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.
subd. 1 For the purpose of this section, "artificial intelligenceArtificial intelligence"artificial intelligence" means a machine-based system that, for an explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, and recommendations, that have the ability to influence physical or virtual environments.Minn. Stat. § 325M.40, subd. 1" means a machine-based system that, for an explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, and recommendations, that have the ability to influence physical or virtual environments.
subd. 2 1 A person engages in an unfair or deceptive trade practice when, in the course of business, the person fails to disclose that an individual is communicating or interacting with artificial intelligenceArtificial intelligence"artificial intelligence" means a machine-based system that, for an explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, and recommendations, that have the ability to influence physical or virtual environments.Minn. Stat. § 325M.40, subd. 1 that engages in a textual or aural conversation.
subd. 3 2 A person engages in an unfair or deceptive trade practice when, in the course of business, the person misleads or deceives a reasonable individual to believe the individual is engaging with an actual human and: (1) the individual is not notified in a clear and conspicuous manner that the individual is communicating with artificial intelligenceArtificial intelligence"artificial intelligence" means a machine-based system that, for an explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, and recommendations, that have the ability to influence physical or virtual environments.Minn. Stat. § 325M.40, subd. 1; or (2) the individual reasonably believes the individual is engaging with a human.
subd. 4 3 A person who uses artificial intelligenceArtificial intelligence"artificial intelligence" means a machine-based system that, for an explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, and recommendations, that have the ability to influence physical or virtual environments.Minn. Stat. § 325M.40, subd. 1 in the course of business must provide individuals with an option to communicate or interact with an actual human instead of artificial intelligenceArtificial intelligence"artificial intelligence" means a machine-based system that, for an explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, and recommendations, that have the ability to influence physical or virtual environments.Minn. Stat. § 325M.40, subd. 1, including but not limited to through electronic communication, an audio or video call, or an in-person meeting.
subd. 5(a) An individual injured by a violation of this section may bring a civil action for damages, statutory damages not to exceed $1,000, injunctive relief, and costs and reasonable attorney fees.
subd. 5(b) The attorney general may enforce this section under section 8.31. In an action brought under this paragraph, a person is liable for a civil penalty not to exceed $5,000,000.
Section 325M.40 establishes a comprehensive AI disclosure regime applicable to any person deploying conversational AI in business. The section creates three layered obligations: a baseline affirmative duty to disclose that an individual is communicating with AI, a prohibition on actively misleading consumers into believing they are interacting with a human, and a requirement to offer an opt-out path to a real human. These duties are framed as unfair or deceptive trade practices, integrating enforcement into Minnesota's existing consumer-protection infrastructure.
The definition of artificial intelligence is broad — any machine-based system that infers outputs from inputs — and is not limited to chatbots or companion AI. The disclosure obligation in subdivision 2 is unconditional whenever AI engages in textual or aural conversation, while subdivision 3 adds a deception-specific prohibition triggered when a person affirmatively misleads a reasonable individual. The opt-out right in subdivision 4 is notable for requiring access to a human through any channel the business uses, including in-person meetings.