Laws & Statutes › AL › AL-HB-325
HB-325
AL · State · USA
AL
USA
● Pending
Proposed Effective Date
2026-10-01
Alabama HB 325 — Relating to AI chatbots; to prohibit persons from engaging with consumers in commercial transactions through AI chatbots without notifying the consumer that the consumer is communicating with a computer; to make this violation an unfair or deceptive trade practice; to provide a private right of action for consumers for violations; and to authorize the Attorney General to bring suit to enforce this act.
Requires any person engaging in a commercial transaction with a consumer through an AI chatbot to notify the consumer that they are communicating with a computer, not a human, when the consumer may reasonably believe they are engaging with a human. Notification must be given at the beginning of each interaction and at regular intervals during continuing interactions. Failure to comply is deemed an unfair or deceptive trade practice. Consumers have a private right of action for injunctive relief, actual damages, and statutory damages up to $1,000 per violation (class action cap of $10 million). The Attorney General may seek injunctive relief and civil penalties up to $5 million.
Passage Likelihood
Low
Chamber No passage
Committee No action
Majority party (No data)
Bipartisan No
Prior session None
Legislative History
2026-01-22 committee referral Read for the first time and referred to the House Committee on Judiciary
2026-01-22 other Pending House Judiciary
Mapped Requirements
T-01 AI Identity Disclosure
Official Sources
Full Text ↗
Entry Last Reviewed
2026-03-27
AI generated
Summary

Requires any person engaging in a commercial transaction with a consumer through an AI chatbot to notify the consumer that they are communicating with a computer, not a human, when the consumer may reasonably believe they are engaging with a human. Notification must be given at the beginning of each interaction and at regular intervals during continuing interactions. Failure to comply is deemed an unfair or deceptive trade practice. Consumers have a private right of action for injunctive relief, actual damages, and statutory damages up to $1,000 per violation (class action cap of $10 million). The Attorney General may seek injunctive relief and civil penalties up to $5 million.

Enforcement & Penalties
Enforcement Authority
Dual enforcement. The Attorney General may bring an action upon complaint or otherwise whenever it appears that a person has violated or is about to violate the act. Consumers who are subjected to a commercial transaction that violates the act may bring a private civil action. No cure period or safe harbor is specified.
Penalties
Private action: injunctive relief plus damages equal to the sum of actual damages and statutory damages not to exceed $1,000 per violation. Statutory damages do not require proof of actual monetary harm. Class action damages capped at $10,000,000. Attorney General action: injunctive relief, civil penalties up to $5,000,000 per violation, and any other remedies the court deems appropriate. No attorney's fees provision.
Who Is Covered
What Is Covered
CHATBOT. 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.
Compliance Obligations 2 obligations · click obligation ID to open requirement page
T-01 AI Identity Disclosure · T-01.1T-01.2 · Deployer · Chatbot
Section 2(a)-(b)
Plain Language
Any person using an AI chatbot to engage consumers in commercial transactions must notify the consumer — verbally or in writing — that they are communicating with a computer, not a human, when the consumer could reasonably believe they are talking to a person. The notice must be provided both at the beginning of each interaction and at regular intervals during continuing interactions. The bill does not define what constitutes a 'regular interval,' leaving that to future interpretation. Failure to comply is classified as an unfair or deceptive trade practice under Alabama law. The disclosure obligation is conditional — it applies only where a consumer 'may reasonably believe' they are engaging with a human.
Statutory Text
(a) A person that engages in a commercial transaction or trade practice with a consumer through an AI chatbot, in textual or aural conversation, where the consumer may reasonably believe the consumer is engaging with a human, shall notify the consumer verbally or in writing: (1) At the beginning of each interaction that the consumer is communicating with a computer, not a human; and (2) At a regular interval for continuing interactions that the consumer is communicating with computer, not a human. (b) Failure to comply with the provisions of this act is an unfair or deceptive trade practice.
Other · Chatbot
Section 2(b)
Plain Language
A violation of the chatbot disclosure requirement is deemed an unfair or deceptive trade practice under Alabama law. This classification provides the legal basis for enforcement remedies but does not impose an independent compliance obligation beyond the disclosure requirement itself.
Statutory Text
(b) Failure to comply with the provisions of this act is an unfair or deceptive trade practice.