Utah has a brand new law that regulates generative AI

On March 15, 2024, the Governor of Utah signed a bill that implements new law in the state regulating the use and development of artificial intelligence.  Here are some key things you should know about the law.

  • The statute adds to the state’s consumer protection laws, which govern things such as credit services, car sales, and online dating. The new law says that anyone accused of violating a consumer protection law cannot blame it on the use of generative AI (like Air Canada apparently attempted to do back in February).
  • The new law also says that a person involved in any act covered by the state’s consumer protection laws asks the company she’s dealing with if she is interacting with an AI, the company has to clearly and conspicuously disclose that fact.
  • And the law says that anyone providing services as a regulated occupation in the state (for example, an architect, surveyor or a therapist) must disclose in advance any use of generative AI. The statute outlines the requirements for these notifications.
  • In addition to addressing consumer protection, the law also establishes a plan for the state to further innovation in artificial intelligence. The new law introduces a regulatory framework for an AI learning laboratory to investigate AI’s risks and benefits and to guide regulation AI development.
  • The statute discusses requirements for participation in the program and also provides certain incentives for the development of AI technologies, including “regulatory mitigation” to adjust or ease certain regulatory requirements for participants and reduce potential liability.

This law the first of its kind and other states are likely to enact similar laws. Much more to come on this topic.

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