Senate Bill 1205 Printer's Number 1482

PENNSYLVANIA, March 2 - (14) "Dynamic pricing" means as follows:

(i) The practice of varying the prices of essential goods or

services within a 24-hour period based on demand or other

factors, including through the use of artificial intelligence or

an artificial intelligence model that retrains or recalibrates

based on received information.

(ii) The term does not include bona fide pricing.

(iii) For purposes of this paragraph:

(A) "Artificial intelligence" means all of the following:

(I) A machine-based system that can, for a given set of

human-defined objectives, make predictions, recommendations or

decisions influencing real or virtual environments, including

the ability to:

(a) perceive real and virtual environments;

(b) abstract perceptions made under this paragraph into

models through analysis in an automated manner; and

(c) use model inference to formulate options for information

or action based on outcomes under units (a) and (b).

(II) The term includes generative artificial intelligence.

(B) "Artificial intelligence model" means a component of an

information system that implements artificial intelligence

technology and uses computational, statistical or machine

learning techniques to produce outputs from a given set of

inputs.

(C) "Bona fide pricing" means genuine, nonfictitious pricing

at which essential goods or services are openly and actively

offered to the public on a regular basis for a reasonably

substantial period of time, without using inflated former prices

to create deceptive or illusory discounts, in accordance with 16

CFR 233.1 (relating to former price comparisons).

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