Introduction
Utah has taken a pioneering role in the regulation of artificial intelligence (AI) with the implementation of the Artificial Intelligence Policy Act (UAIPA). This legislation [1], effective May 1, 2024 [5], sets forth requirements for the disclosure of AI use in regulated activities, particularly those involving generative AI (GenAI). The act aims to ensure transparency and protect consumer interests, especially in professions regulated by the Utah Division of Consumer Protection and the Department of Commerce.
Description
Utah has established itself as a frontrunner in AI regulation with the enactment of the Artificial Intelligence Policy Act (UAIPA) [2] [3], effective May 1, 2024 [5]. This legislation mandates that organizations and individuals utilizing generative AI (GenAI) in regulated activities inform consumers of their engagement with AI, particularly in professions overseen by the Utah Division of Consumer Protection and the Department of Commerce. Disclosures must occur verbally at the start of conversations and in writing before any written interactions [2], especially when sensitive personal information is involved [2]. Companies are also required to provide clear and conspicuous disclosures regarding the use of GenAI when requested by the interacting individual [1]. This development addresses the challenges faced by licensed professionals, including attorneys, who utilize AI systems in their work [4], particularly in light of sanctions for improper usage.
In 2025 [1] [2] [3], three additional laws—HB 452 [2] [3], SB 226 [1] [2] [3], and SB 332—were passed to amend and expand the UAIPA [2]. HB 452 introduces specific requirements for mental health chatbots [2], including obligations to disclose their AI nature before user interactions and after a week of use [2]. It prohibits the sale or sharing of individually identifiable health information (IIHI) without user consent or necessary sharing under HIPAA [2]. Advertising through these chatbots is restricted unless clearly identified [2], and user input cannot be used for targeted advertising [2]. Suppliers must maintain compliant policies to defend against violations [2], which can incur fines up to $2,500 per incident [2].
SB 226 revises the UAIPA’s disclosure requirements [2], limiting them to high-risk AI interactions involving health, financial [1], and biometric data [1], as well as personalized advice in sensitive areas such as finance [1], law [1] [3] [5], and healthcare [1] [2] [3]. Consistent disclosure throughout interactions can exempt individuals from enforcement actions for violations [2]. The Division of Consumer Protection is empowered to establish rules regarding the form and methods of these disclosures [1], and violations can result in administrative fines of up to $2,500 [1], with civil penalties of up to $5,000 for breaches of court or administrative orders [1].
SB 332 extends the repeal date of the UAIPA from May 1, 2025 [2], to July 1, 2027 [2], ensuring continued regulatory oversight during this period [2]. As AI technology becomes more prevalent in professional settings [4], it is anticipated that other states may adopt similar regulations to ensure safe and responsible use of AI [4], indicating a trend toward increased regulation of AI technologies at the state level [1], potentially ahead of federal legislation [1].
Conclusion
The enactment and subsequent amendments of the UAIPA underscore Utah’s commitment to leading the charge in AI regulation. By mandating transparency and setting clear guidelines for AI use, Utah not only protects consumer interests but also sets a precedent for other states. As AI continues to integrate into various professional sectors, the state’s proactive approach may serve as a model for future legislation, potentially influencing broader regulatory trends across the United States.
References
[1] https://natlawreview.com/article/understanding-utah-ai-act-and-newly-effective-amendments-what-your-business-needs
[2] https://natlawreview.com/article/utah-enacts-ai-amendments-targeted-mental-health-chatbots-and-generative-ai
[3] https://www.jdsupra.com/legalnews/utah-enacts-ai-amendments-targeted-at-7512117/
[4] https://news.bloomberglaw.com/bloomberg-law-analysis/analysis-utahs-regulation-of-lawyers-ai-use-what-to-know
[5] https://www.schellman.com/blog/ai-services/global-snapshot-of-ai-laws-and-iso-42001
