Regards AI-generated products, AI-systems acting as humans
Requires watermarks on AI-generated content and clear disclosures when AI acts as a human, with enforcement and penalties for noncompliance.
Requires watermarks on AI-generated content and clear disclosures when AI acts as a human, with enforcement and penalties for noncompliance.
Date introduced: 2026-04-13
Purpose
- The bill would establish requirements related to artificial intelligence (AI)–generated content and transparency in how AI systems are used. It directs the addition of watermarks on AI-generated products and mandates disclosure when AI systems are acting as humans.
Key provisions
Definitions (Sec. 1349.12)
- AI system: An engineered or machine-based system that infers from input to generate an AI product.
- AI-generated product (AI-product): Content substantially created or modified by an AI system such that its use materially alters the content. Excludes content where the original digital data is simply compressed/encoded for storage, transmission, or encryption if such processing does not alter content meaning.
- Content: Any image, video, audio, multimedia, or text data uploaded to or stored with a website, app, or service.
Watermarking and disclosure requirements (Sec. 1349.13)
- All AI-generated products must include a distinctive watermark indicating the content was generated by an AI system.
- No public or commercial distribution of AI-generated content may occur without such a watermark.
- Anyone using an AI system must clearly and conspicuously inform users when the AI is acting as or emulating a human.
- The watermarking and disclosure requirements do not apply to AI-generated content created at a user’s prompting for personal, noncommercial use.
Complaint intake and investigations (Sec. 1349.14)
- Individuals or entities who believe there is a violation can file a complaint with the Ohio Attorney General via a form on the AG’s website.
- The Attorney General may investigate complaints and determine if there is noncompliance.
Civil action and penalties (Sec. 1349.15)
- Aggrieved individuals may sue for damages resulting from violations.
- The Attorney General may also sue for injunctive relief and civil penalties ranging from $2,500 to $10,000 per violation.
- If a respondent cures all violations within seven days of notice and provides a signed statement agreeing to refrain from further violations, the AG must generally refrain from pursuing further civil action (with exceptions for continued or subsequent violations).
- The AG may still pursue action if timely cure is not achieved or if violations recur after cure.
Penalty assessment and fund (Sec. 1349.16)
- Courts will consider factors like the seriousness of the violation, intent, prior violations, and harm in determining penalties.
- All civil penalties collected by the AG under Sec. 1349.15 are deposited into the Consumer Protection Enforcement Fund (as established by separate statute).
Who is affected
- AI developers, providers, platforms, and users of AI-generated content in Ohio.
- Businesses and individuals distributing AI-generated products publicly or commercially.
- Consumers who may encounter AI-generated content online, advertising, or services.
- The Ohio Attorney General’s Office, which would oversee complaints, investigations, and enforcement.
Procedural and timeline aspects
- Complaint intake processes would be available via the AG’s website.
- The bill creates a process for investigation, written notice of violations, and a potential seven-day cure window before the AG may file suit for noncompliance (subject to exceptions for ongoing violations).
- Civil penalties have specified minimum/maximum amounts and are collected into a designated state fund for consumer protection.
- Watermarking and disclosure requirements apply to AI-generated content broadly, with an explicit personal, noncommercial exception.
Notes
- The bill provides enforcement tools (investigations, civil actions, penalties) and a framework for whistleblower-like reporting through the AG’s office.
- It creates a specific definition framework for AI systems and AI-generated content to determine when watermarking and disclosures are required.
Compiled from official sources — confirm details with the bill’s official record.
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