New York bill on AI and unauthorized practice of a profession
A proposed New York Senate bill (SB 7263) would create potential civil liability for companies and organizations that operate AI chatbots if their systems provide advice that would constitute the unauthorized practice of a licensed profession when given by a human. The measure would prohibit chatbot “proprietors”—defined broadly as entities that own, operate or deploy a chatbot—from allowing the system to deliver substantive responses that amount to professional services such as legal, medical or other licensed advice. If a user suffers harm after relying on such outputs, the bill would allow the user to file a civil lawsuit seeking damages and, in cases of willful violations, attorneys’ fees and costs. The proposal would also require chatbot operators to clearly disclose that users are interacting with an AI system, although that disclosure alone would not shield them from liability if the chatbot provides prohibited advice. The bill reflects growing efforts by lawmakers to apply traditional professional-licensing rules to emerging AI technologies and to address concerns about users relying on automated systems for professional guidance.