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) "ChatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a)" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.
(1)(b) "ProprietorProprietor"Proprietor" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbot system used to interact with users. Proprietors shall not include third-party developers that license their chatbot technology to a proprietor.Gen. Bus. Law § 390-f(1)(b)" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) system used to interact with users. ProprietorsProprietor"Proprietor" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbot system used to interact with users. Proprietors shall not include third-party developers that license their chatbot technology to a proprietor.Gen. Bus. Law § 390-f(1)(b) shall not include third-party developers that license their chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) technology to a proprietorProprietor"Proprietor" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbot system used to interact with users. Proprietors shall not include third-party developers that license their chatbot technology to a proprietor.Gen. Bus. Law § 390-f(1)(b).
This subsection establishes the two key defined terms that govern the bill's scope. Chatbot is defined broadly to cover any AI system that simulates human-like conversation through text, voice, or both. Proprietor is limited to entities with more than 20 employees, expressly excluding third-party developers that merely license chatbot technology. This scoping choice means the liability and disclosure obligations fall on the entity that deploys the chatbot to users, not on the upstream technology vendor.
(2)(a) 1 A proprietor of a chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) used as an alternative to a human representative, or otherwise as an agent of the proprietorProprietor"Proprietor" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbot system used to interact with users. Proprietors shall not include third-party developers that license their chatbot technology to a proprietor.Gen. Bus. Law § 390-f(1)(b) to provide any substantive response, information, advice, or action on behalf of the proprietorProprietor"Proprietor" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbot system used to interact with users. Proprietors shall not include third-party developers that license their chatbot technology to a proprietor.Gen. Bus. Law § 390-f(1)(b) may not disclaim liability of any kind where a chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) provides materially misleading, incorrect, contradictory or harmful information to a user that results in financial loss or other demonstrable harm to the user; provided, however, that no such liability shall be imposed where the proprietorProprietor"Proprietor" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbot system used to interact with users. Proprietors shall not include third-party developers that license their chatbot technology to a proprietor.Gen. Bus. Law § 390-f(1)(b) has corrected the information and substantially or completely cured the harm to the user within thirty days of notice of such harm.
(2)(b) 2 The proprietor of a chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) shall be responsible for ensuring such chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) accurately provides information aligned with the formal policies, product details, disclosures and terms of service offered to users.
(2)(c) 1 A proprietorProprietor"Proprietor" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbot system used to interact with users. Proprietors shall not include third-party developers that license their chatbot technology to a proprietor.Gen. Bus. Law § 390-f(1)(b) may not waive or disclaim this liability merely by notifying consumers that they are interacting with a non-human chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) system.
This subsection establishes the bill's core liability framework. It provides that a proprietor deploying a chatbot as an alternative to a human representative or otherwise as the proprietor's agent may not disclaim liability when the chatbot provides materially misleading, incorrect, contradictory, or harmful information that results in financial loss or other demonstrable harm. A 30-day cure period applies: liability does not attach if the proprietor corrects the information and substantially or completely remedies the harm within 30 days of receiving notice.
The subsection also imposes an affirmative accuracy obligation: proprietors must ensure their chatbots provide information consistent with the entity's formal policies, product details, disclosures, and terms of service. Critically, subsection (c) forecloses the defense that mere AI-disclosure notice to consumers can waive or disclaim this liability — meaning a proprietor cannot insulate itself simply by telling users they are chatting with a bot.
(3) 3 ProprietorsProprietor"Proprietor" refers to any person, business, company, organization, institution or government entity operating with more than twenty employees that owns, operates or deploys a chatbot system used to interact with users. Proprietors shall not include third-party developers that license their chatbot technology to a proprietor.Gen. Bus. Law § 390-f(1)(b) utilizing chatbotsChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) shall provide clear, conspicuous and explicit notice to users that they are interacting with an artificial intelligence chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) program rather than a human representative. The text of the notice shall appear in the same language and in a size easily readable by the average viewer and no smaller than the largest font size of other text appearing on the website on which the chatbotChatbot"Chatbot" shall mean an artificial intelligence system, software program, or technological application that simulates human-like conversation and interaction through text messages, voice commands, or a combination thereof to provide information and services to users.Gen. Bus. Law § 390-f(1)(a) is utilized.
This subsection imposes a standalone disclosure obligation: proprietors must provide clear, conspicuous, and explicit notice to users that they are interacting with an AI chatbot rather than a human representative. The notice must appear in the same language and in a font size at least as large as the largest font size of other text on the website where the chatbot is utilized. This is a universal requirement — it applies regardless of whether the user could reasonably be misled — and includes specific formatting mandates uncommon in comparable chatbot-disclosure statutes.
This act shall take effect on the ninetieth day after it shall have become a law.
Standard effective-date provision. The act takes effect on the ninetieth day after becoming law.