AI Frontier Institute

Relating To Artificial Intelligence.

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Hawaii S.B. 640 (33rd Legislature, 2025) amends Chapter 481B of the Hawaii Revised Statutes by adding a new part on artificial intelligence chatbots. Under Section 2, any corporation, organization, or individual engaged in a commercial transaction or trade practice is prohibited from using an AI chatbot or similar human-mimicking technology in textual or spoken consumer conversations without first providing a clear and conspicuous disclosure that the consumer is interacting with a chatbot rather than a natural person. Violations are classified as unfair or deceptive acts or practices. The bill establishes a private right of action: injured individuals may sue for the greater of $1,000 or treble damages, plus attorneys' fees and costs, and may seek injunctive relief. In class action or de facto class action suits the $1,000 minimum does not apply, treble-damage excess over compensatory damages is allocated at court discretion to promote deterrence, and total damages are capped at $10,000,000. The Attorney General may also petition for injunctive relief. Civil penalties for violations may reach up to $5,000,000. The Act takes effect upon approval.

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