AI chatbots; unfair or deceptive trade practice for failing to notify consumer about AI chatbot; private right of action and enforcement provided for

HB 325 requires businesses using AI chatbots in commercial interactions to clearly tell consumers at the start of and periodically during conversations that they are communicating with a computer, not a human. This applies directly to companies offering goods or services online through AI chatbots that might make consumers believe they are talking to a person. Violating this rule would be considered an unfair or deceptive trade practice, allowing consumers to sue for up to $1,000 per violation or seek injunctive relief. The Alabama Attorney General can also enforce the law by seeking civil penalties of up to $5 million for violations.