Utah Legislature Passes AI Bill which Amends the Utah Consumer Protection Act
Utah’s legislature passed SB 149 earlier this month, which applies consumer protection laws to generative artificial intelligence use, requires private sector entities to disclose or respond to inquiries about their use, and creates the Office of Artificial Intelligence Policy to administer an AI learning laboratory program. The bill is awaiting Governor Spencer Cox’s signature, set to go into effect on May 1, 2024.
The bill adds generative artificial intelligence to Utah’s consumer protection statutes, stating that an entity’s use of AI does not excuse it from complying with the laws enforced by the Utah Division of Consumer Protection. It states that generative AI is not a defense to a violation if it made a violative statement, undertook the act, or was used in furtherance of the violation. Generative artificial intelligence is defined as an AI system trained on data, interacting with humans through text, audio, or visual communication, and producing non-scripted outputs with minimal human oversight.
The bill establishes disclosure obligations for generative artificial intelligence use, dividing it into two categories: those who use or cause AI to interact with a person, and those providing regulated occupation services. The first category must clearly disclose that the person is interacting with AI, not a human, if asked or prompted. The second category is for “regulated occupations” that require a license or state certification. Those providing services in these occupations have an affirmative obligation to disclose when interacting with generative artificial intelligence. This disclosure must be made verbally at the start of an oral exchange or conversation and through electronic messaging before a written exchange.
The bill establishes the Office of Artificial Intelligence Policy, responsible for creating and administering an AI learning laboratory program. This laboratory will develop and recommend future regulation of AI technologies. Participants can apply for regulatory mitigation through a law-created structure, allowing them to utilize artificial intelligence technology in Utah.
The bill affects the Utah Consumer Protection Act by amending it to now include synthetic data as a definition addition to deidentified data, which is generated by computer algorithms or statistical models and does not contain personal data.
Those who violate the law could face an administrative fine of up to 2,500 and a civil penalty of up to 5,000, according to the proposed statute. A person who uses a generative AI model to commit a crime, such as using AI to create a telephone solicitation, could be subject to criminal charges. The Utah Division of Consumer Protection will enforce the disclosure obligations, with the Division potentially imposing an administrative fine of up to $2,500 for each violation.
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This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.