If your company builds large-scale artificial intelligence (AI) tools used by over one million consumers — such as systems that generate marketing images, create audio content, or power customer-facing chatbots — a new Washington state law may affect how you operate.  Governor Bob Ferguson signed Engrossed Second Substitute House Bill 1170 (HB 1170) into law on March 24, 2026, and this new law will take effect on February 1, 2027.

What does the law do?

HB 1170 is about transparency in content creation.  It requires customer-facing content to carry a digital marker, called “provenance data,” whenever AI has been used to significantly change images, videos, or audio; so that customers will know that it was AI-generated.  Provenance data will act like a watermark for the content.

The law also requires government agencies that interact with the public using AI-powered tools (such as chatbots on their websites) to clearly disclose to users that they are communicating with AI, rather than with a human being.

Who does this apply to?

The “provenance data” requirements apply to “covered providers,” which is defined as companies or individuals that build generative AI systems with over one million users and whose AI systems are publicly available within Washington state to consumers for personal use.  Examples of covered providers include OpenAI, Midjourney, and Claude.

State, local, and tribal governments are not included as covered providers.  In addition, this requirement does not apply to business-to-business uses, sales, licensing, or distribution of AI systems.  It also exempts video games, interactive online shopping experiences, and systems used solely for technical functions like upscaling or compression.

What counts as a significant change?

The provenance data marker requirements only apply to significant changes to content, using AI.  Standard edits such as adjusting brightness, cropping, adding filters, resizing, or removing background noise in audio do not trigger the provenance data requirements.

How government agencies comply with HB 1170.

Government agencies have specific requirements for their disclosures to alert consumers that they are interfacing with an AI system rather than with a human being (even when it is obvious that AI is being used).  The disclosure (1) must be clear and easy to see on the website, (2) must be written in plain language, and (3) may not use a dark background.  An agency can also create a link to a separate webpage for consumers to see the disclosure.

What are the risks of noncompliance?

The provisions of HB 1170 cannot be waived by covered providers, and any attempt to do so will be void and unenforceable as against public policy.  The Washington Attorney General will have the exclusive authority to bring an action to enforce this law, and a violation will be treated as an unfair and deceptive act in trade or commerce and unfair competition under the Washington state Consumer Protection Act.

What should businesses do now?

Even if your company will not be a “covered provider” as defined under HB 1170, this moment presents an opportunity to assess how your business uses AI-generated content before the law goes into effect, in February 2027.

• Audit your AI tools and identify which vendors you use to generate or modify images, audio, or video content. Confirm whether they qualify as covered providers.
• If you license AI systems, check whether your contracts address the provenance data obligations.
• Consider adding clear guidelines and policies for your business regarding the use of generative AI, both internally and externally.

We are here to help

Navigating the fast-changing world of AI can feel daunting, but you don’t have to do it alone.  Our team is actively tracking new developments in AI, and we are ready to help you understand how HB 1170 affects your specific business.  Whether you need a compliance review, contract updates, or simply a conversation about what this means for your business, the team at Lasher is here to help.