Customer-facing AI chatbots, virtual assistants, and automated response systems. Here is what Michigan businesses need to know in 2026.
Michigan does not yet have a specific law for this use case, but HB 5891 — AI in Employment. Employers using AI for screening must disclose to candidates and provide appeal process.
State law does not replace federal law — you must comply with both. These federal rules apply to chatbot disclosure nationwide:
Michigan's HB 5891 — AI in Employment often includes size-based exemptions. Businesses with fewer than 25 employees may be exempt, but should verify thresholds. Always review the specific statute for employee count and revenue thresholds.
The key deadline in Michigan is 2027. The law is still developing — monitor for final rules.
Michigan penalties for AI non-compliance: TBD. While enforcement is still developing, companies found non-compliant face civil penalties and potential litigation.
Federal law does not currently preempt state AI laws. Michigan's HB 5891 — AI in Employment applies independently of federal rules. Federal laws like ECOA, FCRA, and HIPAA also apply alongside state law — so you must comply with both.
Best practice: document all AI systems used, conduct an internal audit, implement required disclosures, and keep records for at least 3 years. For high-risk uses like chatbot disclosure, consider hiring an independent third-party auditor to validate compliance.
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