AI Labeling Act of 2023 (S. 2691 / H.R. 6466)

1. Overview

A bicameral law called the AI Labelling Act of 2023 aims to specify when audio and visual output is created using generative AI or artificial intelligence software. Senators John Kennedy (R-LA) and Brian Schatz (D-HI) first introduced the Senate’s version, S. 2691, on July 27, 2023. On November 21, 2023, Representative Tom Kean Jr. (R-NJ-7) introduced the House’s version, H.R. 6466.

2. Scope of the Law

Generative AI system developers who produce multimedia content, such as audio, video, and images, are included in the bill. The bill mandates that these developers provide clear and apparent disclosures that the content was produced using artificial intelligence. This disclosure is meant to inform users when they are interacting with an AI chatbot or watching content produced by AI.

3. Key Provisions

Disclosure Obligation: Developers have to make disclosures regarding when content is generated through the use of AI.

Scope of Application: This bill is applicable to any software or application utilizing a Generative AI system that generates images, videos, sound, or multimedia items, even for enjoyment.

Enforcement: The Federal Trade Commission (FTC) enforces these labeling requirements and prescribes the requirements for this bill

4. Penalties & Enforcement

The bill has clearly spelled out the elements of disclosure, but left out how the noncompliance will be handled. The Federal Trade Commission (FTC) will enforce this bill since it has jurisdiction to act against any unfair or deceptive use of AI-generated content.

5. Notable Cases or Precedents

So far, given that it is a bill yet to be enacted into law, there has been no case under the act heard or published to the public. However, the legal arena for AI-created content, and the question of deepfakes, is an area of debate.

6. Comparison to Global Standards

The structure of AI Labeling in 2023 concurs with the worldwide initiatives towards bringing the technology of deep fakes under regulation. The European Union, for instance, has stricter standards on high-risk applications by classifying AI systems by risk levels via the AI Act. Likewise, under the Online Safety Act 2023 in the UK, criminalizing the creation and dissemination of deepfakes with malicious intent is prohibited. The AI Labeling Act of 2023 stands out, however, because it directly confronts the issue of transparency through mandatory labeling of a great deal of AI-generated multimedia content.

7. Practical Implications

For Developers: Simply say that your content is AI-created. Make this easy to locate.

For Consumers: They will have better details regarding content, allowing them to make more informed decisions about what they read or interact with.

For Legal Professionals: Get updates on the new regulations and advise their clients accordingly to abide by the rules properly.

8. Future Outlook

Increased use of deepfakes in politics has led to the introduction of the AI Labeling Act of 2023, which is a reflection of the increased concerns over its misuse by ill-intentioned individuals. The bill, even though not yet a law, indicates that legal frameworks must be enforced in matters pertaining to the new kinds of technological threats to election integrity.