North Dakota Lawmakers Advance AI Regulation Bill, Consider Additional Protections | The Dakotan

BISMARCK, N.D. — North Dakota lawmakers moved a proposed law forward on Tuesday that would set new rules for artificial intelligence (AI), create a statewide AI Council, and protect consumers as the technology continues to grow.

On October 20, the Legislature’s interim Artificial Intelligence and Data Center Committee voted to recommend the proposal to Legislative Management for review before the 2027 legislative session.

The proposal, known as Legislative Council draft 27.0359.1000, is partly based on a law passed in Texas. It would set rules for how AI is developed and used in North Dakota.

Under the proposal, AI systems that interact with consumers would have to tell users that they are talking to AI, not a human.

The proposal would also ban developers from deliberately using AI systems to encourage people to hurt themselves, commit violence, or take part in criminal activity. Other rules would limit certain uses of biometric data, such as information used to identify people, and personal images without permission.

The North Dakota Attorney General’s Office would mainly be responsible for enforcing the law. However, committee members questioned whether individuals should also be allowed to take companies to civil court if they break the law.

Representative Mary Schneider raised concerns about giving the Attorney General the only main enforcement role. She suggested that people harmed by AI should have other legal ways to seek help.

The proposal would also create a seven-member Artificial Intelligence Council. The council would study AI development, identify problems with existing rules, and suggest policy changes.

Another part of the proposal would create a regulatory sandbox program. This would let participating businesses test new AI systems for a limited time while receiving exemptions from certain regulations.

Committee members discussed how to support new technology while also protecting people who live in North Dakota.

The bill moved forward with the understanding that lawmakers could make more changes as it goes through the legislative process.

More AI Laws Are Being Developed

The committee also reviewed a proposed law focused on AI chatbots used by children.

The proposal would ban certain tactics designed to manipulate children into becoming emotionally dependent on chatbots. It would also require chatbots to identify themselves as AI and set protections related to sexually explicit content and self-harm.

Representatives from the Children’s Advocacy Centers of North Dakota supported the proposal but suggested adding more protections. They recommended making clear whether AI-powered toys sold to children would also be covered by the law.

Committee members decided not to move the chatbot proposal forward yet. Instead, they held it back so it could be revised further.

Separately, Senator Jose Castaneda agreed to keep working with citizen committee member Mark Hagerott on a proposal about advanced AI systems, human control, and protecting critical infrastructure.

These proposals are still being developed and could be introduced separately during the upcoming legislative session.

The bill that advanced on Tuesday must still go through further review. It would need approval from the Legislature and the governor before it could become law.