Utah has taken a pioneering step in the regulation of artificial intelligence (AI) with the passage of the Artificial Intelligence Policy Act (SB0149). Signed by Governor Cox on March 13, 2024, and effective from May 1, 2024, this legislation integrates into Utah's consumer protection laws and introduces specific obligations for entities using AI systems.
Key definition:
"Generative artificial intelligence" means an artificial system that: (i) is trained on data; (ii) interacts with a person using text, audio, or visual communication; and (iii) generates non-scripted outputs similar to outputs created by a human, with limited or no human oversight.
Key Components of the Act:
Disclosure Obligations:
The Act introduces disclosure obligations in two primary contexts:
Responsive Disclosure: For activities under the Utah Division of Consumer Protection (e.g., telemarketing, charitable solicitations), entities using generative AI must disclose their use of AI when asked or prompted by consumers.
Proactive Disclosure for Regulated Occupations: For services in regulated occupations (e.g., accountants, architects, healthcare professionals), there is a requirement to proactively disclose the use of generative AI at the beginning of interactions, whether oral or written.
Office of Artificial Intelligence Policy and Learning Laboratory Program:
The legislation establishes the Office of Artificial Intelligence Policy and the Artificial Intelligence Learning Laboratory Program. These entities are tasked with analyzing and researching AI technologies to inform Utah's regulatory framework for AI.
Penalties for Non-Compliance:
Entities failing to comply with the disclosure requirements may face administrative fines up to $2,500 and civil penalties up to $5,000 per violation.
Safe Harbor for Innovation:
The Program offers a safe harbor for participants to test their AI applications under regulatory supervision. This "regulatory mitigation" aims to encourage innovation while ensuring consumer protection. Participants seeking this mitigation must demonstrate technical expertise, financial resources, and that consumer benefits outweigh potential risks.
Regulatory Framework:
The Office will establish rules governing application procedures, participant selection criteria, disclosure requirements, and reporting mandates for the Program. These regulations are expected to provide further clarity on the implementation of the Act.
Utah's Artificial Intelligence Policy Act represents a significant development in the regulation of AI within the United States. By introducing disclosure obligations and establishing a regulatory framework for AI, the Act aims to balance consumer protection with the promotion of innovation in the AI sector. As this legislation takes effect, it will be important to monitor its impact on both AI development and consumer rights in Utah.
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