New York Legislature Passes GenAI Warning Bill
The New York legislature has taken a significant step in regulating generative artificial intelligence (GenAI) systems by passing Bill A 3411 on March 9, 2026. If enacted, this legislation will mandate that GenAI systems provide users with a conspicuous warning regarding the potential inaccuracies of their outputs.
Background
This bill is sponsored by Senator Kristen Gonzalez in the Senate (S 934) and Representative Clyde Vanel in the House (A 3411). Senator Gonzalez has emerged as a leading advocate for technology-related legislation in New York, having previously spearheaded the New York Legislative Oversight of Automated Decision-making in Government (LOADinG) Act.
The push for transparency in AI systems echoes similar legislation passed last year, namely the Algorithmic Pricing Disclosure Act, which requires entities using personalized algorithmic pricing to disclose that the price was set by an algorithm using personal data.
Applicability of the Bill
The bill specifically targets GenAI systems, defined as a class of artificial intelligence models that are self-supervised and create synthetic content such as images, videos, audio, and text. The original definition was broader, encompassing any AI system primarily focused on content generation.
Furthermore, the bill outlines that AI includes machine-based systems capable of making predictions, recommendations, or decisions based on human-defined objectives. This encompasses technologies like machine learning, large language models, natural language processing, and computer vision.
Warning Requirement
Under the new legislation, the owner, licensee, or operator of a GenAI system must display a notice on the user interface stating that the outputs may be inaccurate. Initially, the bill included a warning about “inappropriate” outputs, but this has since been removed.
The bill does not specify what constitutes a clear and conspicuous display, which differs from the Algorithmic Pricing Disclosure Act that provided detailed guidelines on visibility and understanding for consumers.
Enforcement and Penalties
Failure to comply with the warning requirement will result in a fine of $1,000 for each violation, with each user who does not receive a warning counting as a separate violation. The original draft proposed a much higher fine of $25,000.
Effective Date
If signed into law, the bill will take effect 90 days after enactment, marking a pivotal moment for the regulation of AI technology and its implications for users and developers alike.
