The AI Policy Act Is Signed Into Law: What You Need to Know Before May 1

Late on Friday, March 15 the Utah governor signed the Artificial Intelligence Policy Act into law – with an effective date of May 1, 2024.

With AI becoming a regular headlines feature, legislatures across the country are working to regulate this evolving space. Utah is the first to cross the finish line with it’s AI Policy Act. While the AI Policy Act is narrow in scope, there are a few key takeaways to keep in mind here:

What is Generative AI? The focus of the AI Policy act is to govern generative AI. It defines it to be “an artificial system that (i) is trained on data, (ii) interacts with a person using text, audio, or visual communication, and (iii) generates non-scripted outputs similar to outputs created by a human, with limited or no human oversight.”

Worth noting here is its call out for outputs that are created with “limited or no human oversight” – furthering the ongoing discussion on how best to draw the line of what constitutes enough “human intervention.”

Responsibility for Use of AI. The AI Policy Act reminds companies that it remains liable under Utah’s consumer protection statutes for its use of AI – reiterating that it is not a valid defense to say hey the AI tool made the statement or created the product that violated the consumer protection law.

Office of AI Policy and AI Learning Laboratory Program. The AI Policy Act creates a space for further AI legislation in Utah while still promoting the use of this emerging technology. Specifically, participants of the AI Learning Lab Program will be able to develop generative AI tools while mitigating potential regulatory enforcement.

 Mandatory Disclosures. With the increase in the use of generative AI comes the discussion of do we need to disclose we made this with AI? The AI Policy Act contributes to this discussion in two small, but notable ways. Saying that a disclosure is needed if:

·       The consumer outright asks a business whether it is using a generative AI.

·       Generative AI is being used to provide a service of a regulated occupation, where such use is permitted.

So What Does This Mean For My Business? Utah’s AI Policy Act sets the stage for the future of AI legislation and confirms that the requirements for responsible use are not going anywhere. As your business considers use of AI tools – whether developing them internally or engaging a service provider that leverages AI – it is critical to make sure proper contractual protections are in place, risk analyses are completed, employees are trained on its proper use, and there is a level of human involvement and review in place for its outputs.

You can read more about InfoLawGroup’s work in the AI space here.

Originally published by InfoLawGroup LLP. If you would like to receive regular emails from us, in which we share updates and our take on current legal news, please subscribe to InfoLawGroup’s Insights HERE.