and characteristics of input data to generate derived synthetic content, including, but not limited to, images, video, audio, text, and other digital content.Section 1(4). A class of AI models that emulate the structure and characteristics of input data to generate derived synthetic content, including, but not limited to, images, video, audio, text, and other digital content.
Section 1 establishes four defined terms for the act. Artificial intelligence and consumer are defined by cross-reference to existing Alabama code provisions. Chatbot is defined as a generative AI program with a conversational interface through text, audio, or visual medium. Generative artificial intelligence is defined as a class of AI models that generate derived synthetic content. Notably, the chatbot definition is anchored to generative AI — non-generative automated phone trees or scripted bots would likely fall outside scope.
(a)(1)–(2) 1 A person that engages in a commercial transaction or trade practice with a consumerConsumerCONSUMER. The term as defined in Section 7-1-201, Code of Alabama 1975.Section 1(3) through an AI chatbotChatbotCHATBOT. A generative artificial intelligence program with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.Section 1(2), in textual or aural conversation, where the consumerConsumerCONSUMER. The term as defined in Section 7-1-201, Code of Alabama 1975.Section 1(3) may reasonably believe the consumerConsumerCONSUMER. The term as defined in Section 7-1-201, Code of Alabama 1975.Section 1(3) is engaging with a human, shall notify the consumerConsumerCONSUMER. The term as defined in Section 7-1-201, Code of Alabama 1975.Section 1(3) verbally or in writing: (1) At the beginning of each interaction that the consumerConsumerCONSUMER. The term as defined in Section 7-1-201, Code of Alabama 1975.Section 1(3) is communicating with a computer, not a human; and (2) At a regular interval for continuing interactions that the consumerConsumerCONSUMER. The term as defined in Section 7-1-201, Code of Alabama 1975.Section 1(3) is communicating with computer, not a human.
(b) Failure to comply with the provisions of this act is an unfair or deceptive trade practice.
Section 2 imposes the bill's core obligation: any person engaging in a commercial transaction or trade practice with a consumer through an AI chatbot must notify the consumer that they are communicating with a computer, not a human. The disclosure trigger is a reasonable-belief standard — the obligation applies only where the consumer may reasonably believe the consumer is engaging with a human. Notification must occur both at the beginning of each interaction and at regular intervals during continuing interactions.
Subsection (b) designates failure to comply as an unfair or deceptive trade practice, which ties the violation to Alabama's existing consumer protection enforcement framework and provides the foundation for the private right of action and AG enforcement in Sections 3 and 4.
(a)(1)–(2) 2 A consumerConsumerCONSUMER. The term as defined in Section 7-1-201, Code of Alabama 1975.Section 1(3) who is subjected to a commercial transaction that violates Section 2(a) of this act may bring a civil action to recover the following relief: (1) Injunctive relief. (2) Damages in an amount equal to the sum of any actual damages, as well as statutory damages not to exceed one thousand dollars ($1,000) per violation.
(b) 2 In the case of a class action lawsuit, the court may not award damages in excess of ten million dollars ($10,000,000).
Section 3 creates a private right of action for any consumer subjected to a commercial transaction that violates Section 2(a). Available remedies include injunctive relief plus damages equal to actual damages and statutory damages up to $1,000 per violation. Class action damages are capped at $10,000,000. No attorney's fees provision is included.
(1)–(3) 3 Whenever it appears to the Attorney General, either upon complaint or otherwise, that a person has violated or is about to violate Section 2(a) of this act, the Attorney General may bring an action against a person to: (1) Enjoin the person from continuing the violation; (2) Seek civil penalties of up to five million dollars ($5,000,000) for a violation under this act; and (3) Seek any other remedies as the court may deem appropriate.
Section 4 authorizes the Attorney General to bring an enforcement action — upon complaint or otherwise — against any person who has violated or is about to violate the chatbot disclosure requirement. The AG may seek injunctive relief, civil penalties up to $5,000,000 per violation, and any other remedies the court deems appropriate. The 'about to violate' language authorizes preventive enforcement before an actual violation occurs.
This act shall become effective on October 1, 2026.
Section 5 sets the effective date at October 1, 2026.