AI Frontier Institute

FRAUD-ARTIFICIAL INTELLIGENCE

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Illinois HB4988, introduced by Rep. Nabeela Syed in the 104th General Assembly, amends the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505) by adding new Section 2MMMM. The bill requires owners, licensees, or operators of generative artificial intelligence systems to conspicuously display a standardized warning on the system's user interface informing users of key AI limitations. The prescribed warning language states that AI does not think or understand meaning, that it generates responses by recognizing statistical patterns in text data, and that it can produce confident-sounding responses containing errors, inaccuracies, or fabricated information. Under Section 2MMMM(c), each day the required warning is not displayed constitutes a separate violation of the Act. Under Section 2MMMM(d), any such violation is classified as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. The bill defines 'generative artificial intelligence' as an automated computing system that produces outputs simulating human-produced content—including text, images, multimedia, and other content—in response to human prompts or queries.

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