WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(1)(a)–(b) As used in this section the following terms shall have the following meanings: (a) "Generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean a combination of computer code and numerical values designed to use artificial intelligence to generate outputs in the form of expressive material such as text, images, audio, or video and is designed for use by consumers.Gen. Bus. Law § 399-zzzzzz(1)(a)" shall mean a combination of computer code and numerical values designed to use artificial intelligenceArtificial intelligence"Artificial intelligence" shall mean an automated system designed to perform a task typically associated with human intelligence or cognitive function.Gen. Bus. Law § 399-zzzzzz(1)(b) to generate outputs in the form of expressive material such as text, images, audio, or video and is designed for use by consumers. (b) "Artificial intelligenceArtificial intelligence"Artificial intelligence" shall mean an automated system designed to perform a task typically associated with human intelligence or cognitive function.Gen. Bus. Law § 399-zzzzzz(1)(b)" shall mean an automated system designed to perform a task typically associated with human intelligence or cognitive function.
Subdivision 1 establishes the bill's two defined terms. Generative artificial intelligence system is defined broadly as any combination of computer code and numerical values designed to use AI to generate expressive material — text, images, audio, or video — for consumer use. Artificial intelligence is defined as an automated system designed to perform a task typically associated with human intelligence or cognitive function. The definitions do not define the covered party types (owner, licensee, or operator), relying on those terms' ordinary legal meanings.
(2) 1 The owner, licensee or operator of a generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean a combination of computer code and numerical values designed to use artificial intelligence to generate outputs in the form of expressive material such as text, images, audio, or video and is designed for use by consumers.Gen. Bus. Law § 399-zzzzzz(1)(a) shall conspicuously display a warning on the system's user interface that is reasonably calculated to consistently apprise the user that the outputs of the generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean a combination of computer code and numerical values designed to use artificial intelligence to generate outputs in the form of expressive material such as text, images, audio, or video and is designed for use by consumers.Gen. Bus. Law § 399-zzzzzz(1)(a) may be inaccurate and/or inappropriate.
Subdivision 2 is the bill's sole operative provision. It requires the owner, licensee, or operator of a generative artificial intelligence system to conspicuously display a warning on the system's user interface. The warning must be reasonably calculated to consistently apprise the user that outputs may be inaccurate and/or inappropriate. The provision does not prescribe specific warning language, placement, or format, leaving compliance to a reasonableness standard.
(3) 2 Where such owner, licensee or operator of a generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean a combination of computer code and numerical values designed to use artificial intelligence to generate outputs in the form of expressive material such as text, images, audio, or video and is designed for use by consumers.Gen. Bus. Law § 399-zzzzzz(1)(a) fails to provide the warning required in subdivision two of this section, such owner, licensee or operator shall be assessed a civil penalty of the lesser of twenty-five dollars per user of such system or one hundred thousand dollars. Each calendar year during which a violation continues shall constitute a separate violation.
Subdivision 3 establishes the enforcement mechanism: a civil penalty of the lesser of $25 per user or $100,000 for failure to provide the required warning. Each calendar year during which a violation continues constitutes a separate violation, creating a recurring annual exposure rather than a one-time penalty. The provision does not designate a specific enforcement agency or create a private right of action.