Utah AI Act’s Impact on Healthcare and Other Regulated Occupations

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On March 13, Utah Governor Spencer Cox signed into law the Artificial Intelligence Policy Act (the Act), governing the use of generative artificial intelligence (AI) and beginning what will likely be a continually growing body of state law governing the use of AI models.

The Act applies to certain regulated occupations and companies whose activities are regulated by Utah’s Division of Consumer Protection, as described in more detail below. The Act goes into effect on May 1, 2024, giving entities fewer than two months to prepare to comply with its obligations.

Generative AI

Generally, the Act governs the use of generative AI, which is defined under the Act as an artificial system that has the following criteria:

  1. Is trained on data.
  2. Interacts with a person using text, audio, or visual communications.
  3. Generates non-scripted outputs similar to outputs created by a human, with limited or no human oversight.

This would likely apply to many common commercial uses of AI, including chatbots and other customer service communications.

Applicability

The Act applies to the use of generative AI by the following two categories of persons:

  1. Persons who use, prompt, or otherwise cause generative AI to interact with an individual in connection with any act administered and enforced by the Utah Division of Consumer Protection under U.C.A. 13-2-1, including health spa services, telemarketing, credit services, and music licensing.
    • If asked or prompted by any such individual, the person is required to “clearly and conspicuously” disclose to the individual that the individual is interacting with generative AI and not a human.
  1. Persons who provide the services of a regulated occupation.
    • Unlike the above where the obligation to disclose arises only if the individual “asked or prompted,” persons in regulated occupations are required to immediately and “prominently” disclose when an individual is interacting with generative AI while receiving the regulated services. This disclosure must be provided verbally at the onset of an oral exchange and through electronic message before a written exchange.
    • “Regulated occupation” is defined by the Act to mean any occupation regulated by the Utah Department of Commerce in which a person is required to obtain a license or state certification to practice their occupation. Regulated occupations include physician and surgeon, nursing, veterinary, dentistry, accountancy, pharmacy and other occupations listed here.

Penalties

While there is no private right of action for violations of the Act, the Utah Director of the Division of Consumer Protection is granted the right to impose administrative fines of up to $2,500 for each violation. Additionally, the Director may seek judicial relief and Utah courts are granted the power to issue injunctions, order disgorgement of any money received in violation of the Act, order payment of disgorged money to persons injured by such violation, impose fines of up to $2,500 per violation, and award any other relief it deems reasonable and necessary. There are also potential civil penalties of up to $5,000 for violations of administrative or court orders.

Office of Artificial Intelligence Policy and Learning Lab

The Act also established an Office of Artificial Intelligence Policy, which has the power to create and oversee a “learning lab” program to research and analyze the risks, benefits, and impacts of AI in an effort to inform regulators and policymakers as they develop further legislation governing the use of AI. Entities selected to participate in the learning lab program will be eligible to enter into a “regulatory mitigation agreement” with the state, which specifies limitations on the participant’s use of AI technology and safeguards to be implemented, as well as the regulatory requirements to be waived or mitigated for the participant for a limited period of time.

To be eligible for the learning lab program, an entity must have sufficient technical expertise, sufficient financial resources to meet testing obligations, and an effective plan to monitor and minimize identified risks. Additionally, the applicable AI system must provide substantial consumer benefits that outweigh the risks of regulatory mitigation.

Our team will continue to monitor the Act and similar legislation. If you have any questions about how the Act could affect your business, please contact the authors.

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Firm Publication

On March 13, Utah Governor Spencer Cox signed into law the Artificial Intelligence Policy Act (the Act), governing the use of generative artificial intelligence (AI) and beginning what will likely be a continually growing body of state law governing the use of AI models.

The Act applies to certain regulated occupations and companies whose activities are regulated by Utah’s Division of Consumer Protection, as described in more detail below. The Act goes into effect on May 1, 2024, giving entities fewer than two months to prepare to comply with its obligations.

Generative AI

Generally, the Act governs the use of generative AI, which is defined under the Act as an artificial system that has the following criteria:

  1. Is trained on data.
  2. Interacts with a person using text, audio, or visual communications.
  3. Generates non-scripted outputs similar to outputs created by a human, with limited or no human oversight.

This would likely apply to many common commercial uses of AI, including chatbots and other customer service communications.

Applicability

The Act applies to the use of generative AI by the following two categories of persons:

  1. Persons who use, prompt, or otherwise cause generative AI to interact with an individual in connection with any act administered and enforced by the Utah Division of Consumer Protection under U.C.A. 13-2-1, including health spa services, telemarketing, credit services, and music licensing.
    • If asked or prompted by any such individual, the person is required to “clearly and conspicuously” disclose to the individual that the individual is interacting with generative AI and not a human.
  1. Persons who provide the services of a regulated occupation.
    • Unlike the above where the obligation to disclose arises only if the individual “asked or prompted,” persons in regulated occupations are required to immediately and “prominently” disclose when an individual is interacting with generative AI while receiving the regulated services. This disclosure must be provided verbally at the onset of an oral exchange and through electronic message before a written exchange.
    • “Regulated occupation” is defined by the Act to mean any occupation regulated by the Utah Department of Commerce in which a person is required to obtain a license or state certification to practice their occupation. Regulated occupations include physician and surgeon, nursing, veterinary, dentistry, accountancy, pharmacy and other occupations listed here.

Penalties

While there is no private right of action for violations of the Act, the Utah Director of the Division of Consumer Protection is granted the right to impose administrative fines of up to $2,500 for each violation. Additionally, the Director may seek judicial relief and Utah courts are granted the power to issue injunctions, order disgorgement of any money received in violation of the Act, order payment of disgorged money to persons injured by such violation, impose fines of up to $2,500 per violation, and award any other relief it deems reasonable and necessary. There are also potential civil penalties of up to $5,000 for violations of administrative or court orders.

Office of Artificial Intelligence Policy and Learning Lab

The Act also established an Office of Artificial Intelligence Policy, which has the power to create and oversee a “learning lab” program to research and analyze the risks, benefits, and impacts of AI in an effort to inform regulators and policymakers as they develop further legislation governing the use of AI. Entities selected to participate in the learning lab program will be eligible to enter into a “regulatory mitigation agreement” with the state, which specifies limitations on the participant’s use of AI technology and safeguards to be implemented, as well as the regulatory requirements to be waived or mitigated for the participant for a limited period of time.

To be eligible for the learning lab program, an entity must have sufficient technical expertise, sufficient financial resources to meet testing obligations, and an effective plan to monitor and minimize identified risks. Additionally, the applicable AI system must provide substantial consumer benefits that outweigh the risks of regulatory mitigation.

Our team will continue to monitor the Act and similar legislation. If you have any questions about how the Act could affect your business, please contact the authors.

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