The Office of the Attorney General of Texas (“OAG”) announced a “first-of-its-kind healthcare generative AI” settlement with Pieces Technology, Inc. (“Pieces”). The settlement related to the Texas OAG allegations that Piece’s advertising and marketing claims about the accuracy of its generative artificial intelligence (GenAI) products in violation of the Texas Deceptive Trade Practices – Consumer Protection Act (“DTPA”), Tex. Bus. & Com. Code Ann. § 17.58. The Texas OAG states in its press release that the Piece’s investigation is a “First-of-its-Kind Healthcare Generative AI Investigation.”
Pieces’ AI products are offered to hospitals and other in-patient healthcare facilities to, among other things, assist providers with “summariz[ing], chart[ing], and draft[ing] clinical notes . . . in the Electronic Health Record[(“EHR”)] [system].”
The OAG alleged that Pieces advertised and marketed the accuracy of its AI technology with metrics of a “critical hallucination rate” and a “severe hallucination rate” of less than 0.001%. For GenAI, a “hallucination” is a confidently stated but erroneous or false content. Misrepresenting the rate at which a GenAI system produces hallucination is critical because it directly impacts the reliability and safety of GenAI outputs that relate to diagnoses, treatments and other decisions regarding patient care, as well as the associated health recordkeeping.
Although the DTPA allows for civil penalties of up to $10,000 per violation,...
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