The Legal Guide to AI Disclosure: What You Must Tell Callers

Published February 10, 2025 · 7 min read

FCC, state laws, and best practices. Stay compliant and build trust with your customers.

Quick Answer: Yes, you must disclose you're using an AI receptionist to callers in most US jurisdictions. Call IQ handles this automatically. Here's everything you need to know.

Why AI Disclosure Matters

As of 2025, several states have enacted or are considering legislation requiring businesses to disclose when consumers are interacting with artificial intelligence. Failing to disclose can result in significant penalties — up to $10,000 per violation in some states.

State	Status	Key Requirements	Penalties
California	Enacted (AB 2905, effective 2025)	Disclosure required for AI use in certain consumer interactions	Varies
Utah	Enacted (SB149, 2024; amended SB226, 2025)	Disclosure required for "high-risk AI interactions" including legal, medical, and financial advice	Varies
New Jersey	Enacted (effective 2025)	Unlawful to use AI bot to mislead consumers about its artificial identity to incentivize transactions	$2,500 (1st), $5,000 (2nd), $10,000 (subsequent)
Maine	Enacted (June 2025)	Disclosure required if AI could mislead reasonable consumer into thinking they are interacting with a human	Up to $1,000 per violation
Alabama	Pending (HB 516)	Disclosure required if AI may mislead reasonable person	UDAP violation
Hawaii	Pending (HB 639)	Disclosure required before consumer interacts with chatbot	UDAP violation
Illinois	Pending (HB 3021)	Disclosure required – violation even if consumer not actually misled	Unlawful practice
Massachusetts	Pending (SB 243)	Disclosure required regardless of whether consumer is misled or damaged	UDAP violation

⚠️ Extraterritorial Reach: Even if your business is not located in a state with an AI disclosure law, you may still need to comply if your customers are located in that state. For example: A Texas law firm using an AI receptionist must comply with Utah's disclosure law if a potential client from Salt Lake City calls. This is why we recommend keeping AI disclosure enabled on all calls.

How Call IQ Handles AI Disclosure

Call IQ handles AI disclosure automatically. Our AI says:

"Hi, you've reached [Your Business]. I'm Call IQ, an AI receptionist. How can I help you today?"

This simple disclosure accomplishes three things:

✅ Legal compliance — You meet disclosure requirements in all 50 states
✅ Builds trust — Customers appreciate transparency
✅ Sets expectations — Callers know they're interacting with AI, not a human

What About Website Disclosure?

We also recommend adding a line to your website footer or contact page:

"Calls are answered by Call IQ, an AI receptionist. By calling us, you agree to speak with an automated system."

This adds an extra layer of transparency and helps with state-level compliance where AI disclosure is required on websites as well.

⚖️ Can I disable AI disclosure? Yes, but only after signing an indemnity form accepting full legal responsibility. We strongly recommend keeping it enabled. It's the simplest way to stay compliant across all 50 states.

The Bottom Line

AI disclosure isn't just a legal requirement in many states — it's also a best practice for building trust with your customers. Call IQ makes it automatic and effortless. You never have to think about it again.

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