Regulon.AI — PA-HB-1857 · PA HB 1857 (AI Transparency in Services)

Summary

Requires business entities that use artificial intelligence in consumer interactions directed at Pennsylvania residents to disclose the use of AI in a clear and conspicuous manner at the beginning of the interaction. When the AI-assisted interaction involves a high-impact decision — one that materially affects legal rights, employment, housing, credit, education, health care, or access to government benefits — the business must also inform the consumer of the right to request human review, which must be commenced within 14 days and completed within 28 days. Enforcement is exclusively by the Attorney General under the state Unfair Trade Practices and Consumer Protection Law, with civil penalties up to $2,500 per violation. The bill applies broadly to any for-profit business entity and contains no size or revenue thresholds.

Enforcement & Penalties

Enforcement Authority

The Attorney General may bring a civil action under the Unfair Trade Practices and Consumer Protection Law to enforce the act. Enforcement is agency-initiated by the AG. The statute does not explicitly create a private right of action but contains a savings clause stating that nothing in the enforcement section shall be construed to limit any other remedy available at law, preserving any pre-existing common law or statutory claims a consumer may have.

Penalties

Civil penalties not exceeding $2,500 per violation, brought by the Attorney General under the Unfair Trade Practices and Consumer Protection Law. The statute preserves any other remedy available at law but does not independently specify additional monetary or non-monetary remedies.

Who Is Covered

"Business entity." A for-profit corporation, limited liability company, partnership, limited liability partnership or Subchapter S corporation formed or organized under the laws of this Commonwealth or another jurisdiction.

Compliance Obligations 3 obligations · click obligation ID to open requirement page

T-01 AI Identity Disclosure · T-01.1 · Deployer · Automated DecisionmakingGeneral Consumer App

Section 3(a)-(b)

Plain Language

Any business entity that uses AI in any part of a consumer interaction must proactively disclose the use of AI in a clear and conspicuous manner at the beginning of the interaction. The disclosure must be in plain language, delivered orally or in writing, and must be reasonably accessible to individuals with disabilities or limited English proficiency. This is an unconditional disclosure — it applies whenever AI is used in any consumer interaction, regardless of whether the consumer could be misled. The trigger is extremely broad: any communication, transaction, or service directed at a Pennsylvania resident that involves AI in any part.

Statutory Text

(a) Duty of business entity.--A business entity that uses artificial intelligence in any part of a consumer interaction shall disclose the use of artificial intelligence in a clear and conspicuous manner to the consumer at the beginning of the consumer interaction. (b) Format.--The business entity shall deliver the disclosure in plain language, orally or in writing, which language must be reasonably accessible to an individual with a disability or limited English proficiency.

T-01 AI Identity Disclosure · T-01.3 · Deployer · Automated DecisionmakingGeneral Consumer App

Section 3(c)

Plain Language

When a consumer requests to speak with a human during an AI-assisted consumer interaction, the business entity must provide timely access to a human representative. This obligation is conditioned on a human representative being 'reasonably available,' which provides a practical escape valve for businesses that may not have human staff available at all times. The statute does not define what constitutes 'timely' or 'reasonably available,' leaving significant interpretive discretion.

Statutory Text

(c) Human representatives.--Upon request, the business entity shall provide the consumer with timely access to a human representative, if a human representative is reasonably available.

H-01 Human Oversight of Automated Decisions · H-01.3 H-01.4 · Deployer · Automated Decisionmaking

Section 4(a)-(c)

Plain Language

When an AI-assisted consumer interaction involves a high-impact decision, the business entity must (1) clearly and conspicuously notify the consumer of their right to request human review, and (2) honor any such request by commencing the review within 14 days and delivering a final decision within 28 days. High-impact decisions cover those materially affecting legal rights, employment, housing, credit, education, health care, or government benefits access. The human review right is consumer-invoked — it does not require pre-clearance by a human before the AI-informed decision takes effect. Unlike Section 3(c)'s access-to-human provision, this right has no 'reasonably available' qualifier and contains mandatory timelines.

Statutory Text

(a) Right to human review.--A consumer shall have the right to request that a human representing the business entity review any consumer interaction involving a high-impact decision. (b) Notice.--When the conditions under section 3 are met requiring the disclosure of the use of artificial intelligence in a consumer interaction and involve a high-impact decision, the business entity shall disclose in a clear and conspicuous manner that the consumer has a right to request a human review by the business entity involving the high-impact decision. (c) Time frame.--A business entity shall commence the human review not later than 14 days after the request for a human review is made. The human review shall be completed and the decision delivered to the requester not later than 28 days after the request for a human review is made.