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Utah’s latest passage of updates to its shopper safety legislation and the Synthetic Intelligence Coverage Act (Utah AI Coverage Act), which comes into impact on Might 1, 2024, might mark an necessary second in AI regulation. Notably, the updates to state shopper safety legislation emphasize holding firms that use generative AI (GenAI)—moderately than builders—accountable in the event that they knowingly or deliberately use generative AI in reference to a misleading act or observe. In different phrases, an organization could not have a protection that: “The AI generated the output that was misleading, so we’re not accountable.” For a violation, a courtroom could concern an injunction for violations, order disgorgement of cash obtained in violation of the part, in addition to impose a wonderful of as much as $2,500, together with every other aid that the courtroom deems affordable and obligatory.
Legal guidelines that maintain generative AI customers, moderately than builders, liable for the accuracy of AI outputs are certain to extend dialogue on AI governance groups about staff’ correct use of generative AI and the continuing high quality of AI outputs to cut back the danger from inaccurate or misleading outputs.
There are different noteworthy points of the latest updates to Utah legislation.
Person Discover Necessities Upon Request: The up to date shopper safety legislation requires an organization making a GenAI characteristic obtainable to customers to make a transparent and conspicuous disclosure to a consumer upon request that explains the particular person is interacting with GenAI and never a human.
Disclosure Necessities for Regulated Occupations: When an organization is performing regulated occupations (i.e., those who require a state license or certification), the up to date state legislation requires that the corporate prominently disclose when the corporate is utilizing GenAI as a part of that service. The disclosure is to be supplied “verbally initially of an oral change or dialog; and thru digital messaging earlier than a written change.”
Extra Provisions: The Utah AI Coverage Act establishes the Workplace of Synthetic Intelligence Coverage to probably regulate AI and foster accountable AI innovation. It additionally creates the Synthetic Intelligence Studying Laboratory Program geared toward analyzing AI’s dangers and advantages to tell regulatory exercise and encourage growth of AI know-how in Utah. Moreover, the legislation permits firms to use for momentary waivers of sure regulatory necessities throughout AI pilot testing to facilitate innovation whereas making certain regulatory oversight.
Utah’s updates to its shopper safety legal guidelines spotlight among the points firms could face as they undertake GenAI. To cut back danger, firms will wish to guarantee their AI governance program consists of ongoing monitoring of worker use of GenAI and the standard of the outputs from GenAI. Whereas it might not be stunning that firms are liable for how they use GenAI outputs, the fixed innovation in AI know-how and the issue in making certain GenAI outputs are applicable will likely be a compliance problem.
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