Utah’s Artificial Intelligence Policy Act aims to protect consumers and ensure transparency in AI use across industries. Key provisions include disclosure rules, liability for misuse, and the creation of an AI regulatory office.
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. It could position Utah as a leader in responsible AI governance and set a model for other states to follow.
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 is a former AmLaw 100 partner, with more than 16 years of experience in technology transactions, including at Jones Day, Mayer Brown, and Duane Morris. Mr. Mago advises on a wide array of sourcing, technology and other commercial transactions and helps companies navigate legal issues raised by data, emerging technologies, and digital transformation, both on the buyer and provider side. He routinely advises clients on IP strategy, management, and monetization arrangements, leveraging his technology background and business experience.
Published March 1, 2024. The law may have changed since. This publication is intended for general education and informational purposes only, and should not be regarded as either legal advice or a legal opinion. You should not act upon or use this publication or any of its contents for any specific situation. Recipients are cautioned to obtain legal advice from their legal counsel with respect to any decision or course of action contemplated in a specific situation. Maxson Mago & Macaulay, LLP and its attorneys provide legal advice only after establishing an attorney-client relationship through a written attorney-client engagement agreement. This publication does not establish an attorney-client relationship with any recipient.
