New York Bill Would Hold AI Companies Liable for Providing Legal Advice, Drawing Constitutional Concerns
Key Takeaways
- ▸New York's Senate Bill S7263 would hold AI companies legally liable when chatbots provide advice in fields requiring professional licensure, including legal counsel, medical diagnoses, and mental health services
- ▸The bill unanimously passed the state Senate Internet and Technology Committee despite concerns from legal experts that it unconstitutionally restricts access to information
- ▸Critics characterize the legislation as protectionist, arguing it prioritizes professional monopolies over consumer access to lower-cost AI assistance
Summary
The New York State Senate Internet and Technology Committee has unanimously passed Senate Bill S7263, which would hold AI companies like OpenAI, Anthropic, and xAI liable for harm caused by chatbots performing tasks that constitute unauthorized practice of licensed professions. Introduced by Sen. Kristen Gonzalez, the bill specifically targets chatbots that provide legal advice, medical diagnoses, or other professional services typically requiring state licensure. The legislation would require AI companies to clearly notify users they are interacting with a chatbot, but would not allow them to disclaim responsibility for the outputs.
Critics argue the bill is protectionist and would unconstitutionally limit access to information. Kevin Frazier of the Cato Institute calls the measure "contrary to both democratic values and a free market economy," noting that poor outcomes from information sources are not unique to AI. Taylor Barkley of the Abundance Institute describes the ban as "shortsighted at best and protectionist at worst," pointing out that AI systems can increase quality and lower costs in the professions the bill seeks to protect.
The bill covers a wide range of licensed professions including psychology, medicine, veterinary medicine, dentistry, physical therapy, pharmacy, nursing, engineering, architecture, and social work. Co-sponsor Sen. Michelle Hinchey has expressed concerns that AI "threatens to deepen economic inequality and destabilize our economy by eliminating entire job sectors overnight." Hinchey has also introduced a separate Workforce Stabilization Act that would require employers to conduct labor impact assessments and obtain permission before incorporating AI into their businesses, with support from the AFL-CIO labor federation.
- The bill is part of a broader legislative package aimed at protecting workers from AI displacement, with co-sponsors explicitly citing concerns about AI eliminating job sectors
