North Carolina · Senate Bill · 2025 Session
SB963
North Carolina Senate Bill 963 — An Act Regulating Artificial Intelligence Chatbot Licensing, Safety, and Privacy in North Carolina

Status ● Failed Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 9 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Part I (Licensing): Enforced by the North Carolina Department of Justice. The Attorney General designates a Director, officers, and employees for oversight, including physical and digital inspections. No private right of action under Part I. Part II (Safety & Privacy): Enforced by the Attorney General as parens patriae on behalf of residents. Private right of action available to any person who suffers injury in fact. Two-year statute of limitations from discovery. One action per violation per covered platform. Rights and remedies may not be waived by agreement.
Private Right of Action
private right of action under Part I.
Penalties
Part I: Civil penalties of $50,000 per violation of G.S. 114B-5 or G.S. 114B-6, payable to the Civil Penalty and Forfeiture Fund. Part II: Private plaintiffs may recover the greater of actual damages or $1,000 per violation, plus reasonable attorneys' fees and litigation costs. Injunctive relief available to both the Attorney General and private plaintiffs. The Attorney General may also obtain damages, restitution, or other compensation. Rights and remedies may not be waived by any agreement, policy, form, or condition of service.

What This Bill Requires

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.

Statutory Text
Analysis & Obligations
G.S. 114B-1
Short title

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 Chapter 114B as the Chatbot Licensing Act. This section creates no compliance obligation.

G.S. 114B-2
Definitions (Chatbot Licensing Act)

(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 the key terms used throughout Chapter 114B. The definitions section establishes the scope of the licensing regime by defining chatbot broadly to include any generative AI system with a conversational interface, and health information to encompass a wide range of physical, mental, and behavioral health data. The threshold for licensing is any chatbot that "deals substantially" with health information.

G.S. 114B-3
Licensing requirements for health information; review standards
DeployerDeveloper

(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.

This section creates the core licensing requirement of Chapter 114B: no person may operate or distribute a chatbot that deals substantially with health information without first obtaining a license from the Department of Justice. The application requirements are extensive, demanding detailed technical documentation covering architecture, data practices, security, privacy, quality control, risk assessment, regulatory compliance evidence, insurance proof, and fees. The Department reviews applications against technical competence, data protection, regulatory compliance, risk management, professional qualification (including evidence-based efficacy and expert endorsement), and public safety criteria. The Department is also directed to adopt implementing rules.

Compliance actions 1 item
1
Persons operating or distributing 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) must obtain 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 from the Department of Justice before operation, submitting 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 technical architecture, data practices, security measures, privacy protections, quality control procedures, risk assessments, regulatory compliance evidence, proof of insurance, and application fees.
R-02.3
G.S. 114B-4
Operational requirements
Deployer

(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 A licenseeLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) shall do all of the following: (1) 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 months.

(b)(2) 4 Report any data breaches within 24 hours to the DepartmentDepartmentThe North Carolina Department of Justice.G.S. 114B-2(2) and within 48 hours to affected consumers, notwithstanding any provision of law to the contrary.

(b)(3)–(5) 5 Obtain explicit user consent for data collection and use. (4) Provide users with access to their personal data. (5) Provide users with the ability to delete their data upon request.

(c)(1)–(6) 6 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) 7 A licenseeLicenseeA 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) 8 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) 9 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 extensive ongoing operational requirements on licensees under the Chatbot Licensing Act. These span six distinct obligation categories: professional liability insurance maintenance, data security and auditing, data breach reporting, user consent and data access rights, transparency disclosures (including AI nature, limitations, data practices, user rights, emergency resources, and human oversight protocols), efficacy demonstration through peer-reviewed trials and benchmarking, annual third-party audits with results available to the Department, and continuous safety monitoring with quarterly performance reporting.

Compliance actions 8 items
2
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must maintain professional liability insurance in an amount not less than the per-occurrence amount required by the DepartmentDepartmentThe North Carolina Department of Justice.G.S. 114B-2(2).
3
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must 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 months.
G-01.3
4
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must report any data breaches to the DepartmentDepartmentThe North Carolina Department of Justice.G.S. 114B-2(2) within 24 hours and to affected consumers within 48 hours.
R-01.1
5
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must obtain explicit user consent for data collection and use, provide users with access to their personal data, and allow users to delete their data upon request.
D-01.1
6
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must clearly disclose 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), limitations of the service, data collection and use practices, user rights and remedies, emergency resources when applicable, and human oversight and intervention protocols.
T-01.1
7
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must demonstrate effectiveness through peer-reviewed, controlled trials with appropriate validation studies on appropriate sample sizes with real-world performance data, demonstrate effectiveness in a comparative analysis to human expert performance, and meet minimum domain benchmarks established by the DepartmentDepartmentThe North Carolina Department of Justice.G.S. 114B-2(2).
S-01.1
8
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must conduct regular inspections and perform an annual third-party audit, and make all inspection and audit results available to the DepartmentDepartmentThe North Carolina Department of Justice.G.S. 114B-2(2).
G-01.5
9
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must implement continuous monitoring systems for safety and risk indicators and submit quarterly performance reports, including incident reports, to the DepartmentDepartmentThe North Carolina Department of Justice.G.S. 114B-2(2).
R-03.1
G.S. 114B-5
Identification requirements
Deployer

10 LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) shall ensure that all interactions between 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) and users comply with the provisions of G.S. 170-5.

This section cross-references G.S. 170-5, requiring licensees under the Chatbot Licensing Act to ensure that all interactions between chatbots and users comply with the chatbot identification process requirements established in Chapter 170. This bridges the two chapters, applying the Part II identification obligations to Part I licensees.

Compliance actions 1 item
10
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must ensure that 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)-user interactions comply 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) identification process requirements of G.S. 170-5, including disclosing 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 non-human nature and obtaining affirmative user consent at the start of each interaction.
T-01.1
G.S. 114B-6
Enforcement; oversight; inspections
DeployerDeveloper

(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 C.F.R. § 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.

This section establishes the enforcement infrastructure for the Chatbot Licensing Act. The Department of Justice enforces the chapter and its rules. The Attorney General designates a Director, officers, and employees authorized to conduct both physical inspections of facilities and digital inspections of licensed chatbots — including examination of source code, algorithms, ML models, data practices, cybersecurity, privacy protections, chatbot responses, data retention, software development processes, remote access capabilities, and integration with other platforms. The Director may require access to all development, testing, validation, production, distribution, and performance records. Trade secret and confidential commercial information protections apply. Post-inspection reports with deficiency findings and corrective actions are required. Manufacturers and importers must maintain records and submit reports as required by regulation.

Compliance actions 2 items
11
LicenseesLicenseeA person holding a license issued and in effect under this Chapter.G.S. 114B-2(5) must permit physical and digital inspections by the DepartmentDepartmentThe North Carolina Department of Justice.G.S. 114B-2(2), including examination of source code, algorithms, ML models, data practices, cybersecurity, privacy protections, 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, data retention, development processes, remote access, and platform integrations, and must provide access to all records relating to development, testing, validation, production, distribution, and performance upon request.
R-02.2
12
Manufacturers and importers 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) must establish and maintain records and submit reports to the Director as required by regulation to assure the safety and effectiveness of such devices.
G-01.3
G.S. 114B-7
Prohibited acts

(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 or G.S. 114B-6 shall be subject to civil penalties in the amount of fifty thousand dollars ($50,000). The clear proceeds of fines and forfeitures provided for in this Chapter shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.

This section defines prohibited conduct under the Chatbot Licensing Act. It is unlawful to introduce a health-information chatbot into state commerce without a license, to fail to comply with any chapter requirement or rule, to refuse record access, or to fail to report adverse events. The Department retains discretion to exempt certain acts from prohibition if consistent with public protection. Violations of G.S. 114B-5 (identification requirements) or G.S. 114B-6 (enforcement/inspections) carry a $50,000 civil penalty per violation, payable to the Civil Penalty and Forfeiture Fund.

G.S. 114B-8
Miscellaneous (Chatbot Licensing Act)

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.

Severability clause for Chapter 114B. If any provision is found unenforceable or invalid, the remaining provisions are unaffected. This creates no compliance obligation.

G.S. 170-1
Title (Chatbot Safety and Privacy Act)

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. No compliance obligation.

G.S. 170-2
Definitions (Chatbot Safety and Privacy Act)

(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 one hundred thousand dollars ($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). – As defined in G.S. 114B-2. (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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 replace 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 replace 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). – As defined in G.S. 114B-2. (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, drivers license, state identification card, or passport number. c. Account login, 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 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, drivers license, state identification card, or passport number. c. Account login, 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 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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 dataUser-related dataAny data collected directly or indirectly from the user and linked or reasonably linkable to the user by the chatbot, 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 conversation 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.G.S. 170-2(15). – 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 the key terms for Chapter 170. The covered platform definition establishes the bill's jurisdictional scope: any person providing chatbot services in North Carolina with either $100,000+ in annual gross revenues or 5,000+ monthly active U.S. users, excluding non-monetized educational/research providers and government entities. The section introduces a fiduciary-style best interests concept, and broadly defines user-related data to encompass personal data, usage data, and third-party cookie data. Sensitive personal information is defined expansively, covering health data, government IDs, financial credentials, communications contents, financial information, education records, genetic data, minor children's information, and data collected from children under 13.

G.S. 170-3
Duty of loyalty for chatbots
Deployer

(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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 one hundred thousand dollars ($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 in 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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 is the centerpiece of Chapter 170, establishing a fiduciary-style "duty of loyalty" that covered platforms owe to their users. The general prohibition bars platforms from processing data or designing chatbot systems in ways that significantly conflict with trusting parties' best interests. Seven subsidiary duties then operationalize this general duty across distinct domains: emergency response, emotional dependence prevention, identity disclosure, anti-manipulation, data minimization, personalization loyalty, and gatekeeping of personal information against conflicted third-party access. The emotional dependence duty is narrowed to platforms whose chatbots are designed to generate social connections, engage in extended human-like conversation, or provide emotional support or companionship.

Compliance actions 8 items
13
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 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 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 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) interactions.
CP-01.1
14
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 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) — where a user indicates intent to harm themselves or others — prioritizing user safety over the platform's other interests.
S-04.1
15
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 utilize 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 generate social connections, engage in extended human-like 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), or provide emotional support or companionship must implement and maintain reasonably effective systems to detect and prevent emotional dependence of users 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), prioritizing user psychological well-being over engagement or retention.
CP-01.4
16
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 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, and must not design systems that deceive or mislead users about 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 non-human nature.
T-01.1
17
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 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 in ways that influence trusting parties to achieve results against their 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).
CP-01.1
18
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 collect and store only 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), and such information must be adequate (sufficient for a 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)), relevant (linked to that purpose), and necessary (the minimum needed for that purpose).
D-01.4
19
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 be loyal to the best interests of trusting parties when personalizing content based on personal information or characteristics.
CP-01.1
20
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 act as loyal gatekeepers of trusting parties' personal information, avoiding conflicts 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) when allowing government or other third-party access to their data.
D-01.4
G.S. 170-4
Contractual requirements
Deployer

(a) 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 one hundred thousand dollars ($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) 21 The covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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) 21 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 one hundred thousand dollars ($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 one hundred thousand dollars ($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) 22 A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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.

This section requires covered platforms to establish their duties to end-users through a terms of service agreement presented in clear, conspicuous, and easily understandable language. The agreement must outline the platform's obligations, describe user rights and protections, and require affirmative consent. Material changes require clear notice and renewed consent. The terms of service must remain accessible at all times through the platform's application or website. Platforms must also implement the chatbot identification disclosure process required by G.S. 170-5.

Compliance actions 2 items
21
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 establish duties to end-users 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) presented in clear, conspicuous, and easily understandable language that outlines the platform's obligations, describes user rights and protections, and requires affirmative consent. Material changes require clear notice and renewed consent. The agreement must be accessible at all times through the platform's application or website.
22
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 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 of G.S. 170-5.
T-01.1
G.S. 170-5
Chatbot identification process requirements
Deployer

(a)(1)–(2) 23 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 one hundred thousand dollars ($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 300 words.

(b)(1)–(2) 23 A user 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) 24 A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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) 23 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 interaction with a user.

(e) 23 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 specifies the content and format of the chatbot identification disclosure and user consent process. Platforms must inform users that the chatbot is not human, human-like, or sentient; is a computer program designed to mimic human conversation based on statistical analysis; is incapable of experiencing emotions; and has no personal preferences or feelings. This disclosure must be presented in under 300 words, readily accessible and clearly conveyed. Users must provide explicit and informed consent via an affirmative action confirming understanding of the chatbot's identity and limitations. Deceptive design elements that manipulate consent or obscure the chatbot's nature are prohibited. The identity disclosure and consent process must be repeated at the start of each new interaction and must be separate from any privacy policy or other consent processes.

Compliance actions 2 items
23
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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, at the start of each new interaction, clearly inform users in under 300 words 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 not human, human-like, or sentient; is 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; is incapable of experiencing emotions; and has no personal preferences or feelings. Users must provide explicit, informed consent via an affirmative action confirming their understanding. This disclosure and consent process must be separate and distinct from any privacy policy or other consent process.
T-01.1
24
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 not use deceptive design elements that manipulate or coerce users into providing consent or that 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.
CP-01.3
G.S. 170-6
Data privacy requirements
Deployer

(a)(1) 25 A covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 do all of the following: (1) Ensure that all user-related dataUser-related dataAny data collected directly or indirectly from the user and linked or reasonably linkable to the user by the chatbot, 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 conversation 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.G.S. 170-2(15) 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 replace 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) 26 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, drivers license, state identification card, or passport number. c. Account login, 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 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) 27 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, drivers license, state identification card, or passport number. c. Account login, 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 13 years of age.G.S. 170-2(11) for at least 60 days.

(b)–(c) 28 Each covered platformCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 30 days after the data has been acquired. 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, drivers license, state identification card, or passport number. c. Account login, 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 13 years of age.G.S. 170-2(11).

(d) 29 All covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 specific data handling requirements on covered platforms. All user-related data collected through conversations or third-party cookies must be de-identified before storage and analysis. Platforms must take reasonable care to prohibit incorporation of sensitive personal information derived from chatbot use into aggregate training datasets. Conversations not containing sensitive personal information must be stored for at least 60 days. Platforms meeting the subsection (a) standard must use self-destructing messages with a 30-day destruction period — this requirement applies specifically to chatbots in healthcare, financial services, legal, government services, mental health support, education, and any domain primarily processing sensitive personal information. All platforms must use transport encryption for all chatbot-user messages.

Compliance actions 5 items
25
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 de-identify all user-related dataUser-related dataAny data collected directly or indirectly from the user and linked or reasonably linkable to the user by the chatbot, 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 conversation 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.G.S. 170-2(15) collected through 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) or third-party cookies prior to storage and analysis.
D-01.4
26
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 take reasonable care to prohibit the incorporation 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, drivers license, state identification card, or passport number. c. Account login, 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 13 years of age.G.S. 170-2(11) derived from 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) use into aggregate datasetsDatasetThe 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 AI system.
D-01.4
27
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 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) that do 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, drivers license, state identification card, or passport number. c. Account login, 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 13 years of age.G.S. 170-2(11) for at least 60 days.
G-01.3
28
Covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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) operating 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) in healthcare, financial services, legal, government services, mental health support, education, or any domain primarily processing or storing 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, drivers license, state identification card, or passport number. c. Account login, 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 13 years of age.G.S. 170-2(11) must implement 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 30-day destruction period after data acquisition.
D-01.9
29
All covered platformsCovered platformAny person that provides chatbot services to users in this State, if the person (i) has annual gross revenues exceeding one hundred thousand dollars ($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 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).
G-01
G.S. 170-7
Enforcement

(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 one hundred thousand dollars ($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 one hundred thousand dollars ($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 subsection (b) of this section may not be brought more than two 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 one hundred thousand dollars ($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 section may not be waived by any agreement, policy, form, or condition of service.

Section 170-7 establishes the dual enforcement mechanism for the Chatbot Safety and Privacy Act. The Attorney General may bring a parens patriae civil action on behalf of state residents to enjoin violations, obtain damages, restitution, or other compensation. Private plaintiffs who suffer injury in fact may bring civil actions to enjoin violations, recover the greater of actual damages or $1,000 per violation, obtain reasonable attorneys' fees and litigation costs, and any other appropriate relief. A two-year statute of limitations runs from discovery. Only one private action per violation per covered platform is permitted. Rights and remedies may not be waived by any agreement, policy, form, or condition of service.

G.S. 170-8
Miscellaneous (Chatbot Safety and Privacy Act)

If any provision of this Chapter is determined to be unenforceable or invalid, the remaining provisions of this Chapter shall not be affected.

Severability clause for Chapter 170. If any provision is found unenforceable or invalid, the remaining provisions are unaffected. No compliance obligation.

Passage Likelihood

Failed
Status Failed
Final action Re-ref Com On Appropriations/Base Budget

Legislative History

2026-04-30 Filed
2026-05-04 Passed 1st Reading
2026-05-04 Ref To Com On Rules and Operations of the Senate
2026-05-04 Withdrawn From Com
2026-05-04 Re-ref Com On Appropriations/Base Budget

Entry Last Reviewed

2026-05-20
AI generated