Policy makers are reassessing AI regulation, stressing that effective rules should target harmful conduct and fit existing laws. New York Senate Bill S7263 would hold chatbot owners liable if the tool's outputs resemble unauthorized professional activity. Critics argue the term 'substantive' is ill-defined, creating uncertainty for product design and potentially limiting access to useful AI tools, especially for small businesses. Proponents say existing consumer-protection rules should suffice, while the article argues for a liability framework tied to actual risk and distributed along the AI value chain. It suggests preserving low-risk, informational uses and preventing over-filtering. The piece concludes that clearer standards and a focus on real risks would support safer, more innovative deployment.
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