WHAT THIS BILL REGULATES · 9 REQUIREMENT TYPES
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.
This Chapter shall be known and may be cited as the ChatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) Licensing Act.
Establishes the short title of the Chapter as the Chatbot Licensing Act. Creates no compliance obligation.
(1)–(5) The following definitions apply in this Chapter: (1) ChatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1). – A generative artificial intelligence systemGenerative artificial intelligence systemAny system that uses artificial intelligence, as defined in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law No. 115-232, 132 Stat. 1636 (2018), to generate or substantially modify image, video, audio, multimedia, or text content.G.S. § 114B-2(3) with which users can interact by or through an interface that approximates or simulates conversationConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3) through a text, audio, or visual medium. (2) DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2). – The North Carolina Department of Justice. (3) Generative artificial intelligence systemGenerative artificial intelligence systemAny system that uses artificial intelligence, as defined in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law No. 115-232, 132 Stat. 1636 (2018), to generate or substantially modify image, video, audio, multimedia, or text content.G.S. § 114B-2(3). – Any system that uses artificial intelligence, as defined in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law No. 115-232, 132 Stat. 1636 (2018), to generate or substantially modify image, video, audio, multimedia, or text content. (4) Health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4). – The term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4). 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records. (5) LicenseeLicenseeA person holding a license issued and in effect under this Chapter.G.S. § 114B-2(5). – A person holding a license issued and in effect under this Chapter.
Defines key terms used throughout Chapter 114B, including Chatbot, Department, Generative artificial intelligence system, Health information, and Licensee. The definition of Health information is notably expansive, covering not only traditional medical data but also gender-affirming care information, reproductive or sexual health information, biometric and genetic data, and inferred health data. No compliance obligation is imposed by this section itself.
(a) 1 No person shall operate or distribute a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) that deals substantially with health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4) without first obtaining a health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4) chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) license.
(b)(1)–(7) 1 An application for a health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4) chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) license shall include all of the following: (1) Detailed documentation of the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1)'s: a. Technical architecture and operational specifications. b. Data collection, processing, storage, and deletion practices. c. Security measures and protocols. d. Privacy protection mechanisms. (2) Quality control and testing procedures. (3) Risk assessment and mitigation strategies. (4) Evidence of compliance with applicable federal and state regulations. (5) Proof of insurance coverage. (6) Required application fees. (7) Any additional information required by the DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2).
(c)(1)–(6) 1 The DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2) shall review applications for health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4) chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) licenses based upon all of the following: (1) Technical competence and reliability as compliant with industry standards. (2) Data protection and security measures as compliant with industry standards. (3) Compliance with applicable regulations. (4) Risk management procedures. (5) Professional qualification requirements, including: a. Evidence-based standards demonstrating substantial efficacy for the supported use case of health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4); and b. Endorsement by qualified experts within the field of the supported use case. (6) Public safety considerations.
(d) The DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2) shall adopt rules to carry out the purposes of this Chapter.
Section 114B-3 imposes the core licensing gate: no person may operate or distribute a chatbot that deals substantially with health information without first obtaining a health information chatbot license from the Department of Justice. The application must include detailed technical documentation, quality control procedures, risk assessments, compliance evidence, insurance proof, and fees. The Department reviews applications against technical competence, data protection, regulatory compliance, risk management, professional qualification requirements (including evidence-based efficacy standards and expert endorsement), and public safety considerations.
Subsection (d) directs the Department to adopt implementing rules, which is an administrative directive rather than a private-party compliance obligation.
(a) 2 A licenseeLicenseeA person holding a license issued and in effect under this Chapter.G.S. § 114B-2(5) shall maintain professional liability insurance in an amount not less than the amount per occurrence required by the DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2).
(b)(1) 3 Implement industry-standard encryption for data in transit and at rest, maintain detailed access logs, and conduct regular security audits no less than once every six (6) months.
(b)(2) 4 Report any data breaches within twenty-four (24) hours to the DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2) and within forty-eight (48) hours to affected consumers, notwithstanding any provision of law to the contrary.
(b)(3) 5 Obtain explicit user consent for data collection and use.
(b)(4)–(5) 6 Provide users with access to their personal data. (5) Provide users with the ability to delete their data upon request.
(c)(1)–(6) 7 A licenseeLicenseeA person holding a license issued and in effect under this Chapter.G.S. § 114B-2(5) must clearly disclose all of the following: (1) The artificial nature of the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1). (2) Limitations of the service. (3) Data collection and use practices. (4) User rights and remedies. (5) Emergency resources when applicable. (6) Human oversight and intervention protocols.
(d)(1)–(3) 8 A licenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. § 114B-2(5) shall do all of the following: (1) Demonstrate effectiveness through peer-reviewed, controlled trials with appropriate validation studies done on appropriate sample sizes with real-world performance data. (2) Demonstrate effectiveness in a comparative analysis to human expert performance. (3) Meet minimum domain benchmarks as established by the DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2).
(e) 9 A licenseeLicenseeA person holding a license issued and in effect under this Chapter.G.S. § 114B-2(5) shall conduct regular inspections and perform an annual third-party audit. Results of all inspections and audits must be made available to the DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2).
(f) 10 A licenseeLicenseeA person holding a license issued and in effect under this Chapter.G.S. § 114B-2(5) shall implement continuous monitoring systems for safety and risk indicators and submit quarterly performance reports including incident reports.
Section 114B-4 imposes ongoing operational obligations on licensees under the Chatbot Licensing Act. These include maintaining professional liability insurance, implementing encryption and access controls, reporting data breaches within 24 hours to the Department and 48 hours to affected consumers, obtaining explicit user consent for data collection, providing users access to and deletion of their personal data, making a series of mandatory disclosures (AI nature, limitations, data practices, user rights, emergency resources, human oversight protocols), demonstrating effectiveness through peer-reviewed trials and comparative analysis, conducting annual third-party audits, and implementing continuous monitoring with quarterly reporting.
The disclosure requirements in subsection (c) are notable for their breadth — they require disclosure not just of the chatbot's AI nature but also of emergency resources and human oversight protocols, going well beyond typical AI identity disclosure.
(a) The DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2) shall enforce the provisions of, and the rules adopted under, this Chapter.
(b)(1)–(9) 11 The Attorney General shall designate a Director, officers, and employees assigned to the oversight and enforcement of this Chapter. Upon presenting appropriate credentials and a written notice to the owner, operator, or agent in charge, those officers and employees are authorized to enter, at reasonable times, any factory, warehouse, or establishment in which chatbotsChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) licensed under this Chapter are manufactured, processed, or held, and to inspect, in a reasonable manner and within reasonable limits and in a reasonable time. In addition to physical inspections, the DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2) may conduct digital inspections of licensed chatbotsChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) under this Chapter, to include the following: (1) Examination of source code, algorithms, and machine learning models. (2) Review of data processing and storage practices. (3) Evaluation of cybersecurity measures and protocols. (4) Assessment of user data privacy protections. (5) Testing of chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) responses and behaviors in various scenarios. (6) Audit of data collection, use, and retention practices. (7) Inspection of software development and update processes. (8) Review of remote access and monitoring capabilities. (9) Evaluation of integration with other digital health technologies or platforms.
(c) 11 As part of any inspection, whether physical or digital, the Director may require access to all records relating to the development, testing, validation, production, distribution, and performance of a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) licensed under this Chapter.
(d) Any information obtained during an inspection which falls within the definition of a trade secret or confidential commercial information as defined in 21 CFR 20.61 shall be treated as confidential and shall not be disclosed under Chapter 132 of the General Statutes, except as may be necessary in proceedings under this Chapter or other applicable law.
(e) Following any inspection, the Director shall provide a detailed report of findings to the manufacturer or importer, including any identified deficiencies and required corrective actions.
(f) 12 Every person who is a manufacturer or importer of a licensed chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) under this Chapter shall establish and maintain such records, and make such reports to the Director, as the Director may by regulation reasonably require to assure the safety and effectiveness of such devices.
Section 114B-5 establishes the Department of Justice as the enforcement authority for Chapter 114B. It authorizes the Attorney General to designate a Director, officers, and employees for oversight and enforcement, and grants inspection authority over both physical premises and digital systems of licensed chatbot operators. Digital inspections may cover source code, algorithms, machine learning models, data practices, cybersecurity, privacy protections, chatbot behavioral testing, and integration with health technologies.
Subsection (c) grants the Director access to all records related to chatbot development, testing, validation, production, distribution, and performance. Trade secret protections under 21 CFR 20.61 apply to confidential information obtained during inspections. Following inspections, the Director must provide detailed findings including deficiencies and required corrective actions. Manufacturers and importers must maintain records and make reports as the Director may require.
(a)(1)–(4) It is unlawful for any person to do any of the following: (1) Introduce or deliver for introduction into state commerce any chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) that deals substantially with health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4) without complying with the licensing requirement of this Chapter. (2) Fail to comply with any requirement of this Chapter or any rule adopted hereunder. (3) Refuse to permit access to or copying of any record as required by this Chapter. (4) Fail to report adverse events as required under this Chapter.
(b) The DepartmentDepartmentThe North Carolina Department of Justice.G.S. § 114B-2(2) may, at its discretion, exempt certain prohibited acts from some or all of these prohibitions if it determines that the exemption is consistent with the protection of the public.
(c) Any person who violates any provision of G.S. 114B-5 shall be subject to civil penalties in the amount of $50,000. The clear proceeds of fines and forfeitures provided for in Chapter shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.
Section 114B-6 enumerates prohibited conduct and sets the penalty structure for Chapter 114B. It is unlawful to introduce a health-information chatbot into state commerce without a license, fail to comply with any chapter requirement or rule, refuse inspection access, or fail to report adverse events. The Department may exempt certain acts from prohibition at its discretion if consistent with public protection. Violations of § 114B-5 carry a $50,000 civil penalty remitted to the Civil Penalty and Forfeiture Fund.
If any provision of this Chapter is determined to be unenforceable or invalid by a court of competent jurisdiction, the remaining provisions of this Chapter shall not be affected.
Standard severability clause. If any provision of Chapter 114B is determined to be unenforceable or invalid, the remaining provisions are not affected. Creates no compliance obligation.
This act shall be known and may be cited as the ChatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) Safety and Privacy Act.
Establishes the short title of Chapter 170 as the Chatbot Safety and Privacy Act. Creates no compliance obligation.
(1)–(15) The following definitions apply in this Chapter: (1) Best interestsBest interestsThose interests affected by the entrustment of data, labor, or attention from a user to a covered platform.G.S. § 170-2(1). — Those interests affected by the entrustment of data, labor, or attention from a user to a covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4). (2) ChatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1). — A generative artificial intelligence systemGenerative artificial intelligence systemAny system that uses artificial intelligence, as defined in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law No. 115-232, 132 Stat. 1636 (2018), to generate or substantially modify image, video, audio, multimedia, or text content.G.S. § 114B-2(3) with which users can interact by or through an interface that approximates or simulates conversationConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3) through a text, audio, or visual medium. (3) ConversationConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3). — In reference to a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1), a series of inputs from a human user and responses from a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) that often have sequential flow and the maintenance of conversationConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3) context by the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1). (4) Covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4). — Any person that provides chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) services for official purposes. (5) DatasetDatasetThe structured collection of data, typically stored in electronic form, organized in a way that allows for easy retrieval, analysis, and information.G.S. § 170-2(5). — The structured collection of data, typically stored in electronic form, organized in a way that allows for easy retrieval, analysis, and information. (6) De-identificationDe-identificationThe process of removing all pieces of data that link a specific user to a particular interaction, including the following: a. Methods which replaces identifiable information, including names, addresses, identification numbers, or any other distinctive data, with pseudonyms or unique identifiers not linked to a user's identity. b. Methods which aggregate and generalize the data to such an extent that it becomes statistically improbable to re-identify any user from the de-identified data. c. Methods which eliminate any context, metadata, or information that can be traced back to a specific user or interaction, including timestamps and geolocation data.G.S. § 170-2(6). — The process of removing all pieces of data that link a specific user to a particular interaction, including the following: a. Methods which replaces identifiable information, including names, addresses, identification numbers, or any other distinctive data, with pseudonyms or unique identifiers not linked to a user's identity. b. Methods which aggregate and generalize the data to such an extent that it becomes statistically improbable to re-identify any user from the de-identified data. c. Methods which eliminate any context, metadata, or information that can be traced back to a specific user or interaction, including timestamps and geolocation data. (7) Emergency situationEmergency situationA situation where a user using a chatbot indicates that they intend to either commit harm to themselves or commit harm to others.G.S. § 170-2(7). — A situation where a user using a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) indicates that they intend to either commit harm to themselves or commit harm to others. (8) Generative artificial intelligence systemGenerative artificial intelligence systemAny system that uses artificial intelligence, as defined in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law No. 115-232, 132 Stat. 1636 (2018), to generate or substantially modify image, video, audio, multimedia, or text content.G.S. § 114B-2(3). — Any system that uses artificial intelligence, as defined in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law No. 115 232, 132 Stat. 1636 (2018), to generate or substantially modify image, video, audio, multimedia, or text content. (9) Legitimate purposeLegitimate purposeA purpose that is lawful and in line with the stated objectives, functionalities, core services, and reasonable expectation of users on a platform.G.S. § 170-2(9). – A purpose that is lawful and in line with the stated objectives, functionalities, core services, and reasonable expectation of users on a platform. (10) Self-destructing messagesSelf-destructing messagesA type of data that is programmed to automatically and irreversibly delete and become inaccessible to both the sender and the recipient after a predetermined period.G.S. § 170-2(10). — A type of data that is programmed to automatically and irreversibly delete and become inaccessible to both the sender and the recipient after a predetermined period. (11) Sensitive personal informationSensitive personal informationThe term does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records. The term does include user information relating to any of the following: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services. b. Social security, driver's license, state identification card or passport number. c. Account log-in, financial account, debit card or credit card number in combination with any required security or access code, password or credentials allowing access to an account. d. Contents of a user's mail, email, and text messages. e. Financial information, including credit score, bank account balance, loan information, investment details, and income details. f. Personal education records. g. Genetic information of an individual's family members. h. Information about an individual's minor children. i. Financial transaction history. j. Information collected from children under thirteen (13) years of age.G.S. § 170-2(11). — The term does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records. The term does include user information relating to any of the following: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health informationHealth informationThe term: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services or supplies. 12. Data that identifies a consumer seeking health care services. 13. Any data inferred by a company or person for use in the treatment, diagnosis, or intervention regarding a mental or physical health condition. b. Does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.G.S. § 114B-2(4). 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services. b. Social security, driver's license, state identification card or passport number. c. Account log-in, financial account, debit card or credit card number in combination with any required security or access code, password or credentials allowing access to an account. d. Contents of a user's mail, email, and text messages. e. Financial information, including credit score, bank account balance, loan information, investment details, and income details. f. Personal education records. g. Genetic information of an individual's family members. h. Information about an individual's minor children. i. Financial transaction history. j. Information collected from children under thirteen (13) years of age. (12) Terms of service agreementTerms of service agreementAn electronic agreement between a user and a covered platform that sets forth the terms, conditions, rights, and responsibilities of the respective parties in connection with the use of the platform's chatbot services.G.S. § 170-2(12). — An electronic agreement between a user and a covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) that sets forth the terms, conditions, rights, and responsibilities of the respective parties in connection with the use of the platform's chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) services. (13) Transport encryptionTransport encryptionA security measure wherein data is encrypted during its transmission from one point to another. The data is typically encrypted by the sender's system or an intermediary service before being sent over a network, and then decrypted by the recipient's system or an intermediary service upon arrival. While the data is protected during transit, it may be accessible in unencrypted form at the endpoints or by the service providers facilitating the transmission.G.S. § 170-2(13). — A security measure wherein data is encrypted during its transmission from one point to another. The data is typically encrypted by the sender's system or an intermediary service before being sent over a network, and then decrypted by the recipient's system or an intermediary service upon arrival. While the data is protected during transit, it may be accessible in unencrypted form at the endpoints or by the service providers facilitating the transmission. (14) Trusting partyTrusting partyAny user of a covered platform who gives, either voluntary or involuntary, personal information to a covered platform, or any user who enters into any information relationship with a covered platform.G.S. § 170-2(14). – Any user of a covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) who gives, either voluntary or involuntary, personal information to a covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4), or any user who enters into any information relationship with a covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4). (15) User-related data. — Any data collected directly or indirectly from the user and linked or reasonably linkable to the user by the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1), including but not limited to the following: a. Personal data. — Data that is directly linked to the user or indirectly identifiable, including by reference to an identifier such as a name, an identification number, precise geolocation, an online identifier or one of several special characteristics, which expresses the physical, physiological, genetic, mental, commercial, cultural or social identity of the user. b. Usage data. — Data that is gathered about users' interactions, behaviors, preferences, and usage patterns within the platforms, including but not limited to user engagement and conversationConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3) content. c. Other user data. — Any data not covered by personal data and usage data concerning a user, including data collected by third party cookies.
Defines 15 terms for Chapter 170. The most consequential definitions are Covered platform (revenue or user-count threshold with carve-outs for educational/research and government entities), Sensitive personal information (an expansive list covering health, financial, identification, communications, education, and children's data), Trusting party (any user in an information relationship with the platform), and User-related data (personal data, usage data, and other data including third-party cookies). The definition of Emergency situation specifically covers self-harm and harm-to-others scenarios. No compliance obligation is imposed by this section itself.
(a) 13 A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall not process data or design chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) systems and tools in ways that significantly conflict with trusting parties' best interestsBest interestsThose interests affected by the entrustment of data, labor, or attention from a user to a covered platform.G.S. § 170-2(1), as implicated by their interactions with chatbotsChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1).
(b)(1) 14 Duty of loyalty in emergency situationsEmergency situationA situation where a user using a chatbot indicates that they intend to either commit harm to themselves or commit harm to others.G.S. § 170-2(7). — A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall implement and maintain reasonably effective systems to detect, promptly respond to, report, and mitigate emergency situationsEmergency situationA situation where a user using a chatbot indicates that they intend to either commit harm to themselves or commit harm to others.G.S. § 170-2(7) in a manner that prioritizes the safety and well-being of users over the platform's other interests.
(b)(2) 15 Duty of loyalty regarding emotional dependence. — A covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall implement and maintain reasonably effective systems to detect and prevent emotional dependence of a user on a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1), prioritizing the user's psychological well-being over the platform's interest in user engagement or retention. a. This duty only applies to any covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) that utilizes a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) designed to (i) generate social connections with users, (ii) engage in extended conversationConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3) mimicking human interaction, or (iii) provide emotional support or companionship. b. The determination required by sub-subdivision a. of this subdivision shall be based on the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1)'s intended purpose, design features, conversational capabilities, and interaction patterns with users.
(b)(3) 16 Duty of loyalty un chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) identity disclosure. — A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) has a duty to clearly and consistently identify the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) as an artificial entity when that fact is not clearly apparent. The platform shall not process data or design systems in ways that deceive or mislead users about the non-human nature of the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1), prioritizing transparency over any potential benefits of perceived human-like interaction.
(b)(4) 17 Duty of loyalty in influence. — A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall not process data or design chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) systems and tools in ways that influence trusting parties to achieve particular results that are against the best interests of trusting parties.
(b)(5) 18 Duty of loyalty in collection. — A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall collect and store only that information that does not conflict with a trusting partyTrusting partyAny user of a covered platform who gives, either voluntary or involuntary, personal information to a covered platform, or any user who enters into any information relationship with a covered platform.G.S. § 170-2(14)'s best interestsBest interestsThose interests affected by the entrustment of data, labor, or attention from a user to a covered platform.G.S. § 170-2(1). Such information must be (i) adequate, in the sense that it is sufficient to fulfill a legitimate purpose of the platform; (ii) relevant, in the sense that the information has a relevant link to that legitimate purposeLegitimate purposeA purpose that is lawful and in line with the stated objectives, functionalities, core services, and reasonable expectation of users on a platform.G.S. § 170-2(9), and (iii) necessary, in the sense that it is the minimum amount of information which is needed for that legitimate purposeLegitimate purposeA purpose that is lawful and in line with the stated objectives, functionalities, core services, and reasonable expectation of users on a platform.G.S. § 170-2(9).
(b)(6) 19 Duty of loyalty in personalization. — A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall be loyal to the best interests of trusting parties when personalizing content based upon personal information or characteristics.
(b)(7) 20 Duty of loyalty in gatekeeping. — A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall be a loyal gatekeeper of personal information from a trusted party, including avoiding conflicts to the best interests of trusting parties when allowing government or other third-party access to trusting parties and their data.
Section 170-3 imposes an overarching fiduciary-like duty of loyalty on covered platforms, prohibiting them from processing data or designing chatbot systems in ways that significantly conflict with trusting parties' best interests. This general duty is broken into seven subsidiary duties: (1) emergency situation detection and response; (2) emotional dependence prevention (limited to companion-style chatbots); (3) chatbot identity disclosure; (4) anti-influence manipulation; (5) data minimization in collection; (6) loyal personalization; and (7) gatekeeping of personal information from third parties.
The duty of loyalty framing is unusual in AI legislation — it borrows from fiduciary law concepts and applies them to the platform-user relationship. The emotional dependence duty is limited to chatbots designed to generate social connections, engage in extended human-like conversation, or provide emotional support.
(a)–(c) 21 The duties between a covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) and an end-user shall be established through a terms of service agreementTerms of service agreementAn electronic agreement between a user and a covered platform that sets forth the terms, conditions, rights, and responsibilities of the respective parties in connection with the use of the platform's chatbot services.G.S. § 170-2(12) which is presented to the end-user in clear, conspicuous, and easily understandable language. The terms of service agreementTerms of service agreementAn electronic agreement between a user and a covered platform that sets forth the terms, conditions, rights, and responsibilities of the respective parties in connection with the use of the platform's chatbot services.G.S. § 170-2(12) must (i) explicitly outline the online service provider's obligations, (ii) describe the rights and protections afforded to the end-user under this relationship, and (iii) require affirmative consent from the end-user before the agreement takes effect. (b) The covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) must provide clear notice to end-users of any material changes to the terms of service agreementTerms of service agreementAn electronic agreement between a user and a covered platform that sets forth the terms, conditions, rights, and responsibilities of the respective parties in connection with the use of the platform's chatbot services.G.S. § 170-2(12) and obtain renewed consent for such changes. (c) The terms of service agreementTerms of service agreementAn electronic agreement between a user and a covered platform that sets forth the terms, conditions, rights, and responsibilities of the respective parties in connection with the use of the platform's chatbot services.G.S. § 170-2(12) must be easily accessible to users at all times through the covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4)'s application or the covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4)'s website.
(d) A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall implement a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) identification disclosure process that meets the requirements outlined in G.S. 170-5.
Section 170-4 requires covered platforms to establish the platform-user relationship through a terms of service agreement presented in clear, conspicuous, and easily understandable language. The agreement must explicitly outline the platform's obligations, describe user rights and protections, and require affirmative consent. Material changes require clear notice and renewed consent. The agreement must be accessible at all times. Subsection (d) cross-references § 170-5 for chatbot identification disclosure requirements.
(a)(1)–(2) 22 The chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) identification process shall include all of the following elements: (1) A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall clearly inform users that the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) is: a. Not human, human-like, or sentient. b. A computer program designed to mimic human conversationConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3) based on statistical analysis of human-produced text. c. Incapable of experiencing emotions such as love or lust. d. Without personal preferences or feelings. (2) The information required by subdivision (1) of this subsection shall be readily accessible, clearly presented, and concisely conveyed in less than three hundred (300) words.
(b)(1)–(2) 22 A users shall provide explicit and informed consent to interact with the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1). The consent process shall: (1) Require an affirmative action from the user (such as clicking an "I understand" button); and (2) Confirm the user's understanding of the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1)'s identity and limitations.
(c) 23 A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) is prohibited from using deceptive design elements that manipulate or coerce users into providing consent or obscure the nature of the chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) or the consent process.
(d) 22 The chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) identity communication and opt-in consent process shall be repeated at the start of each new session with a user.
(e) 22 The chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) identification and consent process required by this section shall be separate and distinct from any privacy policy agreement or other consent processes required by law or platform policy.
Section 170-5 imposes detailed chatbot identification disclosure and consent requirements. Covered platforms must inform users that the chatbot is (a) not human, human-like, or sentient, (b) a computer program designed to mimic human conversation based on statistical analysis, (c) incapable of experiencing emotions, and (d) without personal preferences or feelings. This disclosure must be under 300 words, readily accessible, and clearly presented. Users must provide explicit, informed consent through an affirmative action confirming understanding. Deceptive design elements that manipulate or coerce consent are prohibited. The disclosure and consent process must repeat at the start of each new session and must be separate from any privacy policy or other consent process.
This is an unusually prescriptive AI identity disclosure requirement — most statutes require disclosure of AI nature without dictating specific statements about sentience, emotions, or preferences.
(a)(1) 24 Ensure that all user-related data disclosed collected through conversationsConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3) between users and chatbotsChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) or through third-party cookies, undergoes a process of de-identificationDe-identificationThe process of removing all pieces of data that link a specific user to a particular interaction, including the following: a. Methods which replaces identifiable information, including names, addresses, identification numbers, or any other distinctive data, with pseudonyms or unique identifiers not linked to a user's identity. b. Methods which aggregate and generalize the data to such an extent that it becomes statistically improbable to re-identify any user from the de-identified data. c. Methods which eliminate any context, metadata, or information that can be traced back to a specific user or interaction, including timestamps and geolocation data.G.S. § 170-2(6) prior to storage and analysis;
(a)(2) 25 Take reasonable care to prohibit the incorporation or inclusion of any sensitive personal informationSensitive personal informationThe term does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records. The term does include user information relating to any of the following: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services. b. Social security, driver's license, state identification card or passport number. c. Account log-in, financial account, debit card or credit card number in combination with any required security or access code, password or credentials allowing access to an account. d. Contents of a user's mail, email, and text messages. e. Financial information, including credit score, bank account balance, loan information, investment details, and income details. f. Personal education records. g. Genetic information of an individual's family members. h. Information about an individual's minor children. i. Financial transaction history. j. Information collected from children under thirteen (13) years of age.G.S. § 170-2(11) derived from a user during the use of a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) into an aggregate datasetDatasetThe structured collection of data, typically stored in electronic form, organized in a way that allows for easy retrieval, analysis, and information.G.S. § 170-2(5) used to train any chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) or generative artificial intelligence systemGenerative artificial intelligence systemAny system that uses artificial intelligence, as defined in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Public Law No. 115-232, 132 Stat. 1636 (2018), to generate or substantially modify image, video, audio, multimedia, or text content.G.S. § 114B-2(3).
(a)(3) 26 Store all chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) conversationsConversationIn reference to a chatbot, a series of inputs from a human user and responses from a chatbot that often have sequential flow and the maintenance of conversation context by the chatbot.G.S. § 170-2(3) which does not include sensitive personal informationSensitive personal informationThe term does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records. The term does include user information relating to any of the following: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services. b. Social security, driver's license, state identification card or passport number. c. Account log-in, financial account, debit card or credit card number in combination with any required security or access code, password or credentials allowing access to an account. d. Contents of a user's mail, email, and text messages. e. Financial information, including credit score, bank account balance, loan information, investment details, and income details. f. Personal education records. g. Genetic information of an individual's family members. h. Information about an individual's minor children. i. Financial transaction history. j. Information collected from children under thirteen (13) years of age.G.S. § 170-2(11) for at least sixty (60) days.
(b)–(c) 27 Each covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) that meets the standard set forth in subsection (a) of this section shall utilize self-destructing messagesSelf-destructing messagesA type of data that is programmed to automatically and irreversibly delete and become inaccessible to both the sender and the recipient after a predetermined period.G.S. § 170-2(10) with a predetermined destruction period of thirty (30) days after the data has been acquired. (c) The requirements of subsection (b) of this section shall apply to all chatbotsChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) which are employed in: healthcare, financial services, the legal field, government services, mental health support, and education. In general, this applies to any domain, beyond those specifically listed, where chatbotsChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1) are employed primarily for the processing or storage of sensitive personal informationSensitive personal informationThe term does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records. The term does include user information relating to any of the following: a. Includes user information relating to physical or mental health status, including: 1. Individual health conditions, treatment, diseases, or diagnosis. 2. Social, psychological, behavioral, and medical interventions. 3. Health-related surgeries or procedures. 4. Use or purchase of prescribed medication. 5. Bodily functions, vital signs, symptoms, or health-related measurements. 6. Diagnoses or diagnostic testing, treatment, or medication. 7. Gender-affirming care information. 8. Reproductive or sexual health information. 9. Biometric data. 10. Genetic data. 11. Precise location information that could reasonably indicate a consumer's attempt to acquire or receive health services. b. Social security, driver's license, state identification card or passport number. c. Account log-in, financial account, debit card or credit card number in combination with any required security or access code, password or credentials allowing access to an account. d. Contents of a user's mail, email, and text messages. e. Financial information, including credit score, bank account balance, loan information, investment details, and income details. f. Personal education records. g. Genetic information of an individual's family members. h. Information about an individual's minor children. i. Financial transaction history. j. Information collected from children under thirteen (13) years of age.G.S. § 170-2(11).
(d) 28 All covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) shall utilize transport encryptionTransport encryptionA security measure wherein data is encrypted during its transmission from one point to another. The data is typically encrypted by the sender's system or an intermediary service before being sent over a network, and then decrypted by the recipient's system or an intermediary service upon arrival. While the data is protected during transit, it may be accessible in unencrypted form at the endpoints or by the service providers facilitating the transmission.G.S. § 170-2(13) for all messages between a user and a chatbotChatbotA generative artificial intelligence system with which users can interact by or through an interface that approximates or simulates conversation through a text, audio, or visual medium.G.S. § 114B-2(1).
Section 170-6 imposes four data privacy obligations on covered platforms. First, all user-related data collected through chatbot conversations or third-party cookies must be de-identified prior to storage and analysis. Second, platforms must take reasonable care to prohibit incorporating sensitive personal information from chatbot use into aggregate training datasets. Third, chatbot conversations not containing sensitive personal information must be stored for at least 60 days. Fourth, platforms meeting the de-identification standard must use self-destructing messages with a 30-day destruction period for chatbots employed in healthcare, financial services, legal services, government services, mental health support, education, and any domain primarily processing sensitive personal information. Finally, all covered platforms must use transport encryption for all messages.
The training data prohibition in subsection (a)(2) is notable — it categorically bars sensitive personal information from training datasets, which is stricter than most data minimization frameworks.
(a) In any case in which the Attorney General has reason to believe that a covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) has violated or is violating any provision of this Chapter, the State, as parens patriae, may bring a civil action on behalf of the residents of the State to (i) enjoin any practice violating this Chapter and enforce compliance with the pertinent section or sections on behalf of residents of the State; (ii) obtain damages, restitution, or other compensation, each of which shall be distributed in accordance with State law; or (iii) obtain such other relief as the court may consider to be appropriate.
(b) Any person who suffers injury in fact as a result of a violation of this Chapter may bring a civil action against the covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) to enjoin further the violation; recover damages in an amount equal to the greater of actual damages or one thousand dollars ($1,000) per violation; obtain reasonable attorneys' fees and litigation costs; and obtain any other relief that the court deems appropriate.
(c) An action under paragraph subsection (b) of this section may not be brought more than two (2) years after the date on which the person first discovered or reasonably should have discovered the violation. No person shall be permitted to bring more than one action under this subsection against the same covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding $100,000 in the last calendar year or any of the two preceding calendar years or (ii) has more than 5,000 monthly active users in the United States for half or more of the months during the last 12 months. The term does not include any person that provides chatbot services solely for educational or research purposes and does not monetize such services through advertising or commercial uses or any government entity providing chatbot services for official purposes.G.S. § 170-2(4) for the same alleged violation.
(d) The rights and remedies provided for in this subsection may not be waived by any agreement, policy, form, or condition of service.
Section 170-7 establishes a dual enforcement mechanism for Chapter 170. The Attorney General may bring civil action as parens patriae to enjoin violations, obtain damages, restitution, or other compensation. Private plaintiffs who suffer injury in fact may bring civil actions for injunctive relief, the greater of actual damages or $1,000 per violation, reasonable attorneys' fees and litigation costs, and any other appropriate relief. A two-year statute of limitations runs from discovery. Only one action per violation per platform is permitted. Rights and remedies may not be waived by agreement, policy, form, or condition of service.
If any provision of this Chapter is determined to be unenforceable or invalid, the remaining provisions of this Chapter shall not be affected.
Standard severability clause for Chapter 170. Creates no compliance obligation.