CONSUMERS/PROTECTION: Provides for consumer protection practices for customers engaging with artificial intelligence (OR SEE FISC NOTE GF EX)

HB 425 requires businesses in Louisiana to clearly inform consumers when they are interacting with an AI chatbot or automated system (like an AI agent or avatar) instead of a human. It directly affects companies using such technology in customer interactions within the state. The bill prohibits deceptive practices by banning unmarked AI interactions or situations where consumers could reasonably believe they are speaking with a human. Consumers harmed by violations can sue for actual damages plus up to $1,000 per incident, and businesses face civil penalties of up to $5 million for noncompliance. The law aims to prevent misleading AI interactions through mandatory disclosure and legal remedies.