What is an AI Transparency Notice?

Definition

A transparency notice tells people that AI plays a role in a decision that affects them. It usually covers what the system does, what categories of data feed it, and what rights the person has. Several states require a notice before or when the decision happens, not weeks later.

See also our AI compliance glossary for short definitions of common terms.

Which regulations require this

• Illinois Biometric Information Privacy Act (BIPA)

  Requires informed written consent before collecting biometric data including facial geometry, fingerprints, and voice...

  ILAI-specificHighIn effect
• Colorado AI Act (SB 24-205)

  Requires developers and deployers of high-risk AI systems to use reasonable care to protect consumers from algorithmi...

  COAI-specificHighUpcoming
• NYC Local Law 144 (Automated Employment Decision Tools)

  Requires employers using automated employment decision tools in NYC to conduct annual independent bias audits and not...

  NYCAI-specificHighIn effect
• Illinois Human Rights Act - AI Amendment (HB 3773)

  Amends Illinois Human Rights Act to prohibit employer use of AI that results in discrimination against protected clas...

  ILAI-specificHighIn effect
• California Transparency in Frontier AI Act (SB 53)

  Requires developers of frontier AI models trained above the compute threshold set in statute (very large scale) to pu...

  CAAI-specificHighIn effect
• Illinois AI Video Interview Act (820 ILCS 42)

  Requires employers using AI to analyze video interviews to notify candidates, explain how AI is used, and obtain cons...

  ILAI-specificMediumIn effect
• California AI Transparency Act (SB 942)

  Requires providers of AI systems with 1M+ monthly users to implement content provenance disclosures and AI detection...

  CAAI-specificMediumUpcoming
• Washington SB 5395 - AI in Health Insurance Prior Authorization

  Regulates use of AI in health insurance prior authorization decisions. Requires human review of AI-generated denials.

  WAAI-specificMediumUpcoming
• Connecticut SB 1103 - Automated Employment Decision Tools

  Requires employers using automated decision tools in employment to conduct impact assessments, provide notices, and a...

  CTAI-specificMediumIn effect
• FTC Enforcement Policy on AI and Algorithmic Fairness

  FTC has signaled it will use existing Section 5 authority to pursue deceptive or unfair AI practices, including biase...

  FEDERALFederalMediumIn effect
• Washington My Health My Data Act

  Broad health data privacy law covering health data collected outside HIPAA, including data from health-related AI too...

  WAPrivacy ADMMediumIn effect
• New York Responsible AI Safety and Education Act (RAISE Act, A 9449)

  Requires developers of frontier AI models operating in New York to implement safety protocols, conduct impact assessm...

  NYAI-specificMediumUpcoming
• Connecticut Public Act 25-113 (SB 1295) - CTDPA and profiling amendments

  Amends the Connecticut Data Privacy Act and related law. Expands applicability, strengthens minors and online safety...

  CTPrivacy ADMMediumIn effect
• Maryland HB 1202 - Facial Recognition in Hiring

  Prohibits employers from using facial recognition technology during job interviews without written consent from the a...

  MDAI-specificMediumIn effect
• New Jersey AI in Hiring Notification Act

  Requires employers to notify job candidates when AI or automated tools are used to screen or evaluate their application.

  NJAI-specificMediumIn effect
• California AI Training Data Transparency Act (AB 2013)

  Requires developers of generative AI systems or services made available to Californians to publish high-level documen...

  CAAI-specificMediumIn effect
• California Healthcare AI Deceptive Terms Act (AB 489)

  Prohibits AI systems from falsely claiming healthcare professional licenses or credentials. Requires disclosures when...

  CAAI-specificMediumIn effect
• California Companion Chatbots Act (SB 243)

  Requires safety protocols and disclosures for AI chatbots aimed at emotional companionship. Includes protections for...

  CAAI-specificMediumIn effect
• New York Personalized Algorithmic Pricing Disclosure (S 3008, 2025)

  Requires businesses to disclose when personalized pricing is set by an algorithm using personal data so consumers kno...

  NYAI-specificMediumIn effect
• Utah AI Mental Health Chatbot Regulation (HB 452)

  Regulates AI-powered mental health chatbots. Requires clear disclosure that the service is not a human clinician, lim...

  UTAI-specificMediumIn effect
• Texas Responsible AI Governance Act (RAIGA)

  Prohibits development and deployment of AI systems for behavioral manipulation, unlawful discrimination, and certain...

  TXAI-specificLowIn effect
• Utah Artificial Intelligence Policy Act (SB 149)

  Requires disclosure when consumers interact with generative AI. Establishes AI learning lab for regulatory sandboxing.

  UTAI-specificLowIn effect
• Washington AI Content Disclosure Act (HB 1170)

  Requires disclosure and content provenance metadata when AI is used to generate or substantially modify content distr...

  WAAI-specificLowUpcoming
• Utah AI Policy Act Amendments (SB 226)

  Builds on the Utah Artificial Intelligence Policy Act with additional generative AI disclosure duties and updates tie...

  UTAI-specificLowIn effect

Which states reference this obligation

What you should do next

• Match notice timing to each state rule, whether before the decision or at first meaningful contact.
• Use plain language that a busy reader can follow without a technical glossary.
• Describe how to reach a human, appeal, or opt out where the law gives that path.
• Post notices where users and employees actually see them, not only in a policy PDF.
• Version and date notices so you can prove what was in place on a given day.