Utah Shows How States Should Regulate AI in Healthcare

By Hodan Omaar
Center for Data Innovation
Published March 20, 2026

As hospitals, clinics and public health agencies increasingly use artificial intelligence to support healthcare, policymakers face the challenge of encouraging innovation while protecting patient safety.

In this article, Hodan Omaar of the Center for Data Innovation highlights Utah’s approach to regulating AI through supervised experimentation rather than broad restrictions. She points to Utah’s 2024 Artificial Intelligence Policy Act, which created the Office of Artificial Intelligence Policy and authorized a regulatory sandbox where companies can test AI systems under government supervision.

The article examines a pilot involving Doctronic, a health technology company using AI to support routine prescription renewals for certain low-risk medications. Under a state-approved regulatory mitigation agreement, eligible patients can initiate an AI-guided screening at participating pharmacies, with the system checking relevant information and authorizing qualifying refills for pharmacists.

Omaar argues that Utah’s sandbox model provides regulators with an opportunity to evaluate AI tools in real-world conditions before creating permanent regulations. The approach can help policymakers identify potential risks, measure outcomes and determine where safeguards are needed while allowing promising technologies to reach patients.

The article also highlights how the sandbox addresses questions of accountability and liability by establishing responsibilities among technology companies, healthcare professionals and regulators. Companies participating in the pilot must also carry malpractice insurance covering the AI’s clinical outputs.

The author concludes that supervised experimentation can give states a way to develop AI regulations based on evidence and real-world experience while supporting innovation in healthcare.

Read the full article at the Center for Data Innovation:
Utah Shows How States Should Regulate AI in Healthcare

Originally published by the Center for Data Innovation on March 20, 2026. Written by Hodan Omaar, a former senior policy manager at the Center for Data Innovation focusing on AI policy.