NY Bill Would Bar AI Chatbots From Providing ‘Substantive’ Medical or Legal Responses

According to Statescoop, the bill further mandates that chatbot owners provide “clear, conspicuous, and explicit” notice to users that they are interacting with an AI system, with the notice displayed in the same language as the chatbot and in a readable font size. It emphasizes, however, that providing such notice does not absolve the owner of liability for violating the law’s prohibitions.

In addition to state licensing authorities, the bill also would create a private right of action to bring civil lawsuits against chatbot owners – a step considered a key enforcement mechanism by advocates for AI guardrails who argue it can have a significant deterrent effect against malfeasance beyond that provided by state enforcement efforts.

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New York has been among the most active states is seeking to regulate AI systems and companies, putting it at odds with both the AI industry and the federal government’s efforts to limit or eliminate state restrictions on AI technology. The New York RAISE Act enacted last year requiring companies to submit detailed AI safety and mitigation protocols to state authorities drew the particular ire of the industry.

Read more: Federal Judge Rules AI Chatbot Conversations Can Be Seized as Evidence in Fraud Cases 

The legislation’s author, Assemblymember Alex Bores, now running for a seat in Congress, this year became the first target of a new anti-regulatory super PAC funded by AI executives and investors, including A19z and OpenAI president Greg Brockman. The super PAC, Leading the Future which has committed $10 million to a campaign to deny Bores the Democratic nomination for the U.S. House seat being vacated by the retiring Jerry Nadler.

New York lawmakers are showing no signs of being deterred, however. The professional services bill voted on last week, in fact, is part of a larger legislative package that includes measures to protect children from “unsafe” features in chatbots, and regulating certain online platforms deemed to have weak privacy protections for minors. Other bills in the package include a mandate for notices on generative AI systems and new rules for the handling of biometric data and “synthetic content creations.”

In a news release, the chair of the Internet and Technology Committee and author of the professional services bill, Sen. Kristen Gonzalez said, “we have a responsibility to make sure innovation doesn’t come at the expense of New Yorkers’ safety, especially our kids…  People deserve real care from real people. They deserve transparency, accountability, and the promise that their data is secure while utilizing technology.”

Gonzalez’s bill now goes the full Senate but is yet to receive a committee vote in the State Assembly. If eventually passed, it would go into effect 90 days after being signed by the governor.