Automate Utah AI Policy Act Compliance

High-Level Summary

The Utah AI policy acts as a wake-up call for businesses to seriously consider the ethical and legal ramifications of their AI technologies.

While the first of its kind, Utah’s move may signal a wider adoption of similar laws across other states or even federally.

The core concepts of the Utah AI Policy Act are:

• Companies will be held accountable for what their chatbots say: The brewing trend shows we are moving toward holding companies accountable for what their chatbots say.
• There will be an “AI Learning Laboratory Program”: The OAIP (Office of Artificial Intelligence Policy) will administer an AI Learning Laboratory Program designed to foster innovation in AI while ensuring responsible usage.
• There are options for regulatory mitigation: Businesses participating in the AI Learning Laboratory Program can apply for regulatory mitigation, which includes potential relief from standard compliance requirements. This might involve reduced fines, specific terms for correcting regulatory issues (cure periods), and other tailored conditions that facilitate the testing and development of AI technologies while managing associated risks.
• Mandatory disclosures are in effect: The Act requires clear disclosures to consumers when they are interacting with generative AI technologies. This aims to ensure transparency and prevent confusion about whether interactions are with humans or AI systems. Businesses must also establish protocols to respond to inquiries about AI interaction.
• The policy recognizes synthetic data as non-personal: The policy formally implies that the use of synthetic data does not trigger traditional privacy laws. This recognition provides businesses with more flexibility in using synthetic data to achieve their objectives without infringing on privacy regulations.

As AI continues to integrate into various aspects of life and business, the need for comprehensive frameworks to manage its use, deployment, and implications becomes increasingly critical.

That’s where we come in! FairNow plays a crucial role in preparing companies for this future, ensuring they’re not only compliant today but are also ready for the regulatory landscapes of tomorrow.

Scope

The requirements of the Act apply to people and companies who use, prompt or otherwise cause a person to interact with generative AI in the state of Utah.

The Act defines “generative artificial intelligence” as an artificial system that is trained on data; interacts with people over text, audio or visual means; and generates outputs similar to outputs created by humans – but with little or no human oversight.

The Act sets transparency requirements that cover “regulated occupations.” A regulated occupation is any occupation regulated by the Utah Department of Commerce that requires a license to operate. As of 2023, this list included jobs such as social workers, psychologists, and mental health counselors.

Compliance Requirements of the Utah AI Act

Those using generative AI in the state of Utah are affected by two things:

Transparency requirements:Any person or company who uses or deploys generative AI to an end user must clarify that the end user is interacting with generative AI in two scenarios: if they are asked by the end user, or the generative AI is used in the provision of regulated services.

Liability established: Any person or company who commits a legal offense using generative AI or deploys generative AI that commits an offense is liable for the offense.

Non-Compliance Penalties

Each violation of the transparency requirements brings an administrative fine of up to $2,500 and the threat of court action to enforce the requirements. Those who use generative AI to commit or aid in legal offenses will be subject to the penalties for that offense.