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Senate Bill S8874

2025-2026 Legislative Session

Relates to the use of artificial intelligence in customer services

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Current Bill Status - In Senate Committee Internet And Technology Committee

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2025-S8874 (ACTIVE) - Details

Current Committee:
Senate Internet And Technology
Law Section:
General Business Law
Laws Affected:
Add §399-m-1, Gen Bus L

2025-S8874 (ACTIVE) - Summary

Requires disclosure of the use of artificial intelligence in customer services at the point of interaction with the customer; defines terms.

2025-S8874 (ACTIVE) - Sponsor Memo

2025-S8874 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8874
 
                             I N  S E N A T E
 
                             January 13, 2026
                                ___________
 
 Introduced  by  Sen.  RHOADS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 AN ACT to amend the general business law, in relation to certain disclo-
   sures for use of artificial intelligence
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 399-m-1 to read as follows:
   §  399-M-1.  DISCLOSURES IN USE OF ARTIFICIAL INTELLIGENCE IN CUSTOMER
 SERVICES. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A) "ARTIFICIAL INTELLIGENCE" OR "AI" MEANS SYSTEMS THAT ARE  COMPUTER
 PROGRAMS THAT CAN PERFORM TASKS THAT USUALLY REQUIRE HUMAN INTELLIGENCE,
 SUCH AS UNDERSTANDING NATURAL LANGUAGE, RECOGNIZING IMAGES, MAKING DECI-
 SIONS, AND LEARNING FROM DATA.
   (B)  "POINT  OF  INTERACTION"  MEANS WHERE A CUSTOMER FIRST ENCOUNTERS
 ARTIFICIAL INTELLIGENCE, INCLUDING, BUT NOT LIMITED TO, A  CHAT  WINDOW,
 CHATBOT, WEBSITE FOOTER, OR EMAIL.
   2.  ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION OR AGENT
 OR EMPLOYEE THEREOF SHALL DISCLOSE THE USE OF ARTIFICIAL INTELLIGENCE TO
 INFLUENCE CUSTOMER INTERACTION, INCLUDING BUT NOT LIMITED TO:  AUTOMATED
 CUSTOMER  SUPPORT;  PERSONALIZED AD TARGETING; PRODUCT ELIGIBILITY DECI-
 SIONS; AND AI-DRIVEN HIRING TOOLS.
   3. SUCH DISCLOSURE SHALL BE PLACED AT THE POINT  OF  INTERACTION  WITH
 THE  CUSTOMER,  ACCOMPANIED BY A CLEAR AND CONSPICUOUS, IN NOT LESS THAN
 TWELVE POINT BOLD FACED TYPE,  PLAIN-ENGLISH  DESCRIPTION  OF  THE  AI'S
 ROLE,  WITH  INSTRUCTIONS ON HOW TO ACCESS HUMAN ASSISTANCE, IF APPLICA-
 BLE.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13490-01-5

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