Utah Governor Spencer Cox has signed into law the Artificial Intelligence Policy Act, legislation aimed at establishing a robust governance framework for the development and deployment of AI technologies within the state. Senate Bill 149, as the AI Policy Act is known, introduces several key components to regulate the use of AI and protect consumers.
The AI Policy Act defines crucial terms such as “artificial intelligence” and “generative AI” while outlining distinctions between various types of data. It imposes liability on businesses utilizing generative AI without proper disclosure, ensuring consumer protection. Additionally, providers of licensed professional services must conspicuously disclose interactions involving generative AI.
Within the Department of Commerce, an Office of Artificial Intelligence Policy will be established, led by a director. This office will oversee the state’s AI governance endeavors, including administering an AI Learning Laboratory program, consulting with businesses on regulatory proposals, establishing rules and procedures for the Learning Laboratory, and reporting annually to the legislature on its findings and recommendations.
At the heart of the AI Policy Act is the creation of an AI Learning Laboratory Program, tasked with analyzing the risks, benefits, impacts, and policy implications of AI technologies. The program aims to foster AI development within the state, evaluate existing and proposed AI regulations with companies, and provide recommendations for AI legislation and regulations. The Laboratory will periodically set a “learning agenda” to study specific AI areas, and companies can participate as “participants” to receive temporary “regulatory mitigation” to test their AI applications under state supervision.
Participants seeking regulatory mitigation must demonstrate technical expertise, financial resources, and consumer benefits outweighing risks. These agreements outline the scope of AI use, user/geographic limits, safeguards, and regulatory mitigations granted, with relevant state agencies providing oversight.
The Office will establish rules governing application procedures, participant selection criteria, data usage limits, disclosure requirements, reporting mandates, and extension criteria. Participants are subject to laws and regulations not expressly waived, with terms initially set at 12 months. The Act enables criminal culpability for using generative AI in the commission of crimes and sets a repeal date of May 1, 2025, for its provisions.
If you have questions or concerns about how to navigate Utah’s new bill, or any other AI regulation or bill, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight, and ensure you’re informed and compliant.
