The Hawaii House of Representatives introduced Bill HB639 on February 5, 2025, aimed at regulating the use of artificial intelligence (AI) chatbots in commercial transactions. This legislation seeks to ensure transparency for consumers by mandating that corporations, organizations, or individuals clearly inform users when they are interacting with AI technology that mimics human behavior.

Key provisions of the bill include requirements for developers to disclose the use of AI in their chatbots and to provide conspicuous notifications to consumers. The bill also establishes a framework for private rights of action, allowing individuals to seek remedies in cases of unfair or deceptive practices related to AI interactions. Notably, the bill outlines statutory penalties for violations, with civil penalties reaching up to $5 million for corporations or individuals found in breach of its provisions.

The bill has sparked discussions regarding its implications for consumer protection and the evolving landscape of AI technology. Proponents argue that it is essential for safeguarding consumer rights in an increasingly digital marketplace, while critics raise concerns about the potential burden on businesses and the feasibility of compliance.

In terms of economic implications, the bill could influence how companies develop and market AI technologies, potentially leading to increased operational costs. Socially, it aims to enhance consumer trust in AI interactions, addressing growing concerns about transparency and ethical practices in technology.

The bill is set to take effect on July 1, 3000, and does not retroactively affect rights or penalties incurred prior to its enactment. As discussions continue, stakeholders are closely monitoring the potential impact of HB639 on both consumers and the technology industry in Hawaii.