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 emphasizes that decisions regarding healthcare services cannot rely solely on AI outputs and must involve human oversight, while also establishing a framework for auditing automated decision-making systems to prevent increased claims denials or reduced access to care.

Additionally, the bill sets forth new requirements for healthcare insurers to ensure the safety, robustness, and fairness of AI solutions, with tailored testing protocols based on risk levels. Insurers must generate real-world evidence to validate the performance of AI algorithms and ensure that quality assurance testing datasets reflect Arkansas's demographic makeup. Enforcement mechanisms for noncompliance include civil penalties and potential suspension of enrollment in health benefit plans, while the Attorney General is authorized to take civil action for violations. The bill also encourages collaboration with academic institutions for ethical AI training and mandates the Insurance Commissioner to establish oversight rules for compliance with quality standards in AI usage.