AL HB325

Requires businesses using AI chatbots in commercial transactions to notify consumers they are communicating with a computer, not a human, at the beginning of each interaction and at regular intervals during continuing interactions

Classifies failure to disclose AI chatbot use as an unfair or deceptive trade practice under Alabama law

Creates a private right of action allowing consumers to sue for injunctive relief, actual damages, and statutory damages up to $1,000 per violation

Caps class action damages at $10,000,000 and authorizes the Attorney General to seek civil penalties up to $5,000,000 per violation

Effective date: October 1, 2026