This bill enacts various provisions relating to “artificial intelligence systems,” which section 4 of this bill defines to mean any machine-based system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including, without limitation, content, decisions, predictions or recommendations, that can influence physical or virtual environments. Sections 6-12 of this bill provide for the registration and regulation of “artificial intelligence companies,” which section 3 of this bill defines to mean, in general, a person who develops an artificial intelligence system that is primarily used to generate certain material or is trained using certain data and either sells the system to another person or enters into a contractual arrangement with another person that, by its terms, allows customers of the person to use the artificial intelligence system in exchange for a fee paid by the person to the artificial intelligence company. Section 6 requires an artificial intelligence company to be registered with the Bureau of Consumer Protection in the Office of the Attorney General. Sections 6-8 set forth various requirements for the issuance and renewal of such a registration. Section 11 authorizes the Bureau to impose certain penalties against a person who fails to register as required in section 6. Section 12 authorizes the Bureau to adopt regulations to carry out the provisions of sections 6-11. Section 13 of this bill requires a person who sells computer software that is capable of generating legal documents through the use of an artificial intelligence system, with certain exceptions, to ensure that each such document generated is reviewed by a licensed attorney before the document is provided to a customer in this State. Section 14 of this bill requires the operator of a social media platform that provides users both a method to conduct a search on the platform that will result in information concerning the search being used to train an artificial intelligence system and a method that will not have that result to: (1) require a user to opt in to use the method that will result in the information concerning the search being used to train an artificial intelligence system; and (2) allow a user that does not opt in to continue to use the method that will not have that result so long as the operator offers the method. Section 15 of this bill prohibits a person who is paid money for a service on the condition that the service be provided by a natural person from providing the service through an image of a natural person generated by an artificial intelligence system. Section 16 of this bill requires the Department of Employment, Training and Rehabilitation to develop a survey to be sent to certain employers in order to determine the number and type of jobs that have been lost in this State because of the use of artificial intelligence systems and submit an annual report to the Governor and the Legislature regarding the information collected from the survey. Sections 16 and 16.5 of this bill provide for the confidentiality of certain information collected from the survey. Section 17 of this bill requires a county recorder to develop, implement and maintain policies, procedures and protocols to verify the identity of any person filing a document and to protect against fraud committed in the filing of a document through the use of an artificial intelligence system. Section 18 of this bill requires each law enforcement agency to develop, maintain and periodically update a policy concerning the use of artificial intelligence systems by the law enforcement agency. Section 18 requires the policy and any update to the policy to be submitted to the Bureau of Consumer Protection. Section 26 of this bill requires the Superintendent of Public Instruction to establish the Working Group on the Use of Artificial Intelligence Systems in Education to conduct an assessment and develop certain policies and guidance relating to the use of artificial intelligence systems during the 2025-2026 interim. The Nevada Unfair Trade Practice Act sets forth various activities that constitute an unlawful contract, combination or conspiracy in restraint of trade and authorizes the Attorney General to investigate and take certain actions against persons who engage in such activities, which may include, without limitation, criminal prosecution and the imposition of civil penalties. (Chapter 598A of NRS) Section 20 of this bill includes among the activities that constitute an unlawful contract, combination or conspiracy in restraint of trade the establishment by a landlord of a price for rent for a dwelling unit that is based upon a recommendation provided by certain artificial intelligence systems that generate recommended prices for rent using certain nonpublic information provided by multiple landlords. Section 21 of this bill authorizes the Commissioner of Financial Institutions to adopt regulations establishing requirements and restrictions on the use of artificial intelligence systems by persons licensed by the Commissioner. Section 24 of this bill prohibits an insurer from using any data collected by the insurer relating to the health of an insured to train an artificial intelligence system developed by the insurer without providing certain notice and obtaining the consent of the customer to whom such data relates. Existing law sets forth various practices that constitute an unfair or deceptive trade practice in the business of insurance. (NRS 686A.010-686A.310) Section 25 of this bill requires an insurer to adopt practices designed to ensure that the use of an artificial intelligence system by the insurer does not result in the commission of an unfair or deceptive trade practice. Section 25 also requires an insurer to develop, implement and maintain a plan for the responsible use of artificial intelligence systems by the insurer and sets forth certain requirements for such a plan. Section 22 of this bill applies the definitions set forth under the provisions of existing law governing financial institutions to the provisions of section 21.

Statutes affected:
As Introduced: 598A.060, 657.150
Reprint 1: 239.010, 598A.060, 657.150
BDR: 598A.060, 657.150