United States of America: South Carolina Artificial Intelligence Act (S 963) was introduced to Senate including disclosure obligations

On 26 February 2026, the South Carolina Artificial Intelligence Act was introduced to the Senate to establish transparency obligations for artificial intelligence (AI) systems interacting with consumers. The Act mandates that developers and deployers making an AI system available for consumer interaction must disclose that the consumer is communicating with an automated system, except when such interaction is obvious to a reasonable person. Furthermore, deployers must provide clear notices before using high-risk AI to make consequential decisions, including a description of the system, its purpose, and instructions for human review or appeals. Consumers are granted the right to correct personal data processed by the system and to receive explanations regarding the data sources and logic contributing to adverse decisions. The South Carolina Attorney General holds exclusive enforcement authority, treating violations as unfair trade practices. Certain federal entities and healthcare recommendations are exempt from these provisions. While the Act establishes a rebuttable presumption of reasonable care for compliant entities, it explicitly denies a private right of action for individual consumers. To support implementation, the Attorney General is empowered to promulgate specific rules regarding the format and timing of these mandatory consumer disclosures. The Act takes effect upon approval by the Governor.