Utah’s New AI Consumer Protection Laws: What You Need to Know
Utah has recently enacted significant legislation to safeguard consumers interacting with artificial intelligence (AI) technologies. These laws, effective May 1, 2024, introduce mandatory disclosures for businesses utilizing generative AI in consumer-facing applications.
Key Provisions of Utah’s AI Consumer Protection Laws
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Disclosure Requirements for Generative AI Interactions
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Requested Disclosure: Businesses employing generative AI to engage with consumers must inform individuals upon request that they are interacting with AI, not a human.
- Proactive Disclosure: Entities in regulated professions (e.g., healthcare, accounting) using generative AI to provide services must disclose this at the start of the interaction.
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Clarification on Synthetic Data
The legislation specifies that data generated by AI systems, which does not contain personal information, is not classified as personal data under the Utah Consumer Privacy Act (UCPA).
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Liability for AI-Generated Actions
Users of generative AI are held accountable for any impacts resulting from its use, including compliance with applicable laws and regulations.
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Establishment of the Office of Artificial Intelligence
The new laws create an Office of Artificial Intelligence to research AI technologies’ risks, benefits, and policy implications, fostering responsible AI development in Utah.
Implications for Businesses and Consumers
These regulations aim to enhance transparency and trust in AI applications, ensuring consumers are aware when interacting with AI systems. Businesses must assess their AI usage to comply with these requirements, avoiding potential fines of up to $2,500 per violation. Consumers can report deceptive AI interactions to the Utah Division of Consumer Protection.
As AI becomes increasingly integrated into daily life, Utah’s proactive approach sets a precedent for consumer protection in the digital age.
