New York · Senate Bill · 2025–2026 Regular Session
SB8874
New York Senate Bill 8874 — An Act to amend the general business law, in relation to certain disclosures for use of artificial intelligence

Status ● Introduced Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE

How Is This Bill Enforced

Enforcement Authority
No enforcement mechanism, penalty, or private right of action is specified in the bill text. Enforcement would presumably fall under the New York Attorney General's general authority over the General Business Law.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
The bill specifies no penalties, damages, or remedies of any kind. Violations would presumably be enforceable under the Attorney General's existing authority over the General Business Law.

What This Bill Requires

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.

Statutory Text
Analysis & Obligations
Gen. Bus. Law § 399-m-1(1)
Definitions

(1)(a) "Artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" means systems that are computer programs that can perform tasks that usually require human intelligence, such as understanding natural language, recognizing images, making decisions, and learning from data.Gen. Bus. Law § 399-m-1(1)(a)" or "AI" means systems that are computer programs that can perform tasks that usually require human intelligence, such as understanding natural language, recognizing images, making decisions, and learning from data.

(1)(b) "Point of interactionPoint of interaction"Point of interaction" means where a customer first encounters artificial intelligence, including, but not limited to, a chat window, chatbot, website footer, or email.Gen. Bus. Law § 399-m-1(1)(b)" means where a customer first encounters artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" means systems that are computer programs that can perform tasks that usually require human intelligence, such as understanding natural language, recognizing images, making decisions, and learning from data.Gen. Bus. Law § 399-m-1(1)(a), including, but not limited to, a chat window, chatbot, website footer, or email.

Subdivision 1 establishes the two defined terms used by the bill: artificial intelligence and point of interaction. The AI definition is broad and functional, covering any computer program that can perform tasks usually requiring human intelligence. The point-of-interaction definition is non-exhaustive, encompassing chat windows, chatbots, website footers, and email.

Gen. Bus. Law § 399-m-1(2)–(3)
AI disclosure obligation at point of customer interaction
Deployer

(2) 1 Any person, firm, partnership, association or corporation or agent or employee thereof shall disclose the use of artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" means systems that are computer programs that can perform tasks that usually require human intelligence, such as understanding natural language, recognizing images, making decisions, and learning from data.Gen. Bus. Law § 399-m-1(1)(a) to influence customer interaction, including but not limited to: automated customer support; personalized ad targeting; product eligibility decisions; and AI-driven hiring tools.

(3) 1 Such disclosure shall be placed at the point of interactionPoint of interaction"Point of interaction" means where a customer first encounters artificial intelligence, including, but not limited to, a chat window, chatbot, website footer, or email.Gen. Bus. Law § 399-m-1(1)(b) with the customer, accompanied by a clear and conspicuous, in not less than twelve point bold faced type, plain-English description of the AI's role, with instructions on how to access human assistance, if applicable.

Subdivisions 2 and 3 impose the bill's sole operative obligation: any person or business entity using AI to influence customer interactions must disclose that use at the point of interaction. The disclosure must be in at least twelve-point bold-faced type, written in plain English, describe the AI's role, and include instructions for accessing human assistance if applicable.

The obligation applies broadly — the covered use cases are illustrative ("including but not limited to") and encompass automated customer support, personalized ad targeting, product eligibility decisions, and AI-driven hiring tools. Notably, the bill does not define a specific covered entity type; it applies to "any person, firm, partnership, association or corporation or agent or employee thereof."

Compliance actions 1 item
1
Any person, firm, partnership, association, corporation, or agent or employee thereof must disclose the use of artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" means systems that are computer programs that can perform tasks that usually require human intelligence, such as understanding natural language, recognizing images, making decisions, and learning from data.Gen. Bus. Law § 399-m-1(1)(a) to influence customer interactions at the point of interactionPoint of interaction"Point of interaction" means where a customer first encounters artificial intelligence, including, but not limited to, a chat window, chatbot, website footer, or email.Gen. Bus. Law § 399-m-1(1)(b) with the customer. The disclosure must be clear and conspicuous, in not less than twelve-point bold-faced type, include a plain-English description of the AI's role, and provide instructions on how to access human assistance if applicable. Covered uses include but are not limited to automated customer support, personalized ad targeting, product eligibility decisions, and AI-driven hiring tools.
T-01.1
NY SB 8874 § 2
Effective date

This act shall take effect on the one hundred twentieth day after it shall have become a law.

Section 2 provides that the act takes effect on the one hundred twentieth day after it becomes law. No staged effective dates or separate compliance deadlines are specified.

Passage Likelihood

Low
Status Introduced
Chamber No passage
Committee No action
Majority party No
Bipartisan No
Prior session None

Legislative History

2026-01-13 REFERRED TO INTERNET AND TECHNOLOGY

Entry Last Reviewed

2026-05-20
AI generated