Bill > S624

This bill establishes comprehensive regulations for AI chatbots in North Carolina, focusing on licensing, safety, and privacy protections, particularly for chatbots dealing with health and sensitive information. The legislation creates two new legal chapters: one for licensing chatbots and another for safety and privacy standards. Under the licensing provisions, any chatbot handling health information must obtain a special license from the North Carolina Department of Justice, which requires detailed documentation of the chatbot's technical architecture, data practices, security measures, and compliance with regulations. The bill mandates that licensed chatbots must implement robust data protection protocols, including encryption, user consent mechanisms, and the ability for users to access and delete their personal data. Chatbot operators must also disclose the artificial nature of the system, its limitations, and potential risks. The safety and privacy chapter introduces a "duty of loyalty" for chatbot platforms, requiring them to prioritize user best interests, prevent emotional dependence, maintain transparency about the chatbot's non-human nature, and protect sensitive personal information. Platforms must obtain explicit user consent, use clear and accessible terms of service, and implement strict data de-identification and encryption practices. Violations can result in significant civil penalties, with the Attorney General empowered to bring actions on behalf of state residents and individual users able to seek damages. The bill is set to become effective on January 1, 2026, providing time for platforms to adapt to the new requirements.

https://www.ncleg.gov/BillLookUp/2025/S624