New York state Assembly Bill A3411B (“the Bill”) passed its third reading in the senate on March 9, 2026, sending it through the legislature and preparing it for delivery to Governor Kathy Hochul. If enacted, the Bill will require owners, licensees, and operators of generative AI systems to display a clear and conspicuous notice on system user interfaces that generative AI outputs may be inaccurate. The Bill now awaits delivery to, and signature by, Governor Hochul. If signed, it will enter into effect 90 days after becoming law.
The Bill applies to “owners, licensees, and operators” of generative AI systems, defined as “self-supervised” AI models that “emulate the structure and characteristics of input data to generate derived synthetic content.” Businesses that integrate generative AI models into user-facing products may be within scope, and the Bill makes no distinction between enterprise- and consumer-facing AI systems. The Bill contains no private right of action, though failure to provide notice may result in a civil penalty of $1,000 per violation.
The Bill reflects a wider legislative trend in New York that prioritizes transparency when regulating emerging technologies. In the past year, the state has passed several bills into law imposing disclosure requirements on AI and related technologies, including:
- A3008 – (1) requiring businesses that use personalized algorithmic pricing to provide a clear and conspicuous disclosure to consumers; and (2) mandating AI companion operators to implement protocols to detect and address suicidal or self-harm ideation of users, including informing users of suicide prevention resources.
- S4505/A5346 – requiring social media platform providers to display mental health warning labels.
- S8420-A/A8887-B – requiring producers and advertisers to publicly disclose when a commercial advertisement includes AI-generated synthetic human performers.
Going forward, businesses should implement required user-facing notices and ensure they comply with applicable law. Because legislation may apply to owners, operators, and licensees of generative AI systems, businesses should ensure relevant technology and commercial agreements address the responsibility for developing, configuring, and implementing notification interfaces and allocation of liability for violations of these legal standards.
Please contact Alston & Bird’s Privacy, Cybersecurity, and Data Strategy Team and sign up for alerts at AlstonPrivacy.com for more information on AI legislation and compliance.
