AI Frontier Institute

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Illinois SB0317, titled the Consumer Artificial Intelligence Notice Act, requires any business that uses a conversational customer service AI system in a chat or voice interface to provide consumers with a clear and conspicuous disclosure at the start of the interaction that they are communicating with an automated system and not a human (Section 10). The disclosure must appear as a separate message in the same language, font size, and color as the consumer's own messages, or be verbally called to attention (Section 5). The Act does not apply to AI used solely for internal purposes such as analytics, fraud detection, inventory management, or pricing, and does not hold a business liable for a third-party AI system's design or outputs as long as the business complies with the disclosure requirement (Section 15). Violations of Section 10 constitute an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act, and enforcement may be brought by the Attorney General or any county State's Attorney, with at least 7 days' advance notice given before action is filed and an opportunity for voluntary compliance (Section 20). Consumers who suffer actual damages may bring a private action under Section 10a of the Consumer Fraud and Deceptive Business Practices Act (Section 25). The bill designates AI-disclosure regulation in commercial consumer communications as an exclusive state power, preempting home rule units from enacting their own rules in this area (Section 30). The Consumer Fraud and Deceptive Business Practices Act is also amended by adding Section 2MMMM to incorporate violations of this Act as unlawful practices (Section 900).

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