AI Chatbots-Licensing, Safety, and Privacy.

This bill establishes a new licensing framework in North Carolina for artificial intelligence chatbots that handle health information, requiring operators to obtain permission from the Department of Justice before offering such services. To qualify for a license, companies must submit detailed technical documentation, prove insurance coverage, and demonstrate that their systems meet rigorous safety and efficacy standards through independent testing and expert review. Once licensed, operators are required to implement strong data security measures, report breaches within 24 hours, provide clear disclosures about the chatbot's artificial nature, and allow users to access or delete their personal data. The state's Department of Justice will enforce these rules by conducting regular physical and digital inspections of chatbot systems, including reviews of source code and data practices.