In recent years, there has been a significant push for transparency regarding the use of artificial intelligence (AI) across various sectors in the United States. Utah and California are leading the charge with new laws mandating disclosures about AI usage.
Mandatory AI Labeling in Utah and California
Both states have implemented regulations requiring businesses to inform customers when they utilize AI. The rationale is simple: individuals deserve to know if they are interacting with human representatives or AI systems. Margaret Woolley Busse, the executive director of the Utah Department of Commerce, emphasized that this allows consumers to inquire about the nature of their interactions.
California’s Expanded AI Disclosure Laws
California has been proactive in establishing AI transparency laws since 2019. The recent updates in 2025 include stipulations that police departments must disclose their use of AI in compiling incident reports. Matthew Guariglia, a senior policy analyst at the Electronic Frontier Foundation, remarked that AI’s efficacy often relies on its obscurity. He believes transparency is essential for fostering accountability.
Local Regulations Driving Change
San Francisco serves as a notable example of local-level AI regulations. The city has mandated that all municipal departments publicly disclose how and when they employ AI technologies. This push for transparency is part of a broader movement that some government officials want to regulate tightly. David Sacks, White House AI Czar, has described the growing state-level regulations as potentially harmful to the startup ecosystem.
Balancing Transparency and Innovation
While some experts, like Daniel Castro from the Information Technology & Innovation Foundation, support AI transparency for its benefits to market integrity and democracy, there are concerns that excessive regulations could stifle innovation. He cited an example of an electrician who might hesitate to integrate AI into their customer interactions if disclosure requirements create hesitation among clients.
The Consumer Perspective
For many consumers, the rapid integration of AI into daily life raises legitimate concerns. Kara Quinn, a homeschool teacher from Bremerton, Washington, voiced her apprehensions about AI’s encroachment into personal communication. After her email provider began using AI to summarize her messages, she felt her autonomy in interpreting emails was compromised.
- Individuals should have the right to know if they are interacting with AI.
- Disclosures can foster a sense of control over technology usage.
- Consumer sentiment can affect the adoption of AI tools in various businesses.
Community Engagement on AI Issues
Kara’s concerns about the implications of AI have sparked dialogue within her community. Her sister-in-law, Ann-Elise Quinn, has initiated discussions, or “salons,” to explore how individuals can opt out or at least be consulted about AI’s role in their lives. This growing interest reflects a demand for greater agency in the face of advancing technology.
As more states consider similar regulations on AI disclosure, the conversation around transparency and consumer choice continues to evolve. The new laws in Utah and California could serve as a model for future legislation aimed at balancing innovation with the needs of individuals.
