ALBANY, N.Y. — A new bill introduced in the New York State Assembly seeks to hold businesses accountable for misleading or harmful information provided by chatbots. The legislation, known as 2025-A222, would impose liability on companies that operate chatbot systems if their responses result in financial loss or other demonstrable harm to users.
The bill, introduced by Assemblymember Clyde Vanel, aims to regulate artificial intelligence-driven chat systems used as alternatives to human representatives. It would apply to businesses, organizations, and government entities with more than 20 employees that deploy chatbot systems for consumer interaction.
Third-party developers that license chatbot technology would not be held liable under the proposed law.
Under the legislation, businesses would be required to ensure their chatbots provide accurate information consistent with company policies, product details, and terms of service. The bill prohibits companies from avoiding liability by merely disclosing that a user is interacting with a chatbot rather than a human.
“A proprietor of a chatbot … may not disclaim liability of any kind where a chatbot provides materially misleading, incorrect, contradictory, or harmful information to a user that results in financial loss or other demonstrable harm,” the bill states. However, businesses could avoid liability if they correct the misinformation and substantially mitigate harm within 30 days of being notified.
If enacted, the law would take effect 90 days after being signed.
The bill reflects growing concerns over artificial intelligence accountability as chatbots become more integrated into customer service and online interactions.
