Washington – The Computer & Communications Industry Association will testify today before the Maryland Senate Finance Committee in opposition to HB 952, legislation that would establish new liability standards and regulatory requirements for artificial intelligence chatbot systems.
CCIA supports thoughtful, evidence-based efforts to address online safety and mental health risks affecting minors. However, the association will warn that HB 952, as currently drafted, creates significant legal uncertainty and operational challenges that could undermine the development and deployment of innovative AI tools. The bill would impose a three-day complaint review and response requirement that may be impractical for AI systems capable of generating millions of interactions each day.
In testimony to the committee, CCIA will also raise concerns about provisions that treat chatbot outputs as defective products subject to strict liability standards traditionally applied to manufactured goods. Applying product liability frameworks designed for physical defects to contextual, generative software systems is unprecedented and could expose developers to broad liability risk. The bill would also create a separate privacy regime specific to chatbot services that may conflict with existing federal and state privacy laws and established sector-specific regulations.
CCIA will urge lawmakers to consider amendments that preserve the bill’s intent while improving clarity, ensuring constitutional soundness, and aligning requirements with practical implementation realities.
The following statement can be attributed to Kyle Sepe, State Policy Manager, Northeast Region at CCIA:
“HB 952 takes an unworkable approach to regulating AI chatbots by imposing strict liability standards and unrealistic response timelines. These provisions create significant legal uncertainty and could discourage responsible innovation without improving safety outcomes. Policymakers should focus on practical, evidence-based solutions that align with existing privacy laws and recognize the realities of generative AI technology.”
