New York Bill Would Create Liability For Chatbot Proprietors Offering Professional Advice

The New York State Senate has advanced a bill that would bar "proprietors" of artificial intelligence (AI)-powered chatbots from providing "substantive" responses or advice that, if provided by a human, would constitute the unauthorized practice of a licensed profession under the Education Law or the unauthorized practice of law under the Judiciary Law. For purposes of the bill, a "proprietor" includes any entity that owns, operates or deploys the chatbot but excludes third‑party developers that merely license the underlying technology.

First introduced in April 2025, Senate Bill (SB) 7263 would create a private right of action for actual damages resulting from violations and, in cases of willful violations, reasonable attorneys' fees and costs.