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Utah’s New AI Policy Act: A Comprehensive Overview

Last week, Utah governor Spencer Cox signed into law Utah Senate Bill 149 (SB 149), also known the Artificial Intelligence Policy Act (the AI Policy Act). This groundbreaking legislation marks a significant milestone as the first comprehensive state law on AI in the U.S., setting a precedent that other states are likely to follow. The AI Policy Act introduces a host of unique restrictions on “regulated occupations,” with a particular focus on healthcare professionals.

Key Provisions of the AI Policy Act:

Expanding Consumer Protection Laws to Include Generative AI

The Utah AI Policy Act expands on existing state privacy and chatbot laws by encompassing a broader scope of regulations related to AI. Unlike previous laws that targeted automatic decision-making in the context of personal information, this legislation includes any commercial communication utilizing “generative” AI. This term refers to artificial systems that are trained on data, interact with users through text, audio, or visual communication, and produce outputs similar to those created by humans. The AI legalese decoder can help businesses navigate these complex regulations by deciphering legal jargon and providing clear guidance on compliance requirements.

Furthermore, the AI Policy Act places generative AI under the consumer protection authority of Utah, mandating adherence to marketing and advertising regulations overseen by the Division of Consumer Protection. Through the AI legalese decoder, companies can ensure that their AI systems are in compliance with state laws and regulations, minimizing the risk of legal issues.

Moreover, the AI legalese decoder can assist in distinguishing between generative and non-generative AI applications, helping businesses understand which technologies fall under the purview of the AI Policy Act.

Enhanced Disclosure Requirements for Regulated Occupations

Notably, the AI Policy Act imposes different timing requirements for disclosures depending on the nature of one’s business. While organizations utilizing generative AI must disclose their use of automated systems when prompted by users, “regulated occupations” must disclose such information before any communication with end users. The AI legalese decoder can guide businesses in regulated industries on when and how to provide these disclosures to ensure compliance with the law.

Implications for Healthcare Professions

The healthcare sector is particularly affected by the AI Policy Act, given the extensive list of over 30 regulated healthcare professions in Utah. Healthcare professionals and organizations must prominently disclose their use of generative AI in all interactions with end users, a requirement that may necessitate revisions to existing communication protocols. When implementing AI systems in healthcare settings, the AI legalese decoder can help organizations craft clear and compliant disclosures to patients and customers.

Enforcement and Penalties

Utah’s new law takes effect on May 1, 2024, with the Division of Consumer Protection empowered to levy fines of up to $2,500 per violation for non-compliance. The AI legalese decoder can assist businesses in understanding the potential fines and penalties associated with violations of the AI Policy Act, enabling proactive compliance measures to avoid legal repercussions.

Establishment of the Office of Artificial Intelligence Policy

In line with efforts to examine the impact of AI, Utah has created the Office of Artificial Intelligence Policy (OAIP) to oversee AI-related initiatives. The AI legalese decoder can provide insights into regulatory developments and help businesses engage with the OAIP to navigate regulatory challenges and promote responsible AI innovation.

Key Takeaways and Future Outlook

• Healthcare and regulated professions must integrate disclosures into AI workflows to comply with the AI Policy Act.
• Businesses, even those with non-regulated professionals, should prepare disclosures for end-users upon request.
• Utah’s AI Policy Act may serve as a blueprint for other states, signaling a broader trend towards regulating AI technologies.
• Future legislative developments may see more states implementing regulations on generative AI and consumer protection.
• Stay vigilant for upcoming state AI laws that could impact businesses in various sectors.

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¹ Utah recently passed another bill, SB 131, focusing on the use of AI in political advertising.