Arizona is doubling down on its commitment to responsible artificial intelligence (AI) with two major developments: the launch of the state’s first AI Steering Committee and the signing of new legislation requiring physician oversight in health insurance denials influenced by AI.
Governor Katie Hobbs announced the formation of the Artificial Intelligence Steering Committee in May, a multi-sectoral body tasked with guiding the ethical, transparent, and inclusive use of AI across Arizona. Just days later, on May 27, House Bill 2175 was signed into law, ensuring that medical treatment denials in Arizona health insurance plans cannot be made without review by a licensed physician.
Together, the initiatives reflect a growing consensus among Arizona leaders that emerging technologies must serve people—not sideline them.
“Artificial Intelligence is rapidly transforming how we live, work, and govern,” Hobbs said. “Arizona has a responsibility to lead with integrity while spurring innovation in this growing high-tech sector.”
The new AI Steering Committee includes experts in law, healthcare, education, technology, and civil rights, and will draft a statewide policy framework for AI adoption. Among its members are Dr. Diana Bowman of Arizona State University’s College of Law, Dr. Loretta Cheeks of DS Innovation, and Ryan Johnson, Chief Privacy Officer at Savvas Learning Company. The committee will hold its first meeting in May and aims to publish its recommendations by spring 2026.
Meanwhile, the newly enacted House Bill 2175—sponsored by Rep. Julie Willoughby (R-13), the House Majority Whip—mandates that any denial of medical treatment based on medical necessity must be personally reviewed by an Arizona-licensed physician. The law specifically prohibits decisions based solely on automated systems or AI tools.
“This law ensures that a doctor, not a computer, is making medical decisions,” Willoughby said. “If care is denied, it should be by someone with the training and ethical duty to put patients first.”
The legislation responds to growing public unease over AI’s role in healthcare, particularly around automated prior authorization and claim denials. Critics say AI-driven tools can streamline operations but lack the human judgment needed for nuanced clinical decisions. The law, set to take effect July 1, 2026, provides insurers with over a year to bring their processes into compliance.
Both initiatives underscore Arizona’s effort to lead not only in tech adoption but also in tech accountability. Governor Hobbs’ AI Steering Committee will recommend procurement guidelines and governance models, promote AI literacy, and engage with communities to ensure inclusive implementation.
In the health sector, HB 2175 establishes a precedent for patient-centered AI oversight, reinforcing that automated tools should support—not replace—human expertise. The bill received bipartisan support, further highlighting the shared understanding that critical decisions affecting people’s lives must be held to the highest standards.
“This is about ensuring AI works for the public good—whether it’s in a state agency or a doctor’s office,” Hobbs said.
Rep. Willoughby echoed that sentiment: “Arizona families deserve real oversight when it comes to life-changing medical decisions. This law puts patients ahead of profits and restores a layer of accountability that’s long overdue.”
Arizona’s dual oversight—on strategic innovation and individual rights—signals a forward-thinking approach to governing AI, one that may soon inspire similar moves across other U.S. states.
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