Estimated read time: 2-3 minutes
- Utah strengthens AI consumer protection laws, addressing AI chatbot limitations in transactions.
- New rules require AI chatbots to disclose their identity when giving advice.
- Violations of these rules can result in fines up to $2,500 per incident.
SALT LAKE CITY — Utah, like many states, is trying to navigate the explosion of artificial intelligence into daily lives. As part of that, consumers have new protections for when they encounter AI – new rules that spell out what AI chatbots can do and what they can't do in consumer transactions.
Promised payout glitch
Last year, I told you about Robert Brown and his experience with artificial intelligence after his air conditioning unit went kaput. He reached out to his home warranty company asking if he could get a payout. The company messaged back a positive response, writing, "We will proceed with the payout option of $3,000 as per your request."
But when the promised payout didn't show up, Brown called the company to find out why. The answer he got surprised him.
"He said, 'We've had this AI up for about a week and it's really confusing and it's miscommunicating to a lot of people,'" Brown recalled about his conversation with a live company rep.
Yeah, it turns out that the person who promised that $3,000 payout to Brown wasn't a person at all. It was a chatbot programmed to represent the company. Apparently, that artificial intelligence programming was on the fritz.
"I said, well, how is that my fault?" Brown said.
In this case, ultimately, I was able to help him. The home warranty company cut him a check after I reached out. But there are other resources available to Utahns.
Lawmakers strengthen AI protections
During this past legislative session on Utah's Capitol Hill, lawmakers bolstered the state's artificial intelligence consumer protection laws, which are enforced by the state's Division of Consumer Protection.
"'The chatbot did it,' is not going to be an excuse when it comes to deceptive acts and practices in the State of Utah," the division's director, Katie Hass told us.
The new legislation includes new disclosure rules. If an AI chatbot doles out legal, financial or medical advice, the application must tell you that you're talking to a machine up front. The chatbot will also have to tell you if you ask.
"If they (consumers) feel like they've been deceived in any way by the chatbot – maybe because the bot promised something that the company is not willing to honor now — they are welcome to file a report with the Utah Division of Consumer Protection," Hass explained.
Consumers can file complaints with the Consumer Protection Division at db.dcp.utah.gov/complaints.html.
If a company or its chatbot violates the rules, it faces a potential fine of up to $2,500 for each violation.
