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) 1. As used in this section the following terms shall have the following meanings: (a) "Generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean any artificial intelligence system whose primary function is to generate content, which can take the form of code, text, images, and more.Gen. Bus. Law § 399-zzzzzz(1)(a)" shall mean any 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. Artificial intelligence systems use 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) system whose primary function is to generate content, which can take the form of code, text, images, and more. (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. Artificial intelligence systems use 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. 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. Artificial intelligence systems use 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) systems use 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 two definitions that set the scope of the bill: generative artificial intelligence system and artificial intelligence. The generative AI system definition is notably broad, encompassing any AI system whose primary function is to generate content in any form — code, text, images, or otherwise. The underlying AI definition tracks closely with the NIST-derived definition used in several other state bills and federal frameworks.
(2) 1 The owner, licensee or operator of a generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean any artificial intelligence system whose primary function is to generate content, which can take the form of code, text, images, and more.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 any artificial intelligence system whose primary function is to generate content, which can take the form of code, text, images, and more.Gen. Bus. Law § 399-zzzzzz(1)(a) may be inaccurate and/or inappropriate.
Subdivision 2 imposes the bill's core obligation: the owner, licensee, or operator of a generative AI system must conspicuously display a warning on the system's user interface. The warning must be reasonably calculated to consistently apprise the user that the system's outputs may be inaccurate and/or inappropriate. The bill does not prescribe verbatim warning language, leaving operators discretion in crafting the disclosure provided it meets the conspicuousness and reasonable-calculation standards.
This obligation is distinct from AI identity disclosure requirements found in other state bills (e.g., California SB 243's disclosure that the user is interacting with AI). Here the focus is on output reliability — warning users that content may be wrong or unsuitable — rather than on the AI nature of the interlocutor.
(3) 2 Where such owner, licensee or operator of a generative artificial intelligence systemGenerative artificial intelligence system"Generative artificial intelligence system" shall mean any artificial intelligence system whose primary function is to generate content, which can take the form of code, text, images, and more.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 of the lesser of twenty-five dollars per user of such system or one hundred thousand dollars. Each calendar year during which a violation continues shall constitute a separate violation.
Subdivision 3 establishes the enforcement mechanism: a civil penalty of the lesser of $25 per user or $100,000 for failure to display the required warning. Each calendar year during which a violation continues constitutes a separate violation, creating a recurring annual liability. The bill does not designate an enforcing agency, does not create a private right of action, and does not specify injunctive relief or attorney fee recovery.