WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
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.
This act shall be known and may be cited as the Artificial IntelligenceArtificial intelligence"Artificial intelligence." As follows: (1) A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, including the ability to: (i) perceive real and virtual environments; (ii) abstract perceptions made under this paragraph into models through analysis in an automated manner; and (iii) use model inference to formulate options for information or action based on outcomes under subparagraphs (i) and (ii). (2) The term includes generative artificial intelligence.Section 2 Transparency in Services Act.
Establishes the short title of the act as the Artificial Intelligence Transparency in Services Act. No substantive obligations.
The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Artificial intelligenceArtificial intelligence"Artificial intelligence." As follows: (1) A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, including the ability to: (i) perceive real and virtual environments; (ii) abstract perceptions made under this paragraph into models through analysis in an automated manner; and (iii) use model inference to formulate options for information or action based on outcomes under subparagraphs (i) and (ii). (2) The term includes generative artificial intelligence.Section 2." As follows: (1) A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, including the ability to: (i) perceive real and virtual environments; (ii) abstract perceptions made under this paragraph into models through analysis in an automated manner; and (iii) use model inference to formulate options for information or action based on outcomes under subparagraphs (i) and (ii). (2) The term includes generative artificial intelligenceGenerative artificial intelligence"Generative artificial intelligence." A class of models that emulate the structure and characteristics of input data in order to generate derived synthetic content, including information such as images, videos, audio clips or text, that has been significantly modified or generated by algorithms, including by artificial intelligence.Section 2. "Business entityBusiness entity"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.Section 2." 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. "Consumer interactionConsumer interaction"Consumer interaction." A communication, transaction or service directed toward an individual resident of this Commonwealth.Section 2." A communication, transaction or service directed toward an individual resident of this Commonwealth. "Generative artificial intelligenceGenerative artificial intelligence"Generative artificial intelligence." A class of models that emulate the structure and characteristics of input data in order to generate derived synthetic content, including information such as images, videos, audio clips or text, that has been significantly modified or generated by algorithms, including by artificial intelligence.Section 2." A class of models that emulate the structure and characteristics of input data in order to generate derived synthetic content, including information such as images, videos, audio clips or text, that has been significantly modified or generated by algorithms, including by artificial intelligenceArtificial intelligence"Artificial intelligence." As follows: (1) A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, including the ability to: (i) perceive real and virtual environments; (ii) abstract perceptions made under this paragraph into models through analysis in an automated manner; and (iii) use model inference to formulate options for information or action based on outcomes under subparagraphs (i) and (ii). (2) The term includes generative artificial intelligence.Section 2. "High-impact decisionHigh-impact decision"High-impact decision." A decision or determination that materially affects an individual's legal rights, employment, housing, credit, education, health care or access to government benefits.Section 2." A decision or determination that materially affects an individual's legal rights, employment, housing, credit, education, health care or access to government benefits.
Section 2 defines the key terms used throughout the act. The definition of artificial intelligence is broad, covering any machine-based system that makes predictions, recommendations, or decisions influencing real or virtual environments, and expressly includes generative AI. The covered entity — business entity — encompasses all common for-profit business forms organized in Pennsylvania or any other jurisdiction. Consumer interaction is defined broadly as any communication, transaction, or service directed toward a Pennsylvania resident. High-impact decision covers decisions materially affecting legal rights, employment, housing, credit, education, healthcare, or government benefits access.
(a)–(b) 1 Duty of business entityBusiness entity"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.Section 2.--A business entityBusiness entity"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.Section 2 that uses artificial intelligenceArtificial intelligence"Artificial intelligence." As follows: (1) A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, including the ability to: (i) perceive real and virtual environments; (ii) abstract perceptions made under this paragraph into models through analysis in an automated manner; and (iii) use model inference to formulate options for information or action based on outcomes under subparagraphs (i) and (ii). (2) The term includes generative artificial intelligence.Section 2 in any part of a consumer interactionConsumer interaction"Consumer interaction." A communication, transaction or service directed toward an individual resident of this Commonwealth.Section 2 shall disclose the use of artificial intelligenceArtificial intelligence"Artificial intelligence." As follows: (1) A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, including the ability to: (i) perceive real and virtual environments; (ii) abstract perceptions made under this paragraph into models through analysis in an automated manner; and (iii) use model inference to formulate options for information or action based on outcomes under subparagraphs (i) and (ii). (2) The term includes generative artificial intelligence.Section 2 in a clear and conspicuous manner to the consumer at the beginning of the consumer interactionConsumer interaction"Consumer interaction." A communication, transaction or service directed toward an individual resident of this Commonwealth.Section 2. (b) Format.--The business entityBusiness entity"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.Section 2 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.
(c) 2 Human representatives.--Upon request, the business entityBusiness entity"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.Section 2 shall provide the consumer with timely access to a human representative, if a human representative is reasonably available.
Section 3 imposes the bill's core AI disclosure obligation: any business entity using AI in any part of a consumer interaction must disclose that use clearly and conspicuously 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.
Subsection (c) adds a separate obligation to provide timely access to a human representative upon consumer request, conditioned on reasonable availability. This is distinct from the human review right in Section 4 — it applies to any consumer interaction involving AI, not just high-impact decisions.
(a) 3 Right to human review.--A consumer shall have the right to request that a human representing the business entityBusiness entity"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.Section 2 review any consumer interactionConsumer interaction"Consumer interaction." A communication, transaction or service directed toward an individual resident of this Commonwealth.Section 2 involving a high-impact decisionHigh-impact decision"High-impact decision." A decision or determination that materially affects an individual's legal rights, employment, housing, credit, education, health care or access to government benefits.Section 2.
(b) 4 Notice.--When the conditions under section 3 are met requiring the disclosure of the use of artificial intelligenceArtificial intelligence"Artificial intelligence." As follows: (1) A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, including the ability to: (i) perceive real and virtual environments; (ii) abstract perceptions made under this paragraph into models through analysis in an automated manner; and (iii) use model inference to formulate options for information or action based on outcomes under subparagraphs (i) and (ii). (2) The term includes generative artificial intelligence.Section 2 in a consumer interactionConsumer interaction"Consumer interaction." A communication, transaction or service directed toward an individual resident of this Commonwealth.Section 2 and involve a high-impact decisionHigh-impact decision"High-impact decision." A decision or determination that materially affects an individual's legal rights, employment, housing, credit, education, health care or access to government benefits.Section 2, the business entityBusiness entity"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.Section 2 shall disclose in a clear and conspicuous manner that the consumer has a right to request a human review by the business entityBusiness entity"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.Section 2 involving the high-impact decisionHigh-impact decision"High-impact decision." A decision or determination that materially affects an individual's legal rights, employment, housing, credit, education, health care or access to government benefits.Section 2.
(c) 3 Time frame.--A business entityBusiness entity"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.Section 2 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.
Section 4 establishes the consumer's right to human review when a consumer interaction involving AI also involves a high-impact decision — one materially affecting legal rights, employment, housing, credit, education, healthcare, or government benefits. The business entity must clearly and conspicuously disclose the right to human review at the time of the AI disclosure under Section 3.
Subsection (c) imposes strict timelines: the human review must commence within 14 days and be completed with a decision delivered to the consumer within 28 days of the request. These timelines are aggressive compared to similar provisions in other state bills, which often allow 30–45 days for completion.
(a) Civil penalties.--The Attorney General may bring a civil action under the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, for civil penalties not exceeding $2,500 per violation to enforce this act.
(b) Private right of action.--Nothing in this section shall be construed to limit any other remedy available at law.
Section 5 establishes the enforcement mechanism: the Attorney General may bring civil actions under the Unfair Trade Practices and Consumer Protection Law for penalties up to $2,500 per violation. Subsection (b) is a savings clause preserving other remedies available at law — it does not independently create a private right of action under this act.
This act shall take effect in six months.
The act takes effect six months after enactment. No specific calendar date is stated because the bill has not yet been enacted.