To counter the spread of misinformation, HB 1170 places guardrails on the use of generative artificial intelligence (AI) systems. As amended in the Senate, the bill requires government entities, including local governments, that use AI systems in interactions with customers to disclose the use of the AI system. This disclosure must be made before or at the time of customer interaction.

Please immediately reach out to your representatives to urge the House not to concur with the Senate’s version of the bill as it results in an unfunded mandate.

AI content bill now includes local government requirements

February 27, 2026

In an effort to combat misinformation generated by generative artificial intelligence (AI), the Legislature seeks to provide guardrails for entities that create or produce generative AI systems that are publicly accessible within the state for personal use and have over a million monthly users, defined as “covered providers.” AWC had previously not engaged on HB 1170 because it did not have a local government nexus until recent amendments made in the Senate Environment, Energy, and Technology Committee.

The bill now requires government entities that use AI systems in interactions with customers to disclose the use of an AI system to the interacting customer. This disclosure is to be made before or at the time of customer interaction. The bill outlines notification requirements, which specify the disclosure must be:

• Clearly and prominently displayed;
• Written in plain language; and
• May not use a “dark pattern,” which is a user interface that misguides users into actions they are unaware of.

The bill allows the Attorney General to bring action on behalf of the state against “covered providers.” Violations by a covered provider are subject to a civil penalty of up to $100,000 per provider.

The bill takes effect on February 1, 2027. If passed, cities using AI systems for customer interactions will be required to have disclosure notices in place by the effective date.