An Act requiring business entities to disclose the use of artificial intelligence in certain consumer interactions; establishing the right of consumers to human review in high-impact decisions; and providing for enforcement by Attorney General.

PRINTER'S NO. 2298
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1857
Session of
2025
INTRODUCED BY WAXMAN, HILL-EVANS, FREEMAN, DONAHUE, PROBST,
SANCHEZ AND PIELLI, SEPTEMBER 10, 2025
REFERRED TO COMMITTEE ON COMMUNICATIONS AND TECHNOLOGY,
SEPTEMBER 10, 2025
AN ACT
Requiring business entities to disclose the use of artificial
intelligence in certain consumer interactions; establishing
the right of consumers to human review in high-impact
decisions; and providing for enforcement by Attorney General.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Artificial
Intelligence Transparency in Services Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Artificial intelligence." As follows:
(1) A machine-based system that can, for a given set of
human-defined objectives, make predictions, recommendations
or decisions influencing real or virtual environments,
including the ability to:
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(i) perceive real and virtual environments;
(ii) abstract perceptions made under this paragraph
into models through analysis in an automated manner; and
(iii) use model inference to formulate options for
information or action based on outcomes under
subparagraphs (i) and (ii).
(2) The term includes generative artificial
intelligence.
"Business entity." A for-profit corporation, limited
liability company, partnership, limited liability partnership or
Subchapter S corporation formed or organized under the laws of
this Commonwealth or another jurisdiction.
"Consumer interaction." A communication, transaction or
service directed toward an individual resident of this
Commonwealth.
"Generative artificial intelligence." A class of models that
emulate the structure and characteristics of input data in order
to generate derived synthetic content, including information
such as images, videos, audio clips or text, that has been
significantly modified or generated by algorithms, including by
artificial intelligence.
"High-impact decision." A decision or determination that
materially affects an individual's legal rights, employment,
housing, credit, education, health care or access to government
benefits.
Section 3. Disclosure requirement.
(a) Duty of business entity.--A business entity that uses
artificial intelligence in any part of a consumer interaction
shall disclose the use of artificial intelligence in a clear and
conspicuous manner to the consumer at the beginning of the
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consumer interaction.
(b) Format.--The business entity shall deliver the
disclosure in plain language, orally or in writing, which
language must be reasonably accessible to an individual with a
disability or limited English proficiency.
(c) Human representatives.--Upon request, the business
entity shall provide the consumer with timely access to a human
representative, if a human representative is reasonably
available.
Section 4. High-impact decisions.
(a) Right to human review.--A consumer shall have the right
to request that a human representing the business entity review
any consumer interaction involving a high-impact decision.
(b) Notice.--When the conditions under section 3 are met
requiring the disclosure of the use of artificial intelligence
in a consumer interaction and involve a high-impact decision,
the business entity shall disclose in a clear and conspicuous
manner that the consumer has a right to request a human review
by the business entity involving the high-impact decision.
(c) Time frame.--A business entity shall commence the human
review not later than 14 days after the request for a human
review is made. The human review shall be completed and the
decision delivered to the requester not later than 28 days after
the request for a human review is made.
Section 5. Enforcement.
(a) Civil penalties.--The Attorney General may bring a civil
action under the act of December 17, 1968 (P.L.1224, No.387),
known as the Unfair Trade Practices and Consumer Protection Law,
for civil penalties not exceeding $2,500 per violation to
enforce this act.
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(b) Private right of action.--Nothing in this section shall
be construed to limit any other remedy available at law.
Section 6. Effective date.
This act shall take effect in six months.
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