S4754

An Act concerning the unauthorized practice of a profession and supplementing Title 45 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. Any conduct which is prohibited under Title 45 of the Revised Statutes or under any regulation administered by the Director of the Division of Consumer Affairs or a board or committee within the Division of Consumer Affairs as the unauthorized practice of a profession or occupation shall include the production of content by artificial intelligence or generative artificial intelligence. Any person or entity that deploys an artificial intelligence or generative artificial intelligence system, or any person or entity who develops an artificial intelligence or generative artificial intelligence system, shall be considered to have engaged in the unauthorized practice of a profession or occupation if content is produced in the manner described in this section.

b. Any law under Title 45 of the Revised Statutes or under any regulation administered by the Director of the Division of Consumer Affairs or a board or committee within the Division of Consumer Affairs, or regulation established thereunder, that prohibits the use of specified terms, letters, or phrases to indicate or imply possession of a license, certificate of registration, or certification to practice a profession or occupation, without at that time having the appropriate license, certificate of registration, or certification required for that profession or occupation, shall be enforceable against a person or entity who develops or deploys an artificial intelligence or generative artificial intelligence system or device that uses one or more of those terms, letters, or phrases in the advertising or functionality of an artificial intelligence or generative artificial intelligence system, program, device, or similar technology.

c. This section shall not apply to a person who is authorized to practice a particular profession or occupation and is in good standing in the State if that person uses an artificial intelligence or generative artificial intelligence system, program, device, or similar technology in the course of the professional’s practice so long as any content produced by or with the use of an artificial intelligence or generative artificial intelligence system, program, device, or similar technology is labeled with a disclaimer that indicates to the consumer that provides:

(1) that a communication was generated by generative artificial intelligence, as specified; and

(2) clear instructions describing how a consumer may contact a human professional or employee.

d. In addition to the authority of the Director of the Division of Consumer Affairs, the appropriate professional or occupational board may pursue an injunction or restraining order to enforce the provisions of this section.

e. Any person who, following notice and a hearing, has been found to have engaged in the conduct specified in subsections a. or b. of this section shall:

(1) immediately cease and desist from practicing that profession or occupation, as ordered by the director or a professional or occupational board; and

(2) be liable to a penalty of not more than $10,000 for the first offense, and not more than $20,000 for each subsequent offense, to be recovered by the director or the professional or occupational board within the Division of Consumer Affairs.

f. Any proceeding instituted pursuant to this section shall be in addition to any other proceeding authorized by section 10 of P.L.1978, c.73 (C.45:1-23), or by any other law.

g. As used in this section:

“Artificial intelligence” means the development of software and hardware and the end-use application of technologies that are able to perform tasks normally requiring human intelligence, including, but not limited to, visual perception, speech recognition, decision-making, translation between languages, and generative artificial intelligence, which generates new content in response to user inputs of data.

“Generative artificial intelligence” means an artificial intelligence system that is capable of generating text, images, videos, or other data in response to prompts.

2. This act shall take effect immediately.

STATEMENT

This bill provides that content created by artificial intelligence is subject to the prohibitions against the unauthorized practice of a profession. Specifically, the bill provides that conduct which is prohibited the law as the unauthorized practice of a profession as determined by the Director of the Division of Consumer Affairs includes the production of content by artificial intelligence or generative artificial intelligence. Further, under the bill, any person or entity that deploys an artificial intelligence or generative artificial intelligence system, or any person or entity who develops an artificial intelligence or generative artificial intelligence system will be considered to have engaged in the unauthorized practice of a profession if content is produced in the manner described in the bill.

The bill provides that any law or regulation that prohibits the use of specified terms, letters, or phrases to indicate or imply possession of a license or certificate to practice a profession, without at that time having the appropriate license or certificate required for that practice or profession, will be enforceable against a person or entity who develops or deploys an artificial intelligence or generative artificial intelligence system or device that uses one or more of those terms, letters, or phrases in the advertising or functionality of an artificial intelligence or generative artificial intelligence system, program, device, or similar technology.

The bill creates an exception to its provisions for a professional who is authorized to practice a particular profession and is in good standing in the State if that professional uses an artificial intelligence or generative artificial intelligence system, program, device, or similar technology in the course of the professional’s practice so long as any content produced by or with the use of an artificial intelligence or generative artificial intelligence system, program, device, or similar technology is labeled with a disclaimer that indicates to the consumer that provides:

(1) that a communication was generated by generative artificial intelligence, as specified; and

(2) clear instructions describing how a consumer may contact a human professional or employee.

The bill provides enforcement mechanisms for violations of its provisions, including civil penalties and injunctive relief.