North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S963

Introduced
4/30/26  
Refer
5/4/26  

Caption

AI Chatbots-Licensing, Safety, & Privacy

Impact

If enacted, SB 963 would significantly impact existing state laws regarding the use of AI and data privacy. The regulation would mandate that chatbot providers maintain rigorous standards for data protection and privacy, particularly in sensitive health information contexts. This not only serves to enhance user protection but also holds platforms accountable for their operational practices. Additionally, the establishment of a licensing requirement for chatbots that engage with users on health matters implies a broader trend towards formal oversight in technology's application in critical areas such as healthcare.

Summary

Senate Bill 963, known as the Chatbot Licensing, Safety, and Privacy Act, aims to regulate the use of artificial intelligence chatbots within North Carolina. It introduces a licensing framework for chatbots that process health-related information, ensuring that platforms comply with safety protocols and privacy protections for users. The bill stipulates that entities using chatbots for health purposes must obtain a license, which includes stringent requirements for data handling, security measures, and user consent processes. This legislative initiative reflects an increasing concern about the implications of AI technologies on personal data and mental health.

Sentiment

The sentiment surrounding SB 963 appears generally supportive among legislators and advocacy groups focused on privacy and safety; however, there is concern among technology providers regarding the regulatory burden it may impose. Proponents argue that the bill is a necessary step toward ensuring accountability and user protection in the rapidly evolving landscape of artificial intelligence. Detractors, including some tech industry stakeholders, express concern that the legislation might stifle innovation by imposing heavy compliance costs and regulatory hurdles.

Contention

Notable points of contention regarding SB 963 include the balance between necessary regulation and fostering innovation in technology. Critics argue that while user safety and privacy are paramount, the bill could potentially hinder the development of beneficial AI services by creating an environment where compliance is overly burdensome. Furthermore, discussions center on the definition of what constitutes a 'covered platform,' which could impact a wide range of entities, eliciting debate over the thresholds for regulation and the scope of the bill's application.

Companion Bills

No companion bills found.

Previously Filed As

NC S624

AI Chatbots - Licensing/Safety/Privacy

NC SB1119

Companion chatbots: children’s safety.

NC AB2023

Companion chatbots: children’s safety.

NC SB168

Regulate the use of chatbots by minors.

NC HB324

Artificial intelligence; age verification systems required for chatbots, safeguard protocols required, therapy chatbot requirements established, private right of action and enforcement provided for

NC AB1609

Customer service chatbots.

NC HB641

AN ACT relating to mental health chatbots.

NC SB243

Companion chatbots.

NC SB867

Toys: companion chatbots.

NC H301

Social Media & AI Safety

Similar Bills

No similar bills found.