Does Nebraska Conversational Artificial Intelligence Safety Act (LB 525) require Transparency & Disclosure?

Nebraska • enacted

Yes — 2 provisions

Requirements at a glance

This regulation imposes 7 specific requirements for Transparency & Disclosure across 2 provisions:

Minor Account Holder Artificiality Disclosure #

Obligation:
Transparency
enacted
Effective:
Jul 1, 2027
Risk tier:
limited-risk
Scope:
Operators — any natural person or legal entity that makes available a conversational artificial intelligence service to the public (sec. 13(6)(a)). A conversational AI service is a publicly accessible software application, web interface, or program that primarily simulates human conversation through textual, visual, or aural communication (sec. 13(2)(a)); excluded are developer- and researcher-facing tools, features inside a non-conversational product, narrow-and-discrete-topic outputs, business-facing commercial products, speaker and voice-assistant interfaces, internal business use, and pure customer-service bots (sec. 13(2)(b)(i)-(vii)). Mobile app stores and search engines are not operators merely for providing access (sec. 13(6)(b)). The duty runs to minor account holders — account holders the operator has actual knowledge or reasonable certainty are under 18 (sec. 13(4)-(5))
upcominghigh-impact
The act is not yet codified into numbered Neb. Rev. Stat. sections on the face of the slip law, so provisions here are cited to the session-law section numbers of LB 525. Two design choices separate Nebraska from the other 2026 state chatbot statutes: a persistent visible disclaimer is an accepted substitute for the three-hour reminder cadence, which Washington's ESHB 2225 does not allow, and the duty attaches to minor *account holders* rather than to any minor user, so an operator that runs no accounts never triggers it.

Requirements

RequirementDetails
Disclose artificiality to minor account holdersClearly and conspicuously disclose to each minor account holder that they are interacting with artificial intelligence (sec. 14(1))
Persistent-disclaimer routeThe disclosure may be satisfied by a persistent visible disclaimer (sec. 14(1)(a))
Session-and-cadence routeAlternatively, disclose at the beginning of each session and at least every three hours in a continuous interaction (sec. 14(1)(b)(i)-(ii))
Minor determination standardA minor is an individual the operator has, based upon the circumstance, actual knowledge or reasonable certainty is younger than eighteen (sec. 13(4))

Penalties

ViolationFine
Attorney General enforcementThe Attorney General may enforce the act and may bring a civil action for appropriate relief against an operator, on behalf of the State of Nebraska or on behalf of any person aggrieved by a violation (sec. 18(1), sec. 18(2)(a))
Relief availablePreliminary and other equitable or declaratory relief; an award of actual damages; reasonable expenses of bringing the action including court costs, reasonable attorney's fees, investigative costs, witness fees, and deposition costs (sec. 18(2)(b)(i), (ii), (iv))
Civil penaltiesAt least $1,000 per violation, but no more than $500,000 per operator; penalties recovered are remitted to the State Treasurer under Article VII, section 5 of the Nebraska Constitution (sec. 18(2)(b)(iii))
Private right of actionNone — nothing in the act shall be interpreted as creating a private right of action (sec. 18(3))
Developer carve-outThe act creates no liability for the developer of an AI model for a violation by a conversational AI system developed by a third-party operator to provide a service for that developer (sec. 18(4))

General Artificiality Disclosure and Mental Health Representation Bar #

Obligation:
Transparency
enacted
Effective:
Jul 1, 2027
Risk tier:
limited-risk
Scope:
Operators of conversational AI services (sec. 13(6)(a)) as to all users, not only account holders. The disclosure duty is conditional: it applies where a reasonable person interacting with the service would be misled to believe the interaction is with a human (sec. 15)
upcominghigh-impact
Unlike Washington's unconditional disclosure, Nebraska's general duty triggers only on the reasonable-person misleading test, so a service that is obviously artificial owes nothing under sec. 15 — the account-based minor duty in sec. 14(1) is the unconditional one. Sec. 17 bars only the explicit representation that the service is designed to deliver professional mental or behavioral health care, and it carries a knowing-and-intentional scienter element, so incidental therapeutic-sounding output is not itself a violation.

Requirements

RequirementDetails
Conditional artificiality disclosureIf a reasonable person interacting with the service would be misled to believe they are interacting with a human, clearly and conspicuously disclose that the service is artificial intelligence (sec. 15)
No professional mental health claimsDo not knowingly and intentionally cause or program the service to make any representation or statement that explicitly indicates the service is designed to provide professional mental or behavioral health care (sec. 17)
Scienter standardThe sec. 17 bar reaches only conduct that is both knowing and intentional on the part of the operator (sec. 17)

Penalties

ViolationFine
Attorney General enforcementThe Attorney General may enforce the act and may bring a civil action for appropriate relief against an operator, on behalf of the State of Nebraska or on behalf of any person aggrieved by a violation (sec. 18(1), sec. 18(2)(a))
Relief availablePreliminary and other equitable or declaratory relief; an award of actual damages; reasonable expenses of bringing the action including court costs, reasonable attorney's fees, investigative costs, witness fees, and deposition costs (sec. 18(2)(b)(i), (ii), (iv))
Civil penaltiesAt least $1,000 per violation, but no more than $500,000 per operator; penalties recovered are remitted to the State Treasurer under Article VII, section 5 of the Nebraska Constitution (sec. 18(2)(b)(iii))
Private right of actionNone — nothing in the act shall be interpreted as creating a private right of action (sec. 18(3))
Developer carve-outThe act creates no liability for the developer of an AI model for a violation by a conversational AI system developed by a third-party operator to provide a service for that developer (sec. 18(4))
View full regulation View obligation Obligation matrix