Senate Bill 2354

AN ACT TO CREATE THE ARTIFICIAL INTELLIGENCE FRAUD AND ACCOUNTABILITY ACT; TO DEFINE ARTIFICIAL INTELLIGENCE FRAUD; TO CREATE A CIVIL CAUSE OF ACTION FOR PERSONS OR ENTITIES INJURED OR DAMAGED BY ARTIFICIAL INTELLIGENCE FRAUD; TO PROVIDE REMEDIES; TO ALLOW THE COURT TO AWARD PUNITIVE DAMAGES UPON A FINDING OF KNOWING AND WILLFUL VIOLATION; TO ALLOW INJURED PERSONS OR ENTITIES TO FILE A CAUSE OF ACTION FOR A TEMPORARY OR PERMANENT INJUNCTION AGAINST VIOLATORS OF THIS ACT; TO PROVIDE THAT A PERSON OR ENTITY WHO KNOWINGLY DEVELOPS OR USES ARTIFICIAL INTELLIGENCE FOR FRAUDULENT PURPOSES MAY BE HELD JOINTLY AND SEVERALLY LIABLE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) This act shall be known and may be cited as the "Artificial Intelligence Fraud and Accountability Act."

(2) As used in this section:

(a) "Artificial intelligence fraud" means the use of artificial intelligence systems to deceive, impersonate or obtain money, property, data or other assets from another person; and

(b) "Artificial intelligence systems" includes, but is not limited to, deepfakes, voice cloning, generative text or image tools, chatbots or automated decision-making systems.

(3) (a) Any person or entity injured or damaged by artificial intelligence fraud as defined herein may bring a cause of action in the court having jurisdiction in the county in which the violator resides, has his or her place of business, or where the act or practice prohibited in this section allegedly occurred, to seek compensatory damages or statutory damages in the amount of Five Hundred Dollars ($500.00) per violation, whichever is greater. Such injured person or entity shall also be entitled to recover reasonable attorney's fees and other litigation costs reasonably incurred.

(b) In any action brought under this section, if the court finds clear and convincing evidence that a person or entity knowingly and willfully engaged in a transaction or trade practice with a consumer in which the consumer was or is harmed by artificial intelligence fraud, the injured party may recover, at the court's discretion, punitive damages under Section 11-1-65.

(c) Upon a violation of this section, any person or entity affected by such violation may bring a cause of action against violators to restrain by temporary or permanent injunction the use of such fraudulent method, act or practice involving artificial intelligence fraud. The action shall be brought in the chancery or county court of the county in which such person resides or has his or her principal place of business, or, with the consent of the parties, may be brought in the chancery court of the county in which the State Capitol is located. Courts are authorized to issue temporary or permanent injunctions to restrain and prevent violations of this chapter, and such injunctions shall be issued without bond.

(4) Any person or entity which knowingly develops, deploys or facilitates artificial intelligence systems for the purpose of fraudulent behavior may be held jointly and severally liable for resulting damages.

SECTION 2. This act shall take effect and be in force from and after July 1, 2026.