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) "Generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean a class of artificial intelligence 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 § 399-zzzzzz(1)(a)" shall mean a class of artificial intelligenceArtificial intelligence"Artificial intelligence" shall mean 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. This definition includes but is not limited to systems that use machine learning, large language model, natural language processing, and computer vision technologies, including generative AI.Gen. Bus. Law § 399-zzzzzz(1)(b) 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.
(1)(b) "Artificial intelligenceArtificial intelligence"Artificial intelligence" shall mean 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. This definition includes but is not limited to systems that use machine learning, large language model, natural language processing, and computer vision technologies, including generative AI.Gen. Bus. Law § 399-zzzzzz(1)(b)" shall mean 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. This definition includes but is not limited to systems that use machine learning, large language model, natural language processing, and computer vision technologies, including generative AI.
Subdivision 1 establishes two definitions. Generative artificial intelligence system is defined as a class of self-supervised AI models that generate derived synthetic content — a broad definition covering text, image, video, audio, and other digital content generators. Artificial intelligence is defined as a machine-based system that makes predictions, recommendations, or decisions influencing real or virtual environments, encompassing machine learning, large language models, natural language processing, and computer vision.
The bill does not formally define 'owner,' 'licensee,' or 'operator,' leaving those terms to their ordinary meaning under New York law.
(2) 1 The owner, licensee or operator of a generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean a class of artificial intelligence 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 § 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 class of artificial intelligence 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 § 399-zzzzzz(1)(a) may be inaccurate and/or inappropriate.
Subdivision 2 imposes the bill's sole operative obligation: the owner, licensee, or operator of a generative AI system must conspicuously display a warning on the system's user interface that is reasonably calculated to consistently apprise the user that the system's outputs may be inaccurate and/or inappropriate. The requirement is unconditional — it applies to all generative AI systems accessible to users, regardless of context, user age, or content type.
The warning must be displayed on the system's user interface, suggesting it must be visible to end users during their interaction rather than buried in terms of service or documentation. The standard — 'reasonably calculated to consistently apprise' — implies an ongoing, persistent disclosure rather than a one-time notice.
(3) Where such owner, licensee or operator of a generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean a class of artificial intelligence 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 § 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 up to one thousand dollars for each violation. Each user the owner, licensee or operator fails to provide a warning to shall constitute a separate violation for each instance.
Subdivision 3 establishes the enforcement mechanism: a civil penalty of up to $1,000 per violation for failure to display the required warning. Each user not provided the warning constitutes a separate violation for each instance, creating potential for significant aggregate liability for widely deployed systems.
The bill does not designate a specific enforcement authority (e.g., the Attorney General or a particular agency), which creates ambiguity about how enforcement actions would be initiated.
This act shall take effect on the ninetieth day after it shall have become a law.
The act takes effect on the ninetieth day after it becomes law. No specific calendar date is set because the bill has not been enacted.