New Bill Seeks to Regulate Use of AI in Consumer Relations

The bill aims to determine the information that suppliers must provide to consumers and the responsibilities they have when using Artificial Intelligence (AI) in the offering and delivering of their goods and services.

Based on the text of the bill, its main rationale is ensuring that the use of AI in consumer relations secures consumers' rights and freedom of choice. It also highlights the need to train consumers to detect vulnerabilities that may arise from the use of AI in the supply of goods and services, and to make informed and safe decisions.

The bill defines the term "artificial intelligence" as the "set of algorithms and techniques that allow a computer system to simulate human cognitive processes, such as learning, decision-making and pattern recognition." It also defines "automated decisions" as those "actions taken by artificial intelligence systems without direct human intervention, based on algorithms and data analysis."

In turn, the bill establishes that suppliers will have the obligation to inform consumers of the use of AI in the provision of goods and services and to provide an explanation about the operation of the system and the data used to make decisions. The bill also includes suppliers’ obligation to guarantee that the implemented AI systems do not amplify unfair bias or discrimination based on gender, race, religion, or sexual orientation, and that suppliers will be responsible for any damage to consumers’ rights that may be caused by automated decisions. Further, sanctions for not complying with the provisions established in Law 24240 could involve fines, the suspension of commercial activities, or the removal of licenses.

Accordingly, the bill proposes amending article 4 of Law 24240, which establishes the duty of information for providers of goods and services, extending it to include the use of AI in the products and services they offer.

Finally, the bill proposes modifying article 8 of the Law, which regulates the supply of goods and services and the effects of their advertising, so that providers inform consumers when the use of AI is involved in images, audios, videos and/or any digital support used in advertisements, commercials, social networks, or any means of dissemination.