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Why this matters.
Businesses of every size now use AI chatbots and voice agents for sales, bookings and customer support, and US law increasingly requires you to be upfront about it. California’s bot disclosure law (Business and Professions Code §17940-17943) makes it unlawful to use a bot to communicate with people in California with intent to mislead them about its artificial identity in order to sell goods or services, unless you clearly disclose it is a bot. Utah’s Artificial Intelligence Policy Act requires businesses to disclose that a consumer is talking to generative AI when asked, and proactively in regulated professions and higher-risk interactions. California has also added rules for companion chatbots (SB 243), and Colorado’s AI Act (SB 24-205) will require disclosure when consumers interact with AI systems.
Federal law applies too. The FTC treats misleading claims about AI, and chatbots that pass themselves off as humans or make false promises, as unfair or deceptive practices under Section 5 of the FTC Act (15 U.S.C. §45), and has brought cases under its Operation AI Comply. The FCC confirmed in 2024 that AI-generated voices are “artificial” voices under the TCPA (47 U.S.C. §227), so AI voice calls need prior express consent. Recording or sharing chat transcripts with a third-party AI vendor has also triggered class actions under wiretap laws such as the California Invasion of Privacy Act (Penal Code §631). You remain responsible for what your chatbot tells customers.
