AI Chatbot Penalty Enhancement Act
Introduced and referred to Codes Committee
Bill Status
What This Bill Does
Senate Bill S5668 would create new criminal penalties for AI companies whose chatbots provide information that "results in harm" to a user. Penalties include fines up to $50,000 per incident and potential criminal liability for company officers.
Why It's Dangerous
The bill's definition of "harm" is extraordinarily vague. It could encompass any situation where someone followed AI-generated information and experienced a negative outcome — even if the information was accurate and the person made their own decisions.
This vagueness would create a chilling effect on all AI development and deployment in New York. Companies would either withdraw from the market entirely or severely restrict what their AI tools can discuss, effectively creating the same information blackout as S7263 through a different mechanism.
Who Gets Hurt
New York's Tech Economy
Companies would relocate AI development out of New York rather than risk criminal liability for their executives. This would cost the state thousands of high-paying jobs.Consumers
Fewer AI tools available in New York means less competition, worse products, and higher prices for the professional services people would be forced to use instead.Innovation
Researchers and startups would avoid New York, stunting the state's ability to lead in one of the most important technology sectors of the century.What We're Asking For
- Replace criminal penalties with civil enforcement through the Attorney General's office
- Define "harm" precisely to cover actual damages from demonstrably false information, not negative outcomes from accurate information
- Create a safe harbor for companies that implement reasonable safeguards, disclosures, and correction mechanisms
- Establish proportional penalties based on company size and severity of actual harm
Sign the Open Letter
Add your name to oppose S5668. Your signature matters.
Contact Your Representatives
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