CONSUMER ARTIFICIAL INTELLIGENCE NOTICE ACT

Session: 104th General Assembly
Year: 2025
Bill #: SB0317
Category: Artificial Intelligence and Data Centers
Position: Under Review
Mandate?
Revenue Loss?
Authority Preemption? Yes

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Summary as Introduced

Amends the Consumer Legal Funding Act. Makes a technical change in a Section concerning the short title.

Staff Analysis

Bill as Introduced

Amends the Consumer Legal Funding Act. Makes a technical change in a Section concerning the short title.

Senate Floor Amendment 1

The amendment creates the Consumer Artificial Intelligence Notice Act to require businesses that use conversational artificial intelligence systems to interact with consumers through a chat interface to clearly disclose at the outset of the interaction that the consumer is communicating with an automated system rather than a human. Violations of the disclosure requirement would constitute an unlawful practice under the Illinois Consumer Fraud and Deceptive Business Practices Act. The bill also preempts home rule authority on the subject and makes conforming changes to the Consumer Fraud and Deceptive Business Practices Act.

Senate Floor Amendment 2 

Legislation approved by the Illinois General Assembly would create the Consumer Artificial Intelligence Notice Act, requiring businesses that use conversational artificial intelligence systems in customer service chat interfaces to clearly disclose when a consumer is interacting with an automated system rather than a human representative. The bill provides that violations would constitute unlawful practices under the Illinois Consumer Fraud and Deceptive Business Practices Act and establishes procedures for notice of violations and enforcement. The legislation also includes explicit home rule preemption language, indicating that regulation of these AI disclosure requirements would be governed at the State level.

From a county government perspective, the legislation could have indirect implications for counties and county-affiliated entities that use AI-enabled customer service or public information tools on websites or digital platforms. Counties utilizing automated chat systems for public health information, permitting assistance, court services or other constituent interactions may need to ensure that those systems include clear disclosures identifying AI-generated communications. The amendment's home rule preemption language is also noteworthy because it would prohibit home rule units from adopting separate or conflicting local regulations governing AI disclosure requirements, reinforcing a statewide regulatory framework for consumer-facing artificial intelligence systems.



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