Alabama HB325 mandates disclosure of AI chatbot use in commercial transactions and allows consumer lawsuits for non-compliance.

Alabama HB325 requires businesses to inform consumers at the start and during ongoing interactions if they are communicating with an AI chatbot, not a human. Non-compliance is considered an unfair or deceptive trade practice. Consumers can sue for injunctive relief and damages, with statutory damages up to $1,000 per violation. The Attorney General can also sue for injunctions, civil penalties up to $5,000,000, and other remedies. The act takes effect on October 1, 2026.

Alabama HB325 mandates disclosure of AI chatbot use in commercial transactions and allows consumer lawsuits for non-compliance.

Alabama HB325 requires businesses to inform consumers at the start and during ongoing interactions if they are communicating with an AI chatbot, not a human. Non-compliance is considered an unfair or deceptive trade practice. Consumers can sue for injunctive relief and damages, with statutory damages up to $1,000 per violation. The Attorney General can also sue for injunctions, civil penalties up to $5,000,000, and other remedies. The act takes effect on October 1, 2026.