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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
artificial intelligence service; disclosures; requirements
Purpose
Effective October 1, 2027, prescribes requirements and prohibitions that an operator of a publicly available conversational artificial intelligence (AI) service must comply with, including requirements relating to the use of a conversational AI service by minor account holders.
Background
The federal National Artificial Intelligence Initiative Act of 2020 (Act) codified the establishment of a national AI initiative and associated federal offices and committees. The Act directed the Secretary of Commerce, in coordination with other federal agencies, including the National Institute of Standards and Technology, the Department of Energy and the Department of Homeland Security, to establish guidelines and best practices for developing safe, secure and trustworthy AI systems, with the aim of promoting consensus industry standards. Artificial Intelligence is a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments. AI systems use machine and human-based inputs to: 1) perceive real and virtual environments; 2) abstract such perceptions into models through analysis in an automated manner; and 3) use model inference to formulate options for information or action (15 U.S.C. §§ 9401 et seq).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires each operator of a publicly available conversational AI service to clearly and conspicuously disclose to a minor account holder that the minor is interacting with a conversational AI service by use of a persistent visible disclaimer or a disclaimer at the beginning of each session and appearing at least every three hours during a continuous interaction with the AI service.
2. Prohibits an operator from providing a user with points or similar rewards at unpredictable intervals with the intent to encourage increased engagement with the conversational AI, if the operator knows that the account holder is a minor.
3. Requires each operator to institute reasonable measures to prevent a conversational AI service from performing certain actions for minor account holders, including:
a) producing visual material of sexual conduct;
b) generating direct statements that the account holder should engage in sexual conduct; and
c) generating statements that sexually objectify the account holder.
4. Requires an operator to institute, for minor account holders, reasonable measures to prevent a conversational AI service from generating statements that would lead a reasonable person to believe that the person is interacting with a human, including:
a) explicit claims that the conversational AI service is sentient or human;
b) statements that simulate emotional dependence;
c) statements that simulate romantic or sexual innuendos; and
d) role-playing of adult-minor romantic relationships.
5. Stipulates that, if a reasonable person would be misled to believe that the person is interacting with a human, an operator must clearly and conspicuously disclose that the conversational AI service is AI.
6. Requires each operator to offer tools to manage the account holder's privacy and account settings for minor account holders and the minor's parent or guardian, if the minor is under 13 years old or as appropriate based on relevant risks.
7. Instructs each operator to adopt a protocol for a conversational AI service to respond to a user prompt regarding suicidal ideation or self-harm, including reasonable efforts to provide a response that refers the user to crisis service providers.
8. Prohibits an operator from knowingly and intentionally causing or programming a conversational AI service to make any representation or statement that explicitly indicates that that the AI service is designed to provide professional mental or behavioral health care.
9. Subjects an operator who violates the outlined conversational AI service requirements and prohibitions to an injunction and liability for the greater of actual damages or civil penalties of $1,000 per violation, up to $500,000 per operator.
10. Specifies that a violation of the outlined AI requirements and prohibitions is punishable by a civil penalty only to be sought by the Attorney General.
11. Specifies that the outlined conversational AI requirements and prohibitions do not create a private right of action for enforcement or for support of a private right of action under any other law.
12. Excludes a developer of an AI model from liability for a violation of the outlined AI requirements and prohibitions by a conversational AI service that is made available to the public by a third-party operator.
13. Defines terms.
14. Becomes effective on October 1, 2027.
House Action
AII 2/12/26 DPA 7-0-0-0
3rd Read 2/24/26 43-13-4
Prepared by Senate Research
March 13, 2026
LMM/KS/ci