Utah’s Artificial Intelligence Policy Act Goes into Effect May 1; Businesses Must Disclose Generative AI Use in Consumer-Facing Environments (Including Chatbots and Written or Oral Telemarketing Communications)
Utah’s Artificial Intelligence Policy Act (Act) requiring disclosure of generative AI use in interaction with consumers is going into effect today, May 1, 2024. This is a one of the first developments of this kind and a considerable legislative advancement compared to California’s limited 2019 “Bot Disclosure Law” which prohibits the use of bots to mislead the other person about its artificial identity to incentivize a transaction or influence a vote in an election.
Disclosure Requirements
The Act creates two types of AI disclosure requirements:
- Proactive Disclosure: Persons providing services regulated and licensed by Utah Department of Commerce (including accountants, certain healthcare professions, cosmetologists, and engineers), must disclose if the consumer is interacting with generative AI in the provision of the services at the beginning of a consumer communication.
- Requested Disclosure: Other persons using, prompting, or otherwise causing generative AI to interact with a consumer (in connection with any act described in Utah Code Sec. 13-2-1, including sales practices in general), must disclose that the consumer is interacting with AI if asked by the consumer if they are interacting with AI or a human.
GenAI is No Defense to Violation
The Act specifically states that it is not a defense to the violation of any statute administered and enforced by the Utah Division of Consumer Protection that generative artificial AI made a violative statement, undertook the violative act, or was used in furtherance of the violation.
Sanctions
The Utah Division of Consumer Protection has the authority to levy fines up to $2,500 for each violation, while the Utah Attorney General can initiate legal proceedings to obtain both declaratory and injunctive relief, as well as to recover any funds acquired through violations of the AIPA.
Conclusion
Businesses operating across the U.S. need to navigate the patchwork state regulations when organizing their operational frameworks. Utah’s AI disclosure law likely indicates a nascent trend, suggesting that even companies not active in Utah might have to update their standard operating procedures to reduce legal risks associated with the rapidly changing legal environment surrounding AI.
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