WHAT THIS BILL REGULATES · 3 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(1)–(8) § 1700. Definitions. As used in this article, the following terms shall have the following meanings: 1. "Artificial intelligenceArtificial intelligence"Artificial intelligence", "artificial intelligence technology", or "AI" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments, and that uses machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.Gen. Bus. Law § 1700(1)", "artificial intelligenceArtificial intelligence"Artificial intelligence", "artificial intelligence technology", or "AI" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments, and that uses machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.Gen. Bus. Law § 1700(1) technology", or "AI" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments, and that uses machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action. 2. "Generative artificial intelligenceGenerative artificial intelligence"Generative artificial intelligence" means a class of AI models that are self-supervised and emulate the structure and characteristics of input data to generate derived synthetic content, including, but not limited to, images, videos, audio, text, and other digital content.Gen. Bus. Law § 1700(2)" means a class of AI modelsAI model"AI model" means a component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine-learning techniques to produce outputs from a given set of inputs.Gen. Bus. Law § 1700(3) that are self-supervised and emulate the structure and characteristics of input data to generate derived synthetic content, including, but not limited to, images, videos, audio, text, and other digital content. 3. "AI modelAI model"AI model" means a component of an information system that implements artificial intelligence technology and uses computational, statistical, or machine-learning techniques to produce outputs from a given set of inputs.Gen. Bus. Law § 1700(3)" means a component of an information system that implements artificial intelligenceArtificial intelligence"Artificial intelligence", "artificial intelligence technology", or "AI" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments, and that uses machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.Gen. Bus. Law § 1700(1) technology and uses computational, statistical, or machine-learning techniques to produce outputs from a given set of inputs. 4. "AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4)" means a system using artificial intelligenceArtificial intelligence"Artificial intelligence", "artificial intelligence technology", or "AI" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments, and that uses machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.Gen. Bus. Law § 1700(1), generative artificial intelligenceGenerative artificial intelligence"Generative artificial intelligence" means a class of AI models that are self-supervised and emulate the structure and characteristics of input data to generate derived synthetic content, including, but not limited to, images, videos, audio, text, and other digital content.Gen. Bus. Law § 1700(2), and/or emotional recognition algorithmsEmotional recognition algorithms"Emotional recognition algorithms" means artificial intelligence that detects and interprets human emotional signals in text (using natural language processing and sentiment analysis), audio (using voice emotion AI), video (using facial movement analysis, gait analysis, or physiological signals), or a combination thereof.Gen. Bus. Law § 1700(7) to simulate social human interaction, by retaining information on prior interactions and userUser"User" means any person who uses an AI companion within the state and who is not an operator or agent or affiliate of the operator of the AI companion.Gen. Bus. Law § 1700(8) preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being. 5. "OperatorOperator"Operator" means any person, partnership, association, firm, or business entity, or any member, affiliate, subsidiary or beneficial owner of any partnership, association, firm, or business entity who operates or provides an AI companion.Gen. Bus. Law § 1700(5)" means any personPerson"Person" means any natural person.Gen. Bus. Law § 1700(6), partnership, association, firm, or business entity, or any member, affiliate, subsidiary or beneficial owner of any partnership, association, firm, or business entity who operates or provides an AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4). 6. "PersonPerson"Person" means any natural person.Gen. Bus. Law § 1700(6)" means any natural personPerson"Person" means any natural person.Gen. Bus. Law § 1700(6). 7. "Emotional recognition algorithmsEmotional recognition algorithms"Emotional recognition algorithms" means artificial intelligence that detects and interprets human emotional signals in text (using natural language processing and sentiment analysis), audio (using voice emotion AI), video (using facial movement analysis, gait analysis, or physiological signals), or a combination thereof.Gen. Bus. Law § 1700(7)" means artificial intelligenceArtificial intelligence"Artificial intelligence", "artificial intelligence technology", or "AI" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments, and that uses machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action.Gen. Bus. Law § 1700(1) that detects and interprets human emotional signals in text (using natural language processing and sentiment analysis), audio (using voice emotion AI), video (using facial movement analysis, gait analysis, or physiological signals), or a combination thereof. 8. "UserUser"User" means any person who uses an AI companion within the state and who is not an operator or agent or affiliate of the operator of the AI companion.Gen. Bus. Law § 1700(8)" means any personPerson"Person" means any natural person.Gen. Bus. Law § 1700(6) who uses an AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4) within the state and who is not an operatorOperator"Operator" means any person, partnership, association, firm, or business entity, or any member, affiliate, subsidiary or beneficial owner of any partnership, association, firm, or business entity who operates or provides an AI companion.Gen. Bus. Law § 1700(5) or agent or affiliate of the operator of the AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4).
Section 1700 establishes the defined-term dictionary for Article 47, covering the core regulated product (AI companion), the regulated party (Operator), and supporting terms including emotional recognition algorithms. The AI companion definition is functionally broad — it captures any AI system that simulates social human interaction by retaining user history and engaging in conversation on personal well-being matters. The operator definition extends beyond the entity directly providing the product to include affiliates, subsidiaries, and beneficial owners.
1 § 1701. Prohibitions and requirements. It shall be unlawful for any operatorOperator"Operator" means any person, partnership, association, firm, or business entity, or any member, affiliate, subsidiary or beneficial owner of any partnership, association, firm, or business entity who operates or provides an AI companion.Gen. Bus. Law § 1700(5) to operate or provide an AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4) to a userUser"User" means any person who uses an AI companion within the state and who is not an operator or agent or affiliate of the operator of the AI companion.Gen. Bus. Law § 1700(8) unless such AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4) contains a protocol for addressing possible suicidal ideation or self-harm expressed by a userUser"User" means any person who uses an AI companion within the state and who is not an operator or agent or affiliate of the operator of the AI companion.Gen. Bus. Law § 1700(8) to the AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4), that includes but is not limited to, a notification to the userUser"User" means any person who uses an AI companion within the state and who is not an operator or agent or affiliate of the operator of the AI companion.Gen. Bus. Law § 1700(8) that refers them to crisis service providers such as a suicide hotline, crisis text line, or other appropriate crisis services.
Section 1701 establishes a continuous operating prerequisite: an operator may not provide an AI companion to a user unless the AI companion contains a protocol for addressing possible suicidal ideation or self-harm expressed by a user. The protocol must include, at minimum, a notification referring the user to crisis service providers such as a suicide hotline or crisis text line. This is framed as a precondition to lawful operation — not merely a best practice — making it unlawful to operate without the protocol in place.
2 § 1702. Notifications. An operatorOperator"Operator" means any person, partnership, association, firm, or business entity, or any member, affiliate, subsidiary or beneficial owner of any partnership, association, firm, or business entity who operates or provides an AI companion.Gen. Bus. Law § 1700(5) shall provide a notification to a userUser"User" means any person who uses an AI companion within the state and who is not an operator or agent or affiliate of the operator of the AI companion.Gen. Bus. Law § 1700(8) at the beginning of any AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4) interaction and at least every three hours for continuing AI companionAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4) interactions thereafter, which states either verbally or in bold and capitalized letters of at least sixteen point type, the following: "THE AI COMPANIONAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4) (OR NAME OF THE AI COMPANIONAI companion"AI companion" means a system using artificial intelligence, generative artificial intelligence, and/or emotional recognition algorithms to simulate social human interaction, by retaining information on prior interactions and user preference, asking questions, providing advice, and engaging in simulated conversation on matters of personal well-being.Gen. Bus. Law § 1700(4)) IS A COMPUTER PROGRAM AND NOT A HUMAN BEING. IT IS UNABLE TO FEEL HUMAN EMOTION".
Section 1702 imposes an unconditional AI identity disclosure obligation at the start of every interaction and at least every three hours during continuing interactions. Unlike California SB 243, which conditions initial disclosure on a reasonable-person standard and reserves the unconditional trigger for known minors, this bill requires the disclosure for all users unconditionally. The statute prescribes verbatim disclosure language and specific formatting requirements: bold, capitalized, at least 16-point type (or verbal delivery). The prescribed text also includes the affirmative statement that the AI companion is unable to feel human emotion.
§ 1703. Enforcement. Any personPerson"Person" means any natural person.Gen. Bus. Law § 1700(6) aggrieved by a violation of section seventeen hundred one or seventeen hundred two of this article may bring an action in a court of competent jurisdiction for damages, equitable relief, and such other remedies as the court may deem appropriate.
Section 1703 creates a private right of action for any person aggrieved by a violation of sections 1701 or 1702. The court may award damages, equitable relief, and such other remedies as it deems appropriate. No statutory minimum or maximum damages are specified, and no attorney-fee shifting provision is included. This is the sole enforcement mechanism — the bill does not designate an agency enforcer or reporting obligation.
§ 1704. Severability. If any clause, sentence, paragraph, subdivision, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein.
Standard severability clause providing that if any provision of the article is adjudged invalid, the remainder is unaffected.
(2) 3 2. It shall constitute a deceptive act or practice in violation of section three hundred forty-nine of this article for any personPerson"Person" means any natural person.Gen. Bus. Law § 1700(6) to knowingly advertise, promote, label or publish a statement, display, image, offer or announcement of personalized algorithmic pricingPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing derived from or set by an algorithm that uses consumer data as defined in this section, which may vary among individual consumers or consumer populations.Gen. Bus. Law § 349-a(1)(f) using consumer dataConsumer data"Consumer data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific natural person or device, excluding location data.Gen. Bus. Law § 349-a(1)(d) specific to a particular individual without a clear and conspicuous disclosure that states: "THIS PRICE WAS SET BY AN ALGORITHMAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Gen. Bus. Law § 349-a(1)(a) USING YOUR PERSONAL DATA".
Section 349-a creates a new deceptive-act-or-practice prohibition under the existing § 349 framework. Any person who knowingly uses personalized algorithmic pricing — dynamic pricing derived from an algorithm using consumer data specific to a particular individual — must provide a clear and conspicuous disclosure with prescribed verbatim language: "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA". The disclosure must appear in the same medium as, and contemporaneous with, every advertisement or price display. Failure to disclose constitutes a deceptive act or practice under § 349, which carries its own enforcement regime (AG enforcement plus private right of action under § 349(h)).
(3)(b) 4 b. No personPerson"Person" means any natural person.Gen. Bus. Law § 1700(6), firm, partnership, association or corporation, or agent or employee thereof, shall use protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.Gen. Bus. Law § 396(3)(a) in setting a price for, offering, marketing, or selling any good or service if (1) the use of that data has the effect of withholding or denying any of the accommodations, advantages, and privileges accorded to others, or (2) the price for such good or service is different from the price offered to other individuals or groups based in whole or in part on the use of protected class dataProtected class data"Protected class data" means information about an individual person or groups of people that directly, in combination, or by implication identifies a characteristic that is legally protected from discrimination under the laws of this state or under federal law, including but not limited to ethnicity, national origin, age, disability, sex, sexual orientation, gender identity and expression, pregnancy outcomes and reproductive health care.Gen. Bus. Law § 396(3)(a).
Section 396(3) prohibits any person from using protected class data — information identifying characteristics protected under state or federal anti-discrimination law — in setting, offering, marketing, or selling any good or service where the use withholds accommodations or results in price differentiation based on that data. Aggrieved persons may file an action under Executive Law § 297 (the Human Rights Law enforcement provision), in addition to any other remedies otherwise available.