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

• SB 149

Resources

• Utah Legislature Passes Private Sector AI Bill (Husch Blackwell LLP.)
• UTAH ENACTS AI-FOCUSED CONSUMER PROTECTION BILL (Mayer Brown)
• Utah to Require Disclosure of Artificial Intelligence (Cozen O’Connor)
• Utah Updates Consumer Privacy and Protection Acts with AI-Focused Provisions (Akin Gump Strauss Hauer & Feld LLP)

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