Commercial Chatbot Disclosure Laws Enacted

We’ve previously discussed the rising regulation and risk around AI chatbots. Many of these regulations apply to specific uses such as chatbots in mental health care or “companion bots.” However, a new class of chatbot regulation is coming into force that affects more mundane uses, such as customer service-oriented bots. These laws require companies to disclose to consumers that they are communicating with an AI and not an actual human. A recent DLA Piper memo describes the laws stating:

“A growing number of state laws require companies deploying chatbots for one-to-one consumer interactions to disclose that the consumers are not communicating with humans. The laws all vary, however, in terms of (1) the commercial context in which they apply and (2) the details of when and how a disclosure must be made.”

The memo notes that such laws have passed in Maine, New Jersey, California, Colorado, and Utah, noting that more regulation may be on the way:

“More state laws requiring AI-related disclosures are likely on the way. If past is prologue, new laws in this area will likely contain elements of, but not be identical to, those that other states have already passed. Meanwhile, the tug of war between state and federal AI regulation will continue, and state attorneys general may use broader consumer protection laws in AI-related advertising contexts.”

Companies should review their use of AI chatbots in light of such legislation and prepare to comply with further disclosure requirements.