Bill Description: House Bill 127 would impose new regulations on businesses that use AI chatbots or similar technologies. 

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Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market? 

House Bill 127 would create Section 48-603H, Idaho Code, to prohibit a business from using a "chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation" without providing "clear and conspicuous" notification to the consumer. 

This would apply in any case where "the consumer may reasonably believe the consumer is engaging with a human because the communication is not clear and conspicuous" and the technology is being used for more than "stating the person's basic operations information, such as employee directories, locations, hours of operation, the basic mechanics of purchasing items, and similar information."

The use of AI chatbots and similar technology is still being explored and businesses and developers are experimenting with new ways to use it. One purpose of this technology is to create increasingly seamless transitions from AI to human assistance without disrupting the consumer. 

Imposing notification requirements is not only interfering in the market, it may prove counterintuitive if the intention is to benefit consumers and reduce confusion.

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