New York Considers Holding Chatbot Operators Liable for AI Advice in Licensed Professions

New York is considering legislation that would hold chatbot operators liable for artificial intelligence responses in the realms of medicine, law, and mental health. Senate Bill S7263, which advanced from the Internet and Technology Committee, seeks to regulate AI chatbots that might impersonate licensed professionals. The bill specifically targets chatbots providing "substantive response, information, or advice" that would violate professional licensing laws.

If enacted, the law would allow users to file lawsuits against chatbot owners for violations, granting a private right of action. This provision is viewed as a crucial enforcement tool, potentially deterring malfeasance more effectively than state enforcement alone. The bill explicitly states that disclaimers informing users they are interacting with AI do not absolve chatbot owners of liability.

The legislation mandates that chatbot owners provide clear and conspicuous notice to users that they are interacting with an AI system. This notice must be in the same language as the chatbot and in a readable font size. Senator Kristen Gonzalez, who introduced the bill, frames it as protecting the public from potential harm caused by inaccurate or inappropriate AI-generated advice.

Critics, however, argue that the bill could stifle innovation and limit access to information, drawing parallels to censoring library resources. They contend that AI systems can increase quality and lower costs in areas like legal and medical advice. The bill has passed the Senate Internet and Technology Committee and now faces further hurdles, including full Senate passage, Assembly approval, and the Governor's signature. If passed, the law would take effect 90 days after being signed.