State Spotlight: States Move to Regulate AI in Healthcare

With slow federal progress on AI regulations in healthcare, several states have taken proactive measures to protect residents. Colorado and California lead this evolving regulatory landscape, potentially shaping future national policies. 

Colorado’s SB 205, signed by Governor Jared Polis, addresses AI use in critical decisions, focusing on preventing algorithmic bias, especially concerning genetic information. Consumer Reports praised it as the nation’s “first comprehensive AI bias law.” This initiative underscores Colorado’s commitment to setting standards without federal guidelines. 

California is also advancing with numerous proposed measures aimed at regulating AI technologies. Building on its 2020 data privacy laws, the state introduced around 30 bills focusing on AI regulation. Rebecca Bauer-Kahan, chair of the California State Assembly’s Privacy and Consumer Protection Committee, emphasized the state’s proactive stance due to federal inaction. Over 400 AI-related bills have been proposed across the United States this year. Matt Perault from the University of North Carolina noted lawmakers’ widespread interest in establishing robust AI safeguards. 

The federal government’s slow pace has prompted states to act independently. While draft legislation exists at the federal level, concrete measures have yet to materialize. The Biden administration’s executive order mandating federal agencies to develop AI standards is a step forward but lacks comprehensive oversight. Experts caution that federal AI legislation may remain elusive in the near term, leaving states like Colorado and California to set precedent-setting rules. 

As states develop their AI regulations, healthcare and other sectors will see evolving standards. The divergent approaches highlight the complexity and urgency of establishing a cohesive national framework for AI governance.

Source: National Association of Benefits and Insurance Professionals