Introduction
The Utah Artificial Intelligence Policy Act (UAIP) [1] [2] [3], officially known as UT SB 149, represents a significant legislative effort to regulate the use of generative AI (GenAI) within the state. Enacted in March 2024 [3], the Act aims to safeguard consumers, particularly in high-risk areas such as health, finance [4] [5], and law, by establishing comprehensive guidelines for the use of AI technologies.
Description
The Utah Artificial Intelligence Policy Act (UAIP) [1] [2] [3], officially designated as UT SB 149, defines generative AI (GenAI) as systems trained on data that generate human-like outputs during interactions with individuals in Utah [3]. Enacted in March 2024 [3], the UAIP establishes comprehensive regulations aimed at protecting consumers, particularly in high-risk scenarios involving health, financial [1] [3] [4] [5], and biometric data [3] [4] [5], as well as personalized advice in sensitive areas such as finance [5], law [1] [4] [5], and healthcare [1] [4] [5].
Under the UAIP, companies providing services in regulated occupations [5], including healthcare [1], legal [1], and financial services [1], are required to disclose when consumers are engaging with GenAI [4]. This disclosure must occur at the beginning of the interaction and continue throughout [3] [5], communicated either orally or in writing [3] [5], depending on the mode of communication [3] [5]. For non-regulated occupations [3] [4] [5], companies must inform consumers that they are interacting with a GenAI system if requested [3] [4] [5]. Additionally, companies providing mental health chatbots must disclose interactions and advertisements associated with these chatbots and are prohibited from selling or sharing user inputs and health information [1].
The amendments to the UAIP, effective May 7, 2025, introduce stricter requirements for disclosures in high-risk interactions and emphasize consumer protection, particularly concerning mental health applications and regulations against unauthorized impersonations [3], such as deep fakes [3]. To benefit from the Safe Harbor provision [4] [5], companies must consistently disclose the use of GenAI throughout the interaction [5]. Users are entitled to receive disclosures of all interactions upon request.
The Division of Consumer Protection is empowered to establish rules regarding the form and methods of these disclosures [3] [4] [5]. Violations of the UAIP can result in administrative fines of up to $2,500 per violation per day [3] [4] [5], while civil penalties for breaches of court or administrative orders can reach $5,000 [3] [4] [5]. Additional consequences for violations include injunctive relief [5], disgorgement of profits [3] [4] [5], and the payment of attorney fees and costs incurred by the Division [5].
Utah is among several states leading the way in enacting laws related to AI [4] [5], reflecting a trend toward increased state-level regulation of AI technology in anticipation of potential federal legislation [5].
Conclusion
The UAIP underscores Utah’s proactive stance in addressing the challenges posed by AI technologies. By implementing stringent disclosure requirements and penalties for non-compliance, the Act seeks to enhance consumer protection and ensure transparency in AI interactions. This legislative framework not only positions Utah as a leader in AI regulation but also sets a precedent for other states considering similar measures. As AI continues to evolve, such regulations will play a crucial role in balancing innovation with consumer rights and safety.
References
[1] https://xenoss.io/blog/ai-regulations-usa
[2] https://www.multistate.ai/updates/vol-61
[3] https://www.lexology.com/library/detail.aspx?g=601e9694-5cc6-438e-93b8-ee7b268303b6
[4] https://natlawreview.com/article/understanding-utah-ai-act-and-newly-effective-amendments-what-your-business-needs
[5] https://www.jdsupra.com/legalnews/understanding-the-utah-ai-act-and-newly-3939591/
