In a precedent-setting move, the Texas Attorney General has become the first in the nation to settle with a company accused of deceptively marketing generative AI software in the healthcare sector. This action serves as a clear signal that state-level enforcement will play a critical role in the regulation of emerging technologies. Amy MacDonald, an associate at Manatt Phelps & Phillips, emphasizes, “Disclosing to patients whenever they are interacting with an AI system is always a good idea.”
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