After its introduction in the Senate on January 25, 2024, Utah’s Senate Bill 149, referred to as the Artificial Intelligence Policy Act, has been approved by the Utah Legislature and will be sent to the Governor for his approval. The bill focuses on protecting consumers and ensuring accountability for deceptive practices involving AI.
Key provisions include:
Definition of AI and GenAI
- The bill defines AI as a machine-based system that makes predictions, recommendations, or decisions influencing real or virtual environments.
- GenAI is defined in the bill as an artificial system trained on data, interacting with individuals through text, audio, or visual communication, and generating non-scripted outputs like a human, often with limited or no human oversight.
Liability
The bill imposes liability on the utilization of AI that violates consumer protection laws if not disclosed adequately.
Disclosure
The bill requires AI chatbots to disclose that they are powered by artificial intelligence when the user initiates or asks, particularly in sensitive industries such as healthcare and finance.
The Office
- The bill creates the Office of Artificial Intelligence Policy and a regulatory AI Analysis Program.
- This Office will:
- Oversee an AI learning laboratory program to assess risks, technologies, and policy;
- Develop rules for AI programs and exemptions; and
- Consult with businesses and stakeholders on regulatory proposals.
Regulatory Mitigation
- The bill introduces temporary regulatory relief during the pilot testing and development of new AI technologies in Utah, aimed at mitigating regulatory impacts.
- Participants seeking to employ AI technology in Utah can pursue regulatory mitigation, provided they meet specific criteria outlined by the Office, including technical proficiency, sufficient financial resources, and a comprehensive approach to identifying, monitoring, and mitigating risks during testing, among other requirements.
The legislation will become effective on May 1, 2024, potentially positioning Utah as a leader in responsible AI governance and setting a model for other states to follow.
You can access the bill and monitor its progress by following this link.
Looking for guidance on your AI implementation journey? Connect with Ajay Mago or any member of EM3’s Artificial Intelligence practice for professional support.
Ajay Mago, Managing Partner at Maxson Mago & Macaulay, LLP (EM3 Law LLP).
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