Bill > HB28

This bill, the Artificial Intelligence Transparency Act, aims to protect consumers by requiring clear communication and recourse when artificial intelligence (AI) systems are used in significant decisions or as interactive "companion products." An AI system is defined broadly as a machine-based system that can learn from data and generate outputs to influence environments. A "companion product" is a specific type of AI software designed for long-term, personalized conversations. The bill mandates that before an AI system is used to make a "consequential decision" – a decision with a significant impact on areas like education, employment, housing, or healthcare – the entity using the AI (the "deployer") must notify the consumer. If this decision is adverse to the consumer, the deployer must explain the reasons, the data used, the AI's role, and offer an opportunity for the consumer to correct data and appeal the decision to a human. For companion products, users must be clearly informed at the start of each interaction that they are speaking with an AI, not a human, and the AI cannot misrepresent itself. The state's department of justice will enforce these rules, and consumers can pursue legal action for violations, which are considered unfair or deceptive trade practices.