Technology (Artificial Intelligence)

SB 169 requires South Dakota health insurers to follow specific rules when using artificial intelligence (AI) systems to make coverage decisions for health care services. The bill mandates that AI tools must base decisions on individual patient medical history, clinical circumstances, and relevant clinical data - not just group data - and must apply equally to all patients with similar needs. It also prohibits AI from denying or delaying coverage; only licensed doctors or healthcare professionals can make such final decisions after reviewing patient-specific details. Insurers must submit annual reports detailing AI usage and human oversight, and the state insurance division can inspect systems for compliance. This directly affects health insurers and their AI systems used in coverage determinations.

SB 170 requires businesses to provide a clear, upfront notice when consumers interact with chatbots, AI agents, or other technologies designed to mimic human conversation, preventing deception. It directly affects businesses using such technology in commercial transactions, mandating disclosure before interaction begins. Violations could result in actual damages, $1,000 per violation, or class-action limits of $10 million, with the attorney general able to seek enforcement. The law aims to ensure transparency in digital consumer interactions without restricting legitimate business use.