What happened?

On March 25, 2025, Utah Governor Spencer Cox signed SB 332, extending the repeal date of Senate Bill 226 from May 7, 2025, to the new effective date of July 1, 2027. SB 226, signed on March 27, 2025, relates to the use of generative artificial intelligence (Gen AI) in consumer transactions and regulated services.

Overview:

• Covered Entities: A supplier that uses GenAI to interact with an individual in connection with a consumer transaction.

• Disclosure Requirements: Businesses must disclose the use of generative AI (Gen AI) only if a consumer directly asks. The request must be clear and unambiguous.

• High-Risk AI Interactions: Entities in regulated occupations must provide prominent disclosures during high-risk AI interactions, which involve sensitive personal information or personalized advice that could influence significant personal decisions.

• Safe Harbor Provision: Establishes a safe harbor for entities that make clear and conspicuous disclosures about Gen AI at the start and throughout interactions.

• Extended Repeal Period: SB 332 extends the AI Policy Act’s repeal period to July 1, 2027.

• Enforcement: The Division of Consumer Protection can impose fines of $2,500 per violation and seek legal actions for enforcement.

• Other Considerations: The amendments do not affect the Office of Artificial Intelligence Policy or the AI Learning Laboratory Program. The Office can grant temporary mitigations to entities developing AI systems that meet eligibility requirements.

For additional details, please consult SB 226

Source References

• Utah SB 226 – Artificial Intelligence Consumer Protection Amendments
• Utah SB 332 – Artificial Intelligence Revisions

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