Introduction
Utah has positioned itself as a leader in the regulation of artificial intelligence (AI), particularly with respect to generative AI (GenAI) applications. The state has enacted several laws aimed at governing the use of AI, especially in sensitive areas such as mental health services, setting a benchmark for other states.
Description
Utah has emerged as a frontrunner in regulating artificial intelligence (AI), particularly with the enactment of laws in 2024 that address specific applications of generative AI (GenAI) [2]. A significant development occurred on March 25, 2025, with the passage of HB 452, which establishes regulations for the use of AI mental health chatbots within the state [3]. This law defines a “Utah user” as anyone accessing a mental health chatbot while in Utah [3], and mandates that businesses utilizing GenAI tools, especially in mental health services, adhere to strict guidelines. Notably, HB 452 requires AI-driven mental health chatbots to inform users at the beginning of the interaction and after a seven-day period of inactivity that they are engaging with an AI rather than a human therapist.
The legislation [1] [2] [3], which received overwhelming bipartisan support [1], also prohibits advertising during user interactions and restricts the sale or sharing of identifiable health information without user consent [1] [3], except for healthcare providers or health plans [1]. Compliance with the Health Insurance Portability and Accountability Act (HIPAA) is essential for any information sharing [1], and the Utah Division of Consumer Protection is tasked with enforcing these regulations, imposing penalties of up to $2,500 for violations [1]. These measures aim to enhance governance and ethical standards in the use of AI for mental health applications [3], setting a precedent for other states contemplating similar regulations [3].
Amendments to the Utah AI Policy Act have broadened the state’s “unauthorized impersonation” law to encompass AI-generated impersonations and ban the distribution of tools designed for unauthorized impersonation [2]. Two significant bills [2], SB 226 and SB 332 [2], modify the transparency obligations for businesses using GenAI [2]. SB 226 [2], effective May 7, 2025 [4], narrows disclosure requirements to situations where consumers explicitly inquire about the use of AI [2], mandating that disclosures be made verbally or in writing at the start of high-risk interactions [2]. This requirement applies to licensed professions regulated by the Utah Department of Commerce [2], and a statutory safe harbor provision is available for entities that provide clear disclosures [2], with the repeal period extended to July 1, 2027 [2].
Furthermore, SB 271 expands the existing “abuse of personal identity” law to prohibit unauthorized commercial use of simulated personal identities [2], including those created by GenAI [2]. The law defines “unauthorized commercial use” and includes exceptions for fair use in news reporting [2], artistic works [2], and other transformative creations [2]. It also prohibits the distribution of technology intended for unauthorized commercial creation or modification of content using personal identities [2]. Providers of AI platforms can defend against claims of offering unlicensed mental health services by documenting their technology [1], training data [1], HIPAA compliance [1], and maintaining a written policy that outlines the chatbot’s purpose [1], capabilities [1], and limitations [1]. The implications of these laws may influence future policies regarding AI in healthcare across the nation [3].
Conclusion
Utah’s legislative actions in regulating AI, particularly in the realm of mental health services, underscore the state’s commitment to ethical governance and consumer protection. By setting stringent guidelines and expanding existing laws to cover AI-generated content, Utah is not only safeguarding its residents but also paving the way for other states to follow suit. These measures are likely to have significant implications for the future of AI regulation in healthcare and beyond, potentially serving as a model for national policy development.
References
[1] https://www.transparencycoalition.ai/news/utahs-new-ai-mental-health-chatbots-law-signed-by-governor
[2] https://www.jdsupra.com/legalnews/utah-enacts-multiple-laws-amending-and-7476315/
[3] https://nquiringminds.com/ai-legal-news/utah-enacts-hb-452-regulating-ai-mental-health-chatbots/
[4] https://www.insidearm.com/news/00093251-utah-enacts-law-requiring-generative-arti/
