The bill S.F. No. 1886 in the Minnesota Senate focuses on consumer protection by requiring disclosures when individuals interact with artificial intelligence (AI).

Key Provisions:

1. Definition of Artificial Intelligence (AI):
   AI is defined as a machine-based system that processes inputs and generates outputs such as content, decisions, predictions, or recommendations that can influence physical or virtual environments.

2. Disclosure Requirement:

   • Businesses must disclose when an individual is interacting with AI in a textual or aural (spoken) conversation.
   • Failure to disclose is considered an unfair or deceptive trade practice.

3. Deceptive Conduct:

   • It is a deceptive trade practice if a business misleads an individual into believing they are communicating with a human when they are actually interacting with AI.
   • If an individual reasonably believes they are conversing with a human and is not properly notified, the business is in violation.

4. Opt-Out Option:

   • Businesses using AI in communications must provide individuals with the option to interact with a real human instead.

5. Enforcement & Penalties:

   • Individuals harmed by violations can file a civil lawsuit for damages, with statutory damages capped at $1,000, plus injunctive relief, costs, and attorney fees.
   • The Attorney General may also enforce the law, with penalties up to $5,000,000 for businesses violating the provisions.

This bill aims to protect consumers by ensuring transparency in AI interactions and providing options for human interaction.