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SB2354 • 2026

Artificial Intelligence Fraud and Accountability Act; enact.

AN ACT TO CREATE THE ARTIFICIAL INTELLIGENCE FRAUD AND ACCOUNTABILITY ACT; TO DEFINE ARTIFICIAL INTELLIGENCE FRAUD; TO CREATE A CIVIL CAUSE OF ACTION FOR PERSONS OR ENTITIES INJURED OR DAMAGED BY ARTIFICIAL INTELLIGENCE FRAUD; TO PROVIDE REMEDIES; TO ALLOW THE COURT TO AWARD PUNITIVE DAMAGES UPON A FINDING OF KNOWING AND WILLFUL VIOLATION; TO ALLOW INJURED PERSONS OR ENTITIES TO FILE A CAUSE OF ACTION FOR A TEMPORARY OR PERMANENT INJUNCTION AGAINST VIOLATORS OF THIS ACT; TO PROVIDE THAT A PERSON OR ENTITY WHO KNOWINGLY DEVELOPS OR USES ARTIFICIAL INTELLIGENCE FOR FRAUDULENT PURPOSES MAY BE HELD JOINTLY AND SEVERALLY LIABLE; AND FOR RELATED PURPOSES.

Technology
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Blackmon
Last action
2026-02-03
Official status
Dead
Effective date
July 1, 20

Plain English Breakdown

The official source material does not provide specific details about how courts will interpret or apply the definitions of AI fraud and punitive damages under this act.

Artificial Intelligence Fraud and Accountability Act

This bill aims to define artificial intelligence fraud and provide legal remedies for those harmed by it.

What This Bill Does

  • Defines 'artificial intelligence fraud' as using AI systems to deceive, impersonate others, or obtain assets illegally.
  • Allows individuals or entities injured by AI fraud to sue in court for damages, attorney fees, and costs.
  • Enables courts to award punitive damages if there is clear and convincing evidence of knowing and willful violations.
  • Permits injured parties to seek temporary or permanent injunctions against violators of the act.

Who It Names or Affects

  • People who use artificial intelligence for fraudulent purposes.
  • Individuals or entities harmed by AI fraud can sue for damages.
  • Courts and legal professionals involved in handling cases related to AI fraud.

Terms To Know

Artificial Intelligence Fraud
Using artificial intelligence systems like deepfakes, voice cloning, or chatbots to deceive, impersonate others, or obtain assets illegally.
Punitive Damages
Money awarded by a court to punish someone who has acted in a particularly harmful way and to deter them from doing it again.

Limits and Unknowns

  • The bill did not pass during the session, so its provisions are not currently law.
  • It is unclear how courts will interpret and apply the definitions of AI fraud and punitive damages under this act.

Bill History

  1. 2026-02-03 Mississippi Legislative Bill Status System

    02/03 (S) Died In Committee

  2. 2026-01-19 Mississippi Legislative Bill Status System

    01/19 (S) Referred To Judiciary, Division A

Official Summary Text

Artificial Intelligence Fraud and Accountability Act; enact.

Current Bill Text

Read the full stored bill text
S. B. No. 2354 *SS08/R355* ~ OFFICIAL ~ G1/2
26/SS08/R355
PAGE 1 (aa\kr)

To: Judiciary, Division A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Blackmon

SENATE BILL NO. 2354

AN ACT TO CREATE THE ARTIFICIAL INTELLIGENCE FRAUD AND 1
ACCOUNTABILITY ACT; TO DEFINE ARTIFICIAL INTELLIGENCE FRAUD; TO 2
CREATE A CIVIL CAUSE OF ACTION FOR PERSONS OR ENTITIES INJURED OR 3
DAMAGED BY ARTIFICIAL INTELLIGENCE FRAUD; TO PROVIDE REMEDIES; TO 4
ALLOW THE COURT TO AWARD PUNITIVE DAMAGES UPON A FINDING OF 5
KNOWING AND WILLFUL VIOLATION; TO ALLOW INJURED PERSONS OR 6
ENTITIES TO FILE A CAUSE OF ACTION FOR A TEMPORARY OR PERMANENT 7
INJUNCTION AGAINST VIOLATORS OF THIS ACT; TO PROVIDE THAT A PERSON 8
OR ENTITY WHO KNOWINGLY DEVELOPS OR USES ARTIFICIAL INTELLIGENCE 9
FOR FRAUDULENT PURPOSES MAY BE HELD JOINTLY AND SEVERALLY LIABLE; 10
AND FOR RELATED PURPOSES. 11
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 12
SECTION 1. (1) This act shall be known and may be cited as 13
the "Artificial Intelligence Fraud and Accountability Act." 14
(2) As used in this section: 15
(a) "Artificial intelligence fraud" means the use of 16
artificial intelligence systems to deceive, impersonate or obtain 17
money, property, data or other assets from another person; and 18
(b) "Artificial intelligence systems" includes, but is 19
not limited to, deepfakes, voice cloning, generative text or image 20
tools, chatbots or automated decision-making systems. 21
S. B. No. 2354 *SS08/R355* ~ OFFICIAL ~
26/SS08/R355
PAGE 2 (aa\kr)

(3) (a) Any person or entity injured or damaged by 22
artificial intelligence fraud as defined herein may bring a cause 23
of action in the court having jurisdiction in the county in which 24
the violator resides, has his or her place of business, or where 25
the act or practice prohibited in this section allegedly occurred, 26
to seek compensatory damages or statutory damages in the amount of 27
Five Hundred Dollars ($500.00) per violation, whichever is 28
greater. Such injured person or entity shall also be entitled to 29
recover reasonable attorney's fees and other litigation costs 30
reasonably incurred. 31
(b) In any action brought under this section, if the 32
court finds clear and convincing evidence that a person or entity 33
knowingly and willfully engaged in a transaction or trade practice 34
with a consumer in which the consumer was or is harmed by 35
artificial intelligence fraud, the injured party may recover, at 36
the court's discretion, punitive damages under Section 11-1-65. 37
(c) Upon a violation of this section, any person or 38
entity affected by such violation may bring a cause of action 39
against violators to restrain by temporary or permanent injunction 40
the use of such fraudulent method, act or practice involving 41
artificial intelligence fraud. The action shall be brought in the 42
chancery or county court of the county in which such person 43
resides or has his or her principal place of business, or, with 44
the consent of the parties, may be brought in the chancery court 45
of the county in which the State Capitol is located. Courts are 46
S. B. No. 2354 *SS08/R355* ~ OFFICIAL ~
26/SS08/R355
PAGE 3 (aa\kr)
ST: Artificial Intelligence Fraud and
Accountability Act; enact.
authorized to issue temporary or permanent injunctions to restrain 47
and prevent violations of this chapter, and such injunctions shall 48
be issued without bond. 49
(4) Any person or entity which knowingly develops, deploys 50
or facilitates artificial intelligence systems for the purpose of 51
fraudulent behavior may be held jointly and severally liable for 52
resulting damages. 53
SECTION 2. This act shall take effect and be in force from 54
and after July 1, 2026. 55