SB 328 requires all Alabama state agencies to conduct quarterly AI-assisted reviews of their rules and guidance documents starting April 2027. The AI systems must analyze rules for conflicts with other laws, unnecessary costs, duplication, plain language compliance, and economic impacts, but human staff must review and approve all AI recommendations before changes are made. Agencies must also publish annual reports detailing review results, cost savings, and rule modifications. This affects every state agency (not just those under the Alabama Administrative Procedure Act) by mandating a new process for regulatory oversight. The bill aims to streamline rules and reduce compliance burdens through structured AI analysis, with implementation beginning October 2026.
SB 63 prohibits Alabama health insurers from using artificial intelligence (AI) exclusively to decide coverage for medical services. It requires final decisions to deny or reduce coverage to be made by a licensed physician or qualified health care professional, not AI alone. Insurers must disclose to enrollees when AI is used in coverage determinations and annually certify their AI tools comply with fairness and transparency standards. The Alabama Department of Insurance can investigate and impose penalties for violations of these requirements.
HB 280 establishes the Alabama Health Command, an independent agency, to designate a virtual AI-assisted health platform for rural communities. The platform would provide non-diagnostic health management services - such as wellness education, appointment scheduling, and follow-up assistance - via an avatar-based system, connecting rural patients with local providers without diagnosing or treating medical conditions. The agency must set standards for patient privacy, data security, and preventing the platform from substituting for licensed medical care. Rural hospitals and clinics using this platform would be exempt from competitive bidding requirements, and the bill would take effect on October 1, 2026.
HB 324 requires AI chatbot providers to verify the age of all users through a strict process (like government ID, not just birth dates) and prevents minors under 19 from accessing chatbots with human-like features (e.g., those suggesting sentience or emotional bonding). It mandates providers to offer a simplified version without such features to minors if reasonable, implement safety protocols to detect and respond to emergencies (like self-harm), and limit data collection to what’s necessary for legitimate purposes. Therapeutic chatbots meeting specific standards, prescribed by a licensed psychiatrist, may still be used by minors. The bill directly affects AI chatbot providers and minors, creating enforceable requirements without banning chatbots entirely.
SB 129 requires developers of AI tools that create images, videos, or audiovisual content to clearly disclose when output is AI-generated. This applies to all AI systems sold or used in Alabama, including those licensed to third parties, and mandates disclosures that are visible, permanent, and unavoidable in the same format as the content. Violations would be treated as deceptive trade practices under Alabama law, allowing both the Attorney General and affected individuals to seek legal action. The bill takes effect on October 1, 2026, with a 30-day cure period before enforcement actions.
HB 329 requires all Alabama public K-12 students to complete an approved computer science course to graduate, starting with the 2032 graduating class. The bill expands the definition of computer science to include AI and algorithmic processes, and establishes standards for approved courses that must focus on creating technology, not just using it. Approved computer science credits can count toward math, science, or career education graduation requirements without increasing the total credit count. School districts must implement phased course offerings: high schools by 2020-2021, middle schools by 2021-2022, and elementary schools by 2022-2023. The State Department of Education will develop course standards and maintain an approved course list.
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.
