The New York State Senate has just moved Bill S7263 to its third reading — a controversial proposal that could dramatically restrict how ordinary citizens use AI tools for legal and medical advice.
If passed, the law would hold AI companies and chatbot operators legally liable for providing “substantive advice” in professions reserved for licensed professionals (lawyers, doctors, psychologists, pharmacists, engineers, veterinarians, and more).
Even clear disclaimers like “I am not a lawyer/doctor” would not protect the company from lawsuits.
What Does Bill S7263 Actually Say?
The bill does not ban citizens from asking AI questions. Instead, it creates strong civil (and potentially criminal) liability for the proprietors (owners/operators) of AI systems if their chatbot gives advice that amounts to unauthorized practice of a regulated profession.
Key points:
- Applies to 14 regulated professions
- Liability even if the AI includes disclaimers
- Allows harmed users to sue for damages + attorney fees
- Passed the Internet and Technology Committee 6-0 on March 6, 2026
Privacy + Cyber + AI Angle
This is not just another consumer protection bill. It’s one of the first major U.S. attempts to regulate AI at the intersection of:
- Privacy — protecting sensitive health and legal data from AI hallucinations or leaks
- Cybersecurity — addressing risks when AI gives dangerous medical or legal advice
- AI accountability — forcing companies to implement hard safeguards (e.g. automatic blocks on certain advice or mandatory redirection to humans)
Critics call it professional protectionism — a way for lawyers and doctors to shield themselves from AI competition. Supporters (led by Sen. Kristen Gonzalez) argue it’s about protecting citizens from harmful misinformation.
What This Means for AI Companions
If the bill becomes law:
- Apps like Nomi, Kindroid, Replika, and even Claude in Copilot will have to be extremely careful with health and legal topics.
- Companies may be forced to implement strict content blocks.
- Fully local, open-source solutions (like OpenClaw and Clawra) could gain even more popularity, since they fall outside the same regulatory pressure.
Current Status (as of March 24, 2026)
- Passed committee stage (6-0)
- Now in third reading in the Senate
- If passed, it would take effect 90 days after the governor signs it.
What do you think?
Should ordinary people be allowed to ask AI for legal or medical advice without a licensed professional? Is this law protecting citizens — or protecting professions from competition?
Write your honest opinion in the comments — the most interesting ones will be featured in our next article!
Sources (March 2026):
- New York State Senate – Bill S7263: https://www.nysenate.gov/legislation/bills/2025/S7263
- Press release by Sen. Kristen Gonzalez (March 6, 2026)
- Holland & Knight – “New York Bill Would Create Liability for Chatbot Proprietors” (March 6, 2026)
- Reason.com – “This New York bill would protect lawyers from AI competition” (March 4, 2026)
- StateScoop – “New York bill would ban chatbots from giving legal, medical advice” (March 3, 2026)
- Reuters – “Proposed New York law would bar AI chatbots from posing as lawyers” (March 5, 2026)
- Fast Company – “New York lawmakers want AI chatbots to stop pretending to be doctors or lawyers” (March 6, 2026)