The bill H.783 aims to enhance consumer protection by mandating that individuals or entities operating chatbots in commercial transactions must clearly inform consumers when they are interacting with a chatbot, rather than a human. Specifically, it stipulates that if a reasonable person could be misled into believing they are communicating with a human, the chatbot operator must provide a clear and conspicuous notification to the consumer. The bill defines a "chatbot" as any artificial intelligence or automated system that simulates human interaction through text, audio, image, or video.

Additionally, the bill establishes that violating this disclosure requirement constitutes an unfair and deceptive act in commerce, aligning it with existing consumer protection laws. The provisions of this act are set to take effect on July 1, 2026.