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S08874 Summary:

BILL NOS08874
 
SAME ASNo Same As
 
SPONSORRHOADS
 
COSPNSR
 
MLTSPNSR
 
Add §399-m-1, Gen Bus L
 
Requires disclosure of the use of artificial intelligence in customer services at the point of interaction with the customer; defines terms.
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S08874 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8874
 
                    IN SENATE
 
                                    January 13, 2026
                                       ___________
 
        Introduced  by  Sen.  RHOADS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Internet and Technology
 
        AN ACT to amend the general business law, in relation to certain disclo-
          sures for use of artificial intelligence
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  399-m-1 to read as follows:
     3    §  399-m-1.  Disclosures in use of artificial intelligence in customer
     4  services. 1. For the purposes of this section, the following terms shall
     5  have the following meanings:
     6    (a) "Artificial intelligence" or "AI" means systems that are  computer
     7  programs that can perform tasks that usually require human intelligence,
     8  such as understanding natural language, recognizing images, making deci-
     9  sions, and learning from data.
    10    (b)  "Point  of  interaction"  means where a customer first encounters
    11  artificial intelligence, including, but not limited to, a  chat  window,
    12  chatbot, website footer, or email.
    13    2.  Any person, firm, partnership, association or corporation or agent
    14  or employee thereof shall disclose the use of artificial intelligence to
    15  influence customer interaction, including but not limited to:  automated
    16  customer  support;  personalized ad targeting; product eligibility deci-
    17  sions; and AI-driven hiring tools.
    18    3. Such disclosure shall be placed at the point  of  interaction  with
    19  the  customer,  accompanied by a clear and conspicuous, in not less than
    20  twelve point bold faced type,  plain-English  description  of  the  AI's
    21  role,  with  instructions on how to access human assistance, if applica-
    22  ble.
    23    § 2. This act shall take effect on the one hundred twentieth day after
    24  it shall have become a law.
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13490-01-5
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