S. 2367: AI Accountability and Personal Data Protection Act

This bill, known as the AI Accountability and Personal Data Protection Act, seeks to create legal protections regarding the unauthorized use of individuals' personal data, particularly concerning artificial intelligence (AI) systems. Here’s a summary of the key components of the bill:

Purpose of the Bill

The main goal of the bill is to establish a federal tort (a wrongful act leading to civil legal liability) which holds individuals or entities accountable if they mishandle covered data without obtaining the clear and prior consent from the individuals to whom that data belongs.

Definitions

- **Covered Data**: Refers to any information that can identify an individual, including both explicit data (like names and addresses) and any derived or inferred data, as well as copyrights of content produced by the individual.- **Artificial Intelligence System**: This includes any software or hardware that utilizes AI technology.- **Generative AI System**: A specific type of AI that can create new content (text, images, etc.) based on the data it processes.- **Express, Prior Consent**: Defined as a clear and affirmative indication given by an individual before their data is used or exploited.

Liability for Data Misuse

- Entities that use covered data without the express, prior consent of the individual will be held liable for their actions.- Individuals affected can bring civil actions against the wrongdoers in appropriate courts, seeking various forms of damages or other legal remedies.

Legal Actions and Remedies

Individuals whose data has been misused can recover:- Actual damages or profits made from the unauthorized use or exploitation of their data.- A minimum of $1,000 in damages, if applicable.- Punitive damages, injunctive relief, and reimbursement for legal fees.

Consent Requirements

The bill specifies that consent for data usage is valid only if:- The affected individual is informed about all third parties involved in the data handling.- This information must be presented separately from privacy policies or terms of service agreements to ensure it is acknowledged by the individual.

Impact on Arbitration Agreements

The bill invalidates any predispute arbitration agreements that would otherwise prevent individuals from bringing claims in court regarding their data misuse. Courts, rather than arbitrators, will decide on these matters.

Relationship to Existing Laws

This legislation will not override existing state laws that may provide greater protection concerning personal data. Instead, it acts as a minimum standard that states can build upon if they choose to implement additional protections.

Relevant Companies

None found