Utah Sets Boundaries on Generative AI - MBI Worldwide Background Checks and Drug Screening

As AI systems and technology use continue to soar, more regulations and guidelines follow. Utah’s SB 149, also known as the AI Policy Act, mandates disclosure to any person who is interacting with generative AI. The Act is effective as of May 1, 2024, and has been implemented to promote transparency and fairness in AI-driven communications.

Below is a quick timeline of events leading up to SB 149:

• Early 2023: Initial discussions and drafting of the AI Policy Act.
• March 2024: SB 149 passed in the Utah Legislature.
• May 1, 2024: SB 149 went into effect.

Utah is one of the first states, alongside Colorado, to enact a law governing the use of AI.

What is “Generative AI”?

Utah’s AI Policy Act defines generative AI as any artificial system that:

• is trained on data;
• interacts with a person using text, audio, or visual communications; and
• generates non-scripted outputs with intentional likeness to human interaction, with limited or no actual human oversight.

This broad definition encompasses various applications, from marketing bots to customer service responses.

Guidelines for Employers

In addition to the general terms and usage of AI, employers should be aware of guidelines, enforcement, and penalties regarding Utah’s AI Policy Act.

Disclosures

• General Disclosure: Companies must “clearly and conspicuously” disclose the use of generative AI, if it is used to interact with a person and if that person asks.
• Regulated Professionals Disclosure: Any person who provides the services of a regulated professional, meaning any occupation requiring a license or state certification, must prominently disclose the use of generative AI at the start of the interaction.

Disclosures must be prominent and clear and cannot be solely included in terms of use or privacy notices.

Enforcement and Penalties

• The Division of Consumer Protection may impose fines of up to $2,500 per violation and seek additional remedies such as injunctions and disgorgement (seizure of illegally obtained profits).
• The Attorney General’s office can seek civil penalties for up to $5,000 for each prior administrative or court order violation.

To read the full details of policies, regulated professions, and guidelines for employers, take a closer look here.

The Office of Artificial Intelligence Policy

Utah law also establishes a state Office of Artificial Intelligence Policy (OAIP) under the Act, which will oversee a learning laboratory to assess risks and best practices related to AI. The OAIP will also have rule-making authority over AI issues, consult with businesses and stakeholders about proposed regulations, draft rules for participation in the learning lab program, and define criteria for organizations to follow when seeking mitigation of regulatory requirements or violations.

Importance for Human Resource Professionals Nationwide

New laws and regulations regarding the use of AI, such as Utah’s SB 149 and Colorado’s SB 24-205, can potentially set a precedent for future legislation in other states addressing responsible AI use on a larger scale.

These laws highlight the need for transparency, fairness, and accountability in AI systems, particularly those used in direct human interactions and concerning use in regulated professions. As states like California, Connecticut, and Virginia propose similar laws in 2024 to combat the misuse of AI, the urgency for clear disclosure requirements appears to be a growing trend. Employers in Utah should consult with their legal counsel to review laws regarding the use of AI in business and employment practices.

MBI Worldwide will attempt to provide updates on AI regulations in Utah and across the United States as they emerge.