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Bill

SB 2995

CONSUMER FRAUD-AI DISCLOSURE

104th Regular Session Introduced by Dave Koehler and 1 co-sponsor

Illinois bill requiring businesses to disclose AI use to consumers to prevent fraud and ensure informed decision-making in commercial interactions.

Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026
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WeVote Research Nonpartisan
Bill Summary · SB 2995

Legislative bill overview

SB 2995 requires businesses and individuals to disclose when they are using artificial intelligence to interact with consumers, create content, or make decisions that affect consumer rights. The bill establishes penalties for failing to provide clear AI disclosure and aims to prevent consumer deception through non-transparent AI use.

Why is this important

As AI becomes increasingly integrated into business operations—from customer service chatbots to hiring decisions to content generation—consumers often cannot tell if they're interacting with AI or humans. This information asymmetry can undermine informed decision-making and enable fraud. Clear disclosure requirements create transparency and allow consumers to understand how their data is being used and processed.

Potential points of contention

  • Definition and scope: How broadly "AI" is defined could significantly impact compliance; overly broad definitions might capture standard software automation, while narrow ones could create loopholes
  • Enforcement burden: Small businesses and startups may face compliance challenges and costs, potentially creating disproportionate regulatory burdens compared to large corporations
  • Competitive concerns: Requiring disclosure of AI use could reveal proprietary business practices or algorithms, and may disadvantage Illinois-based companies competing against out-of-state firms without equivalent requirements
  • Technical feasibility: Determining when and how to disclose AI involvement in complex systems with multiple decision-making layers presents practical implementation challenges

Compiled from official sources — confirm details with the bill’s official record.

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