This bill requires developers of AI systems to clearly label and disclose AI-generated content when it is shared online, and it penalizes attempts to hide or falsify such disclosures. Companies must embed machine-readable information in AI-generated images, videos, and audio that identifies the system used, creation date, and other relevant details, while also ensuring users and platforms can detect this content without excessive cost. Social media platforms and other large online services must display these labels prominently and prevent tampering with the disclosure information.
The legislation defines "covered AI-generated content" as digital material substantially created or modified by AI in ways that would deceive a reasonable person into thinking it was human-made. It prohibits knowingly selling tools designed to circumvent these disclosures or falsely labeling non-AI content as AI-generated. The Federal Trade Commission enforces the disclosure requirements, while the Justice Department can prosecute violations of the anti-circumvention provisions, with penalties up to $2,500 per violation or $25,000 total, potentially tripled for repeat offenses. States and affected AI companies can also sue violators.
The bill establishes a working group led by the National Institute of Standards and Technology to develop technical standards and best practices within one year. Exemptions apply to internal research and nonprofit libraries or educational institutions, and good-faith researchers can bypass protections for security testing purposes. The working group must terminate sixty days after submitting its report to Congress.
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