SF1886

The bill S.F. No. 1886 is a Minnesota consumer protection measure that requires businesses to disclose when individuals are communicating with artificial intelligence (AI) instead of a human.

Key Provisions:

1. Definition of AI:

   • AI is defined as a machine-based system that generates outputs (such as content, decisions, predictions, or recommendations) that can influence physical or virtual environments.

2. Disclosure Requirement:

   • Businesses must clearly disclose when a person is interacting with AI in textual or voice-based conversations.
     
   • Failing to do so is considered an unfair or deceptive trade practice.

3. Deceptive Practices:

   • It is deceptive for a business to mislead individuals into believing they are interacting with a human when they are actually engaging with AI.
     
   • If a reasonable individual mistakenly believes they are communicating with a human, the business must provide clear notification that they are interacting with AI.

4. Opt-Out Right:

   • Businesses must provide individuals with an option to interact with a human instead of AI.

5. Enforcement & Penalties:

   • Individuals harmed by a violation can sue for damages (up to $1,000), injunctive relief, and legal costs.
     
   • The Minnesota Attorney General can enforce the law and impose civil penalties, with a maximum fine of $5,000,000.

This bill aims to enhance transparency and protect consumers from deceptive AI interactions in business communications.