AI Frontier Institute

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

View primary source →

New York Senate Bill 8874 (introduced January 13, 2026 by Sen. Rhoads and referred to the Committee on Internet and Technology) has not been enacted. If enacted, it would add a new section 399-m-1 to the general business law on disclosures when AI is used in customer services. Section 399-m-1(1) defines "artificial intelligence" as computer systems that perform tasks usually requiring human intelligence, such as understanding language, recognizing images, making decisions and learning from data. It defines "point of interaction" as where a customer first encounters AI, such as a chat window, chatbot, website footer or email. Under subdivision 2, any person, firm, partnership, association or corporation, or its agent or employee, would have to disclose use of AI to influence customer interaction. Examples given are automated customer support, personalized ad targeting, product eligibility decisions and AI-driven hiring tools. Under subdivision 3, the disclosure must be placed at the point of interaction. It must be clear and conspicuous, in at least twelve point bold type, and give a plain-English description of the AI's role. Where applicable, it must also say how to reach human assistance. Section 2 says the act would take effect on the 120th day after it becomes law. The text states no enforcement mechanism or penalties.

← Back to the tracker