HB 1857 — 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
 1   Requiring business entities to disclose the use of artificial
 2      intelligence in certain consumer interactions; establishing
 3      the right of consumers to human review in high-impact
 4      decisions; and providing for enforcement by Attorney General.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7   Section 1.   Short title.
 8      This act shall be known and may be cited as the Artificial
 9   Intelligence Transparency in Services Act.
10   Section 2.   Definitions.
11      The following words and phrases when used in this act shall
12   have the meanings given to them in this section unless the
13   context clearly indicates otherwise:
14      "Artificial intelligence."    As follows:
15          (1)   A machine-based system that can, for a given set of
16      human-defined objectives, make predictions, recommendations
17      or decisions influencing real or virtual environments,
18      including the ability to:
 1                  (i)    perceive real and virtual environments;
 2                  (ii)    abstract perceptions made under this paragraph
 3            into models through analysis in an automated manner; and
 4                  (iii)    use model inference to formulate options for
 5            information or action based on outcomes under
 6            subparagraphs (i) and (ii).
 7            (2)   The term includes generative artificial
 8      intelligence.
 9      "Business entity."       A for-profit corporation, limited
10   liability company, partnership, limited liability partnership or
11   Subchapter S corporation formed or organized under the laws of
12   this Commonwealth or another jurisdiction.
13      "Consumer interaction."       A communication, transaction or
14   service directed toward an individual resident of this
15   Commonwealth.
16      "Generative artificial intelligence."       A class of models that
17   emulate the structure and characteristics of input data in order
18   to generate derived synthetic content, including information
19   such as images, videos, audio clips or text, that has been
20   significantly modified or generated by algorithms, including by
21   artificial intelligence.
22      "High-impact decision."       A decision or determination that
23   materially affects an individual's legal rights, employment,
24   housing, credit, education, health care or access to government
25   benefits.
26   Section 3.     Disclosure requirement.
27      (a)   Duty of business entity.--A business entity that uses
28   artificial intelligence in any part of a consumer interaction
29   shall disclose the use of artificial intelligence in a clear and
30   conspicuous manner to the consumer at the beginning of the

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 1   consumer interaction.
 2      (b)   Format.--The business entity shall deliver the
 3   disclosure in plain language, orally or in writing, which
 4   language must be reasonably accessible to an individual with a
 5   disability or limited English proficiency.
 6      (c)   Human representatives.--Upon request, the business
 7   entity shall provide the consumer with timely access to a human
 8   representative, if a human representative is reasonably
 9   available.
10   Section 4.   High-impact decisions.
11      (a)   Right to human review.--A consumer shall have the right
12   to request that a human representing the business entity review
13   any consumer interaction involving a high-impact decision.
14      (b)   Notice.--When the conditions under section 3 are met
15   requiring the disclosure of the use of artificial intelligence
16   in a consumer interaction and involve a high-impact decision,
17   the business entity shall disclose in a clear and conspicuous
18   manner that the consumer has a right to request a human review
19   by the business entity involving the high-impact decision.
20      (c)   Time frame.--A business entity shall commence the human
21   review not later than 14 days after the request for a human
22   review is made. The human review shall be completed and the
23   decision delivered to the requester not later than 28 days after
24   the request for a human review is made.
25   Section 5.   Enforcement.
26      (a)   Civil penalties.--The Attorney General may bring a civil
27   action under the act of December 17, 1968 (P.L.1224, No.387),
28   known as the Unfair Trade Practices and Consumer Protection Law,
29   for civil penalties not exceeding $2,500 per violation to
30   enforce this act.

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1      (b)   Private right of action.--Nothing in this section shall
2   be construed to limit any other remedy available at law.
3   Section 6.   Effective date.
4      This act shall take effect in six months.




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