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.

HB 1144 would restrict how artificial intelligence (AI) can be used in therapy and psychotherapy services in South Dakota. Licensed therapists (including psychologists, social workers, counselors, and marriage and family therapists) would be prohibited from using AI to make treatment decisions, interact directly with clients during sessions, generate treatment plans without review, or detect emotions - except for specific administrative tasks like scheduling, billing, or anonymized data analysis. The bill requires written client consent for AI recording of sessions, with strict rules against obtaining consent through vague agreements or deceptive tactics. Violations could result in civil penalties of up to $10,000 per incident, with therapists retaining full responsibility for all AI-assisted interactions.

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.

SB 168 regulates chatbots used by minors in South Dakota. It prohibits deployers (companies or developers) from making AI-companion chatbots - designed to form emotional bonds - available to minors without age verification (e.g., checking ID). Instead, deployers must implement age verification for such chatbots or remove all human-like features to allow minor access. Therapy chatbots may be offered to minors only with clear disclaimers, clinical evidence of safety/efficacy, and oversight by a licensed mental health professional who assesses suitability and monitors use. The bill also requires emergency response systems for crisis situations and limits data collection to necessary purposes.