Arizona advances bill to keep AI from rejecting medical claims

Arizona state lawmakers advanced a bill Thursday that would ban the use of artificial intelligence (AI) to deny medical claims.

The Arizona House of Representatives passed the legislation 58-0, with two lawmakers sitting out the vote, and it now heads to the state senate for consideration.

The bill, which was sponsored by state Rep. Julie Willoughby (R), requires a health care provider to review a claim or prior authorization before it can be denied.

"With the advancement of AI algorithms into just about every part of our lives now, we want to make sure that this doesn't hinder any health care or have any overburdensome access to care for any patients,” Willoughby said at a committee hearing earlier this month.

“What we're asking for in this is that any claims that are denied have a provider look them over for completeness, to ensure that there isn't anything that the AI algorithm may not have accounted for,” she added.

The Arizona bill mirrors legislation that passed the California Legislature last year and was signed into law by California Gov. Gavin Newsom (D) in September.

The Physicians Make Decisions Act, which went into effect last month, requires a health care provider to review any denial, delay or change to care based on medical necessity.

“Artificial intelligence is an important and increasingly utilized tool in diagnosing and treating patients, but it should not be the final say on what kind of healthcare a patient receives,” California state Sen. Josh Becker (D), who introduced the bill, said in a statement in December.

States have passed numerous AI laws in recent years, as most AI legislation at the federal level has stalled. According to the Business Software Alliance, 113 AI-related bills were enacted into law at the state level in 2024.

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Arizona moves to ban AI use in reviewing medical claims

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