Office of Artificial Intelligence Policy signs first regulatory mitigation agreement

The Utah Office of Artificial Intelligence Policy (OAIP) has signed its first regulatory mitigation agreement with ElizaChat, a company developing an app that schools can offer to teenage students to enable them to improve their mental wellness.

A regulatory mitigation agreement is a contractual arrangement between a company, Utah’s OAIP and possibly relevant state regulators that outlines how they can use AI in Utah. Such agreements may provide limited exemptions from existing laws, offer reduced fines for regulatory violations or implement other strategies to foster responsible AI development while still ensuring safety. OAIP establishes these agreements case-by-case, reflecting a collaborative approach to balancing innovation and regulatory compliance, the department said.

“This agreement underscores ElizaChat’s commitment to adhering to industry best practices, such as data privacy, promoting positive mental health practices and incorporating adult supervision in sensitive situations,” a department release said.

“This agreement marks a significant step forward in our commitment to fostering innovation while ensuring the safety and well-being of consumers in the AI landscape,” said Utah Department of Commerce Executive Director Margaret Busse. “By establishing regulatory guardrails and providing certainty, we are advancing technology while ensuring AI products are responsibly developed and deployed — which is particularly crucial in health care and mental health industries.”

The new agreement requires ElizaChat to implement a robust internal safety protocol for escalating severe cases to trusted adults. It grants a 30-day period to rectify instances where the app may inadvertently engage in conversations that fall under the “practice of mental health therapy,” which requires state licensure, according to the releaae.

“This is an example of how regulatory mitigation can empower innovative companies. Through our collaborative discussions with ElizaChat, we connected them with regulators to create a framework that safeguards consumers while allowing their service to flourish,” said Zach Boyd, director of the OAIP.

The agreement with ElizaChat is the first regulation mitigation agreement that OAIP has facilitated since the office was established in 2024 through SB149, sponsored by Sen. Kirk Cullimore and Rep. Jefferson Moss.