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First US state AG settlement against a generative AI healthcare company, terms included corrective disclosures and conduct remediation
On 18 September 2024, the Texas Attorney General announced a first-of-its-kind settlement against Pieces Technologies, a generative AI company providing AI tools to hospital systems, for allegedly making deceptive and misleading statements about the accuracy and safety of its AI products. Pieces marketed its AI as capable of performing clinical tasks at high levels of accuracy that the AG alleged were not substantiated. Texas pursued the action under the Deceptive Trade Practices Act. The settlement is significant as the first US state attorney general enforcement action specifically targeting false capability claims by a generative AI company operating in a healthcare setting, and it preceded similar FTC actions by one week.
On 18 September 2024, the Texas Attorney General announced a first-of-its-kind settlement against Pieces Technologies, a generative AI company providing AI tools to hospital systems, for allegedly making deceptive and misleading statements about the accuracy and safety of its AI products. Pieces marketed its AI as capable of performing clinical tasks at high levels of accuracy that the AG alleged were not substantiated. Texas pursued the action under the Deceptive Trade Practices Act. The settlement is significant as the first US state attorney general enforcement action specifically targeting false capability claims by a generative AI company operating in a healthcare setting, and it preceded similar FTC actions by one week.
First US state AG settlement against a generative AI healthcare company, terms included corrective disclosures and conduct remediation
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