Companies using artificial intelligence in advertising would need to disclose the use of AI-generated imagery in advertising under legislation approved Wednesday by the state House.

House Bill 95 was approved with bipartisan support — 124-78 — and now goes to the Senate.

The House passed similar legislation two years ago only to see that measure die in the Senate, said Rep. Chris Pielli, D-Chester, the prime sponsor of HB 95. Two years ago, the legislation was “proactive,” he said. “Now, we’re playing catch-up with technology on AI regulation, and it’s only getting more advanced.”

The legislation exempts media companies from penalties for violating the law if they unknowingly air, stream or publish advertising containing AI-generated imagery.

“As AI becomes more sophisticated, it will be impossible to verify the author of material and content,” Pielli said. “Additionally, the questionable veracity of some of the AI content has the potential to spread false information or images. The current law puts a responsibility on consumers, with buyer beware requirements … But how can a consumer fulfill the responsibility when they don’t know what they’re looking at is real or not?”

Violations of the law would be prosecuted under the state’s Unfair Trade Practices and Consumer Protection Law, which calls for civil penalties up to $1,000 per offense and up to $3,000 per offense if the victim is 60 or older. Businesses that ignore injunctions obtained under the law can be hit with a $5,000 fine, and the attorney general can petition the courts to bar companies from doing business in the state.

Flurry of AI bills

A flurry of AI-related bills have been moving at the state Capitol in recent weeks.

Lawmakers approved House Bill 2314 on June 3, requiring the attorney general’s office to create a public education campaign on recognizing AI-generated content. The legislation is now in the Senate Communication and Technology Committee.

The House Health Committee also advanced legislation setting guardrails on the use of AI in health care. Under House Bill 1925, hospitals and insurance companies would be required to notify patients about how and when AI is used. The legislation would also require that medical professionals review any recommendation made by AI. That bill has not been taken up by the full House yet.

On the other side of the Capitol, the Senate Communications and Technology Committee approved legislation on June 10 barring “nudification” technology that uses AI to generate imagery of people without their clothes. The bill has not been considered by the full Senate yet. And in May, Gov. Josh Shapiro’s administration sued Character.AI alleging chatbots on the platform were giving medical advice.