This legislation, titled the "AI Labeling Act of 2026," aims to enhance transparency regarding content generated or significantly altered by artificial intelligence. It establishes requirements for both providers of generative AI systems and covered online platforms to ensure consumers are aware when they are interacting with AI-generated digital content. Providers of generative AI systems must label covered AI-generated content with a clear and conspicuous disclosure that identifies it as AI-generated, is accessible to individuals with disabilities, and is embedded within the content. Additionally, a machine-readable disclosure must be bound or embedded, detailing the content's AI origin, the system and version used, and the creation/modification date. Providers must also ensure detectability of AI content by users or platforms and collaborate with online platforms for compliance. Covered online platforms are required to clearly and conspicuously identify AI-generated content that incorporates these machine-readable disclosures. They must not tamper with or remove such disclosures and should provide users with options to make content provenance information readily available. Platforms are also tasked with making a good faith effort to combat the "liar's dividend" by implementing strategies recommended by the Federal Trade Commission (FTC). The bill also mandates that artificial intelligence chatbots include a clear and conspicuous disclosure identifying them as such. Enforcement of these provisions falls under the purview of the Federal Trade Commission , treating violations as unfair or deceptive acts. The FTC is authorized to promulgate regulations, including specifying exceptions and establishing safe harbors for compliance. Furthermore, the legislation prohibits knowingly enabling, facilitating, or concealing the circumvention or falsification of these disclosures, as well as manufacturing or offering products designed for such purposes. Exceptions are provided for internal research and development, nonprofit libraries and educational institutions (with caveats), good-faith researchers, and law enforcement activities. The Attorney General of the United States is empowered to bring civil actions against those who violate the prohibitions on disclosure circumvention, with courts able to grant injunctions and award statutory damages. States and private parties (AI system providers or online platforms harmed by violations) can also bring civil actions, subject to notification and intervention rights by the Attorney General. A key component is the establishment of an AI-generated Content Consumer Transparency Working Group , convened by the Director of the National Institute of Standards and Technology in coordination with the FTC. This Working Group, comprising diverse stakeholders, is tasked with developing technical standards, guidelines, and best practices for identifying, labeling, and detecting AI-generated content. It will also provide guidance on technical and economic feasibility, and research the impact of disclosures on consumer behavior, ultimately reporting recommendations to Congress.