AI Chatbot Liability
January 28, 2025 01:52 PM to All House Members
Circulated By
Representative Craig Williams
R House District 160
Memo
I am reintroducing legislation to protect consumers from incorrect information given to the public by companies using AI Chatbots (Formerly HB2291). The rapid adoption of artificial intelligence (AI) technologies has brought with it added consumer complexities in the marketplace.
In a recent case involving a Canadian airline, the company’s AI-powered chatbot misrepresented the company’s bereavement policy to a customer. The customer relied on the incorrect chatbot information to his financial detriment. The airline refused to honor the representations made by its AI-chatbot, and the customer was forced to sue for damages. The airline’s argument that it should not be held liable because the chatbot is a separate legal entity was ultimately rejected in court.
To protect consumers in our Commonwealth from such disputes with companies making use of AI technology, this legislation clarifies that business entities are liable for representations made by artificial intelligence to consumers, via chatbots or other technologies, when utilized as a tool by the company to avoid human interaction.
There can be no question that emerging technologies should be deployed to manage consumer concerns, complaints and questions. Businesses, however, must acknowledge that they are bound by the information provided by these technologies. Please join me in co-sponsoring this important piece of legislation.
In a recent case involving a Canadian airline, the company’s AI-powered chatbot misrepresented the company’s bereavement policy to a customer. The customer relied on the incorrect chatbot information to his financial detriment. The airline refused to honor the representations made by its AI-chatbot, and the customer was forced to sue for damages. The airline’s argument that it should not be held liable because the chatbot is a separate legal entity was ultimately rejected in court.
To protect consumers in our Commonwealth from such disputes with companies making use of AI technology, this legislation clarifies that business entities are liable for representations made by artificial intelligence to consumers, via chatbots or other technologies, when utilized as a tool by the company to avoid human interaction.
There can be no question that emerging technologies should be deployed to manage consumer concerns, complaints and questions. Businesses, however, must acknowledge that they are bound by the information provided by these technologies. Please join me in co-sponsoring this important piece of legislation.
Legislation
Document - Introduced as HB 518
Last updated on January 28, 2025 01:53 PM
AI Chatbot Liability
January 28, 2025 01:52 PM to All House Members
Circulated By
WILLIAMS
Memo
I am reintroducing legislation to protect consumers from incorrect information given to the public by companies using AI Chatbots (Formerly HB2291). The rapid adoption of artificial intelligence (AI) technologies has brought with it added consumer complexities in the marketplace.
In a recent case involving a Canadian airline, the company’s AI-powered chatbot misrepresented the company’s bereavement policy to a customer. The customer relied on the incorrect chatbot information to his financial detriment. The airline refused to honor the representations made by its AI-chatbot, and the customer was forced to sue for damages. The airline’s argument that it should not be held liable because the chatbot is a separate legal entity was ultimately rejected in court.
To protect consumers in our Commonwealth from such disputes with companies making use of AI technology, this legislation clarifies that business entities are liable for representations made by artificial intelligence to consumers, via chatbots or other technologies, when utilized as a tool by the company to avoid human interaction.
There can be no question that emerging technologies should be deployed to manage consumer concerns, complaints and questions. Businesses, however, must acknowledge that they are bound by the information provided by these technologies. Please join me in co-sponsoring this important piece of legislation.
In a recent case involving a Canadian airline, the company’s AI-powered chatbot misrepresented the company’s bereavement policy to a customer. The customer relied on the incorrect chatbot information to his financial detriment. The airline refused to honor the representations made by its AI-chatbot, and the customer was forced to sue for damages. The airline’s argument that it should not be held liable because the chatbot is a separate legal entity was ultimately rejected in court.
To protect consumers in our Commonwealth from such disputes with companies making use of AI technology, this legislation clarifies that business entities are liable for representations made by artificial intelligence to consumers, via chatbots or other technologies, when utilized as a tool by the company to avoid human interaction.
There can be no question that emerging technologies should be deployed to manage consumer concerns, complaints and questions. Businesses, however, must acknowledge that they are bound by the information provided by these technologies. Please join me in co-sponsoring this important piece of legislation.
Document
Introduced as HB 518
Last Updated
January 28, 2025 01:53 PM
Generated 03/22/2025 10:25 PM