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) This act shall be known and may be cited as the "Artificial Intelligence FraudArtificial intelligence fraud"Artificial intelligence fraud" means the use of artificial intelligence systems to deceive, impersonate or obtain money, property, data or other assets from another person.Section 1(2)(a) and Accountability Act."
(2)(a)–(b) "Artificial intelligence fraudArtificial intelligence fraud"Artificial intelligence fraud" means the use of artificial intelligence systems to deceive, impersonate or obtain money, property, data or other assets from another person.Section 1(2)(a)" means the use of artificial intelligence systemsArtificial intelligence systems"Artificial intelligence systems" includes, but is not limited to, deepfakes, voice cloning, generative text or image tools, chatbots or automated decision-making systems.Section 1(2)(b) to deceive, impersonate or obtain money, property, data or other assets from another person; and (b) "Artificial intelligence systemsArtificial intelligence systems"Artificial intelligence systems" includes, but is not limited to, deepfakes, voice cloning, generative text or image tools, chatbots or automated decision-making systems.Section 1(2)(b)" includes, but is not limited to, deepfakes, voice cloning, generative text or image tools, chatbots or automated decision-making systems.
(3)(a) 1 Any person or entity injured or damaged by artificial intelligence fraudArtificial intelligence fraud"Artificial intelligence fraud" means the use of artificial intelligence systems to deceive, impersonate or obtain money, property, data or other assets from another person.Section 1(2)(a) as defined herein may bring a cause of action in the court having jurisdiction in the county in which the violator resides, has his or her place of business, or where the act or practice prohibited in this section allegedly occurred, to seek compensatory damages or statutory damages in the amount of Five Hundred Dollars ($500.00) per violation, whichever is greater. Such injured person or entity shall also be entitled to recover reasonable attorney's fees and other litigation costs reasonably incurred.
(3)(b) 1 In any action brought under this section, if the court finds clear and convincing evidence that a person or entity knowingly and willfully engaged in a transaction or trade practice with a consumer in which the consumer was or is harmed by artificial intelligence fraudArtificial intelligence fraud"Artificial intelligence fraud" means the use of artificial intelligence systems to deceive, impersonate or obtain money, property, data or other assets from another person.Section 1(2)(a), the injured party may recover, at the court's discretion, punitive damages under Section 11-1-65.
(3)(c) 1 Upon a violation of this section, any person or entity affected by such violation may bring a cause of action against violators to restrain by temporary or permanent injunction the use of such fraudulent method, act or practice involving artificial intelligence fraudArtificial intelligence fraud"Artificial intelligence fraud" means the use of artificial intelligence systems to deceive, impersonate or obtain money, property, data or other assets from another person.Section 1(2)(a). The action shall be brought in the chancery or county court of the county in which such person resides or has his or her principal place of business, or, with the consent of the parties, may be brought in the chancery court of the county in which the State Capitol is located. Courts are authorized to issue temporary or permanent injunctions to restrain and prevent violations of this chapter, and such injunctions shall be issued without bond.
(4) 2 Any person or entity which knowingly develops, deploys or facilitates artificial intelligence systemsArtificial intelligence systems"Artificial intelligence systems" includes, but is not limited to, deepfakes, voice cloning, generative text or image tools, chatbots or automated decision-making systems.Section 1(2)(b) for the purpose of fraudulent behavior may be held jointly and severally liable for resulting damages.
Section 1 establishes the entirety of the Artificial Intelligence Fraud and Accountability Act. It defines artificial intelligence fraud as the use of AI systems to deceive, impersonate, or obtain money, property, data, or other assets, and defines artificial intelligence systems broadly to include deepfakes, voice cloning, generative tools, chatbots, and automated decision-making systems.
The section creates a private right of action for injured persons or entities, providing compensatory or statutory damages ($500 per violation, whichever is greater), attorney's fees, punitive damages upon a showing of knowing and willful conduct, and injunctive relief. It also establishes joint and several liability for persons who knowingly develop, deploy, or facilitate AI systems for fraudulent purposes. The bill creates no affirmative pre-deployment compliance obligations — it is a tort-liability framework triggered by fraudulent conduct.
This act shall take effect and be in force from and after July 1, 2026.
Section 2 sets the effective date for the act at July 1, 2026.