Bill > S07263

This bill, by adding a new section to the general business law, aims to hold operators of chatbots liable for damages caused when their AI systems impersonate licensed professionals. An "operator" is defined as anyone who owns, operates, or deploys a chatbot, but not third-party developers who license the technology. The bill specifies that a chatbot cannot knowingly impersonate a practitioner of a "covered profession," which includes various licensed fields like medicine, law, and engineering, in a way that would be illegal if done by a person. This means operators are deemed to know that a chatbot cannot lawfully practice these professions. Importantly, operators cannot avoid liability by simply notifying users they are interacting with a chatbot, though they are not liable if a user intentionally bypasses safeguards. The bill also mandates that operators must provide clear and conspicuous notice to users that they are interacting with an AI chatbot, with the notice appearing in the same language and a readable font size. The Attorney General is empowered to bring legal action against operators for violations, seeking civil penalties of up to $15,000 per day, and will maintain a website for public complaints.