Purpose of the Bill

The primary purpose of this bill is to protect consumers by prohibiting the use of artificial intelligence (AI) to dynamically set product prices. This is to prevent unfair pricing practices influenced by AI.

Main Provisions

• Definition of Artificial Intelligence: The bill defines AI as a machine-based system that processes input to generate outputs, like decisions or recommendations, with the ability to influence various environments, whether physical or virtual.
• Prohibition on Dynamic Pricing: The bill specifically prohibits individuals or businesses from using AI to adjust, fix, or control the prices of products in real-time. This includes considerations based on market demand, competitor's prices, inventory levels, and customer behavior.
• Enforcement: The enforcement of this prohibition will be under the jurisdiction of the Minnesota Attorney General, according to existing legal frameworks.

Significant Changes to Existing Law

• This bill introduces a new legal provision specifically targeting the use of AI in pricing strategies, which is not presently covered in Minnesota Statutes chapter 325F. This represents a shift towards more detailed regulation of AI's role in consumer product pricing.

Relevant Terms

artificial intelligence, dynamic pricing, machine-based system, market demands, competitor prices, inventory levels, customer behavior, consumer protection, real-time pricing, Attorney General enforcement.