AI Chatbots - Licensing/Safety/Privacy.

SB 624 requires licenses for artificial intelligence chatbots that handle health information in North Carolina, directly affecting developers and operators of such tools. The bill mandates strict licensing applications detailing technical security, data practices, and risk management, with the Department of Justice reviewing for safety, compliance, and efficacy. Licensees must implement encryption, report data breaches within 24 hours, obtain explicit user consent, allow data access/deletion, and demonstrate clinical effectiveness through peer-reviewed studies. It also requires annual third-party audits, quarterly safety reports, and clear disclosures about the chatbot's artificial nature and limitations. The law applies only to chatbots substantially handling health data, including medical conditions, mental health, reproductive care, genetic information, and location data tied to health services.