Technology

This bill requires businesses in New Jersey to clearly inform consumers when they are interacting with generative artificial intelligence instead of a human during trade or commerce activities. Companies deploying AI systems that simulate human communication through text, audio, or visuals must provide a clear and conspicuous notice at the start of each interaction if the AI could reasonably be mistaken for a person. The law defines generative artificial intelligence as technology trained on data that creates non-scripted outputs with minimal human oversight and makes it unlawful for businesses to hide their use of such systems. Violations are treated as consumer fraud offenses, subjecting violators to potential fines, cease and desist orders, and civil penalties including punitive damages.

This New Jersey bill requires operators of artificial intelligence companion systems to clearly notify users that they are not communicating with a human. The notification must be provided verbally or in writing at the start of each interaction and repeated at least every three hours. The law defines AI companions as systems that simulate human relationships through personalized conversations, emotional engagement, and sustained dialogue. Operators who fail to provide these notifications face a $15,000 civil penalty for each violation. The bill applies to any business or individual offering AI companions for personal use within the state.

This bill requires school boards in New Jersey to create written policies for any video surveillance systems using artificial intelligence (AI) in schools. The policy must detail the system's benefits and challenges, specify what data is collected, explain how data will be used, outline access plans, and mandate visible signage in areas where surveillance occurs. School boards must also share this policy with parents and guardians of students. The law applies to districts using such AI surveillance systems and takes effect for the first full school year after enactment. It does not create new surveillance but sets clear guidelines for existing or future systems.