This bill mandates that any person or entity utilizing generative artificial intelligence (AI) to communicate with consumers for trade or commerce must provide a clear and conspicuous notice at the beginning of the interaction. This notice must inform the consumer that they are engaging with generative AI rather than a human, particularly in situations where the AI's deployment could lead a reasonable person to believe they are interacting with a human. The bill defines generative AI as a technology system that simulates human communication through text, audio, or visual means and generates non-scripted outputs with limited or no human oversight.

Violations of this requirement would be classified as an unlawful practice under New Jersey's consumer fraud act, which could result in monetary penalties of up to $10,000 for a first offense and up to $20,000 for subsequent offenses. Additionally, the Attorney General may issue cease and desist orders, and violators may face punitive damages, treble damages, and costs awarded to the injured parties. The bill is set to take effect immediately upon passage.