Customer-facing AI chatbots, virtual assistants, and automated response systems. Here is what Minnesota businesses need to know in 2026.
Minnesota has enacted Minnesota Consumer Data Privacy Act (Minn. Stat. ch. 325M) — automated-decision / profiling opt-out. Minnesota's Consumer Data Privacy Act lets consumers opt out of profiling and automated decisions that produce legal or similarly significant effects, question the result of a profiling decision and learn how to change future outcomes, and requires controllers to complete data-protection assessments. No standalone Minnesota 'AI Transparency Act' exists.
State law does not replace federal law — you must comply with both. These federal rules apply to chatbot disclosure nationwide:
It depends on the thresholds written into the specific statute, and those are not comparable across laws — some key on employee count or revenue, others on user volume or on the kind of system you deploy. We do not publish a generic small-business exemption for Minnesota, because stating one the statute does not contain would be worse than stating none. Read the primary source linked from our Minnesota law page to confirm whether you are in scope.
The key deadline in Minnesota is In effect since July 31, 2025. This law is already in effect — you must comply now.
Minnesota penalties for AI non-compliance: Up to $7,500 per violation. Who enforces, and how, varies by statute — check the primary source linked from our Minnesota law page for the enforcement authority and process that actually applies to you.
Federal law does not currently preempt state AI law. Minnesota's AI statutes apply independently of federal rules, and federal laws like ECOA, FCRA, and HIPAA apply alongside them — 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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