New York State Proposes Law to Ban AI from Giving Medical, Legal Advice

As AI chatbots assume the roles of "all-around doctors" and "top lawyers," legal oversight is quickly catching up. The New York State Legislature is reviewing a bill, S7263, designed to prohibit AI chatbots from offering substantial legal or medical advice to the public.
Pushed by the New York State Senate Committee on Internet and Technology, the bill targets AI systems that may involve "unlicensed practice." It explicitly forbids AI chatbots from impersonating licensed professionals—such as doctors or lawyers—to deliver medical advice or legal solutions. If operators violate this ban, users gain the right to bring a civil lawsuit, allowing them to directly sue the chatbot owner and seek compensation.
To combat misinformation, the bill also introduces a set of "identity transparency" standards:
Mandatory Notice: Owners must inform users in a "clear and prominent" manner that they are interacting with an AI, and the font must be easy to read.
Shared Liability: Even if a notice is provided, owners cannot be exempt from legal liability for harm caused by AI advice.
This legislation has a sobering background. In January of this year, following several lawsuits linked to minors' suicides, the generative AI platform Character.AI reached a settlement with Google. New York State Senator Kristin Gonzalez stressed that the public deserves "genuine care from real people" and that AI innovation must not come at the expense of New Yorkers' safety, particularly children's safety.
If the bill is ultimately signed into law, it will take effect 90 days later. This signals that the AI industry will move away from the "wild growth" era of advisory services, and all platforms must build a solid safety firewall between professional fields and users.
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As AI chatbots assume the roles of "all-around doctors" and "top lawyers," legal oversight is quickly catching up. The New York State Legislature is reviewing a bill, S7263, designed to prohibit AI chatbots from offering substantial legal or medical advice to the public.
Pushed by the New York State Senate Committee on Internet and Technology, the bill targets AI systems that may involve "unlicensed practice." It explicitly forbids AI chatbots from impersonating licensed professionals—such as doctors or lawyers—to deliver medical advice or legal solutions. If operators violate this ban, users gain the right to bring a civil lawsuit, allowing them to directly sue the chatbot owner and seek compensation.
To combat misinformation, the bill also introduces a set of "identity transparency" standards:
Mandatory Notice: Owners must inform users in a "clear and prominent" manner that they are interacting with an AI, and the font must be easy to read.
Shared Liability: Even if a notice is provided, owners cannot be exempt from legal liability for harm caused by AI advice.
This legislation has a sobering background. In January of this year, following several lawsuits linked to minors' suicides, the generative AI platform Character.AI reached a settlement with Google. New York State Senator Kristin Gonzalez stressed that the public deserves "genuine care from real people" and that AI innovation must not come at the expense of New Yorkers' safety, particularly children's safety.
If the bill is ultimately signed into law, it will take effect 90 days later. This signals that the AI industry will move away from the "wild growth" era of advisory services, and all platforms must build a solid safety firewall between professional fields and users.
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