Inside Global Tech · Oct 6
California will require large companies' support chatbots to admit they are bots and offer a human
California's AB 1609, among more than 20 AI bills Governor Newsom signed this session, bars large businesses from presenting a customer service chatbot as human and requires a clear AI disclosure where people could be misled. Covered businesses, those with more than $500 million in annual revenue, must offer a way to request a human and make a good faith effort to connect within 15 minutes or schedule a callback within one business day. The law takes effect January 1, 2027, with civil penalties of up to $5,000 per violation and $10,000 for repeat violations.
▸ The MSP Angle
Do small businesses have to disclose that their customer service chatbot is AI?
California's new handoff rule only covers companies above $500 million in revenue, but disclosure rules are spreading and clearly labeling a bot is cheap insurance for any client. When you build or manage a support agent, make it say it is AI, give customers an obvious way to reach a person and log every handoff. Clients that serve larger customers may also see these terms flow down into vendor contracts.