Guidance on AI Usage Disclosure for Companies

This guide discusses the considerations companies should take into account regarding the disclosure of artificial intelligence (AI) usage to consumers. It outlines the implications of the Utah Artificial Intelligence Policy Act, which mandates specific disclosure requirements when companies use AI to interact with individuals. The guide emphasizes the importance of transparency in AI practices to build consumer trust and minimize legal risks. It also highlights the Federal Trade Commission's (FTC) perspective on ensuring that consumers are not misled about AI interactions and the treatment of their personal data. Furthermore, the document addresses recent class action activities related to AI tools and the California Invasion of Privacy Act, illustrating the legal landscape surrounding AI disclosures. Best practices for AI disclosures are presented, suggesting that companies should tailor their disclosure statements to accurately reflect their operations and avoid generic templates. This approach is crucial for mitigating risks associated with enforcement actions or litigation.