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) As used in this section, the term "artificial intelligenceartificial intelligence"artificial intelligence" 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 § 399-ss(1)" 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.
Subdivision 1 establishes the bill's sole defined term — artificial intelligence — using a broad, input-process-output formulation closely tracking the National Defense Authorization Act (2019) definition. The definition is not limited to generative AI; it encompasses any machine-based system that makes predictions, recommendations, or decisions and uses model inference. Notably, the bill does not define search engine, leaving a significant interpretive question about which platforms are covered.
(2)(a)–(b) 1 Where a search engine displays information which was generated by artificial intelligenceartificial intelligence"artificial intelligence" 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 § 399-ss(1), the search engine shall in clear, plain language in the same font size as such information, inform the user that such information was generated by artificial intelligenceartificial intelligence"artificial intelligence" 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 § 399-ss(1): (a) directly above such information; and (b) as a watermark across such information.
Subdivision 2 imposes the bill's core operative obligation: any search engine that displays AI-generated information must label it twice — once as a plain-language notice directly above the information and once as a watermark across the information. Both disclosures must be in clear, plain language and in the same font size as the AI-generated content. This is a dual-mode labeling requirement with no safe harbor and no knowledge qualifier — it applies whenever the information displayed was generated by artificial intelligence, regardless of the search engine operator's awareness.
(3) Any violation of this section shall be punishable by a civil penalty not to exceed five thousand dollars.
Subdivision 3 establishes the penalty for violations: a civil penalty not to exceed $5,000. The provision does not specify per-violation or per-day accrual, does not identify the enforcing authority, and does not create a private right of action. Enforcement would default to the Attorney General under general business law authority.