Lawmakers propose ban on AI companies selling health data

A new proposal would ban the sale of Americans' health and location information to data brokers - including information people reveal to an AI chatbot like ChatGPT or Claude. Senator Elizabeth Warren (D-MA) and Representative Mary Gay Scanlon (D-PA) are planning to debut a new version of the Health and Location Data Protection Act. The former version of the bill, first introduced in June 2022, prohibited data brokers from collecting and selling health and location data.

The updated bill expands the ban to include other companies selling such data to brokers. It specifically covers information shared with AI chatbots, addressing concerns about the rapidly evolving technology. The bill's revival comes as concerns about data privacy continue to grow.

The original bill was introduced in response to reports that data brokers were selling sensitive information, including health and location data. The updated proposal reflects lawmakers' efforts to adapt to emerging technologies and ensure consumer protections keep pace. Why this matters: The proposed ban on selling health and location data has significant implications for the AI industry and data brokers.

If passed, the bill would limit the types of data that AI companies can collect and sell, potentially curtailing the business practices of companies that rely on such data. For developers and businesses, this could mean reevaluating data collection and sharing practices to ensure compliance. Consumers would benefit from enhanced protections, but the bill's impact on the broader data ecosystem and AI innovation remains to be seen.

Questions also arise about the bill's enforceability and potential loopholes. Ultimately, the proposal highlights the growing tension between data-driven innovation and consumer privacy concerns.