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Utah Enacts the Utah AI Policy Act (UAIPA)

05 Jun

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Update Applicable to:Effective date
All employersMay 1, 2024


What happened?

On March 13, 2024, the Utah Artificial Intelligence Policy Act (UAIPA) was signed into law by Governor Spencer Cox, and it requires disclosure from entities utilizing generative AI with clients, limits the liability of AI for consumer protection law infringements, and establishes the Office of AI Policy to supervise AI programs.


What are the details?

The generalities of the UAIPA:

  • Imposes distinct disclosure obligations on two groups:
    • (1) businesses under the Utah Department of Commerce jurisdiction, must configure their public-facing AI to disclose its nature when prompted by a user.
    • (2) individuals in regulated occupations using AI tools in their services must disclose the use of AI at the start of any interaction, without user prompting.
  • Definitions of synthetic data are included on personal data to provide protections: click here.
  • Establishes a broad definition of “generative AI”: click here.
  • Establishes disclosure requirements for entities using generative AI with customers: click here.
  • Restricts entities from blaming generative AI for statements that violate consumer protection laws: click here.
  • Enforcement and Rulemaking click here.
  • Allows for temporary mitigation of regulatory impacts during AI pilot testing.


For employers:

  • Employers using generative AI tools in their operations must disclose this to their customers. This could impact customer-facing roles and require changes in how interactions are managed.
  • If an employer operates in a regulated occupation, any use of AI tools in connection with licensed services must be disclosed at the onset of any interaction. This could affect professions such as accounting, various medical professions, court reporting, and interior design.
  • The law allows for temporary mitigation of regulatory impacts during AI pilot testing. This could encourage employers to experiment with AI technologies in their operations.
  • The establishment of this program could provide employers with valuable insights into the risks and benefits of current AI technology.
  • The office’s rulemaking authority over AI programs and regulatory exemptions could impact how employers implement and manage their AI systems.

Utah, leading in consumer protection with AI, could serve as a benchmark for other states. The updated UCPA, by defining synthetic data, assures organizations of its lawful use. This and consumer transparency and liability measures simplify Utah’s AI regulations for organizations.


Business Considerations

  • Employers should familiarize themselves with the UAIPA and its requirements and be mindful of the new requirements as they develop their AI programs.
  • Employers should update their privacy policies to align with the definitions and provide clear guidance for using synthetic data in Utah.
  • Employers should develop mechanisms for disclosing the use of AI to customers and clients.
  • Employers should train and ensure their staff are aware of the UAIPA and understand when and how to disclose the use of AI.
  • Employers should keep up to date with any changes to the UAIPA and other relevant laws to stay compliant.


Source References


Resources

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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