If enacted, SB2691 would significantly enhance consumer transparency and protection by holding developers of generative AI systems accountable for ensuring that their systems include mandatory disclosures in AI-generated content. The Federal Trade Commission (FTC) would be empowered to enforce compliance, treating violations as unfair or deceptive acts. This shift could reshape the landscape for content creators, media platforms, and businesses employing AI technologies, compelling them to develop clearer practices around the use and application of AI-generated material.
SB2691, known as the AI Labeling Act of 2023, aims to mandate disclosures concerning AI-generated content across various media formats, including images, videos, audio, and text. The bill is designed to ensure that consumers are aware of the nature of the content they are engaging with, particularly as generative artificial intelligence technology becomes more pervasive. The bill establishes clear guidelines for how disclosures should be made, requiring them to be clear, conspicuous, and durable, so users cannot easily remove or overlook them.
The legislation faces potential contention regarding the implications of strict monitoring and compliance requirements on innovation within the AI sector. Supporters argue that the bill is necessary for consumer safety and transparency, while critics raise concerns about the potential burden on developers, positing that excessive regulation could stifle creativity and advance in AI technology. Additionally, there may be disagreements on how strict the enforcement mechanisms should be and how to balance regulation with the need for innovation.
The bill further establishes a working group coordinated by the National Institute of Standards and Technology to assist and develop the technical standards for detecting AI-generated content. This collaborative approach entails participation from various stakeholders, including developers, private sector groups, and social media platforms, highlighting a comprehensive effort to navigate the challenges posed by AI advancements in consumer media.