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)–(b) "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. (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 the bill's two defined terms: generative artificial intelligence system and artificial intelligence. The generative AI definition focuses on self-supervised models that generate derived synthetic content. The broader AI definition covers any machine-based system that makes predictions, recommendations, or decisions, encompassing machine learning, large language models, NLP, and computer vision.
(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 clearly and conspicuously display a notice on the system's user interface 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.
Subdivision 2 imposes the bill's sole operative obligation: the owner, licensee, or operator of a generative AI system must clearly and conspicuously display a notice on the system's user interface that the system's outputs may be inaccurate. The bill does not define 'owner,' 'licensee,' or 'operator' as formal terms, instead relying on generic commercial party labels. The obligation is unconditional — it applies to every generative AI system, not only those in high-risk or consumer-facing contexts.
(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 notice 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 notice 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 provide the required notice. Each user not provided the notice constitutes a separate violation for each instance, creating potentially substantial aggregate exposure for widely deployed systems. The provision does not designate a specific enforcement agency or create a private right of action.