The proposed bill seeks to regulate the use of artificial intelligence (AI) and automated technologies in the healthcare insurance sector in Arkansas by introducing a new subchapter to the Arkansas Code. It defines key terms such as "artificial intelligence," "enrollee," and "healthcare insurer," and mandates that healthcare insurers disclose the strengths and limitations of AI-based algorithms, including known biases and performance variability, to stakeholders like the Insurance Commissioner and the general public. The bill also requires compliance with national interoperability standards and emphasizes that enrollee data used for AI training must adhere to privacy and security standards. Importantly, decisions regarding healthcare services cannot rely solely on AI outputs and must involve human oversight by qualified healthcare providers.

Additionally, the bill establishes a framework for auditing automated decision-making systems and mandates regular quality assurance testing of AI algorithms to ensure their safety and efficacy. Insurers are prohibited from independently altering coverage criteria using AI and must align AI algorithms with publicly accessible internal coverage criteria based on current evidence. The bill introduces new requirements for safety, robustness, adaptability, and fairness in AI solutions, with varying testing protocols based on risk levels. It outlines enforcement mechanisms for noncompliance, including civil penalties and empowers the Attorney General to take civil action against violations. The Insurance Commissioner is tasked with promulgating rules to enhance oversight and ensure compliance with quality standards in the use of AI tools in healthcare.