Utah Bill Would Add AI Regulations to its Consumer Protection Law

The Utah legislature has passed a bill that would hold companies liable for consumer protection/fair trade violations for misleading use of generative AI (the type of AI behind such tools as ChatGPT), just as they are liable for other unfair or deceptive trade practices against consumers. Companies that deploy the technology must “clearly and conspicuously” disclose its use to consumers, if asked. Regulated professions (such as medical care providers) must “prominently disclose" when a person is interacting with generative AI. If signed by the governor, the bill takes effect on May 1st of this year.

Why It Matters

Several states are trying to pass AI laws. Utah is one of the first to pass a general regulation of the use of AI. This law imposes fairly low hurdles – disclosure, but no requirement that the companies aim for ethical use of AI or take steps to minimize potential harm to humans – but is significant for being one of the first to tackle AI broadly. Companies with any nationwide presence such as a website should understand whether this law will require updated disclosures about use of generative AI in consumer interactions (such as via chat assistance features).  

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