place requirements on the use of artificial intelligence systems by health carriers in making determinations about the provision of health care services.

SB 169 requires South Dakota health insurers to follow specific rules when using artificial intelligence (AI) systems to make coverage decisions for health care services. The bill mandates that AI tools must base decisions on individual patient medical history, clinical circumstances, and relevant clinical data - not just group data - and must apply equally to all patients with similar needs. It also prohibits AI from denying or delaying coverage; only licensed doctors or healthcare professionals can make such final decisions after reviewing patient-specific details. Insurers must submit annual reports detailing AI usage and human oversight, and the state insurance division can inspect systems for compliance. This directly affects health insurers and their AI systems used in coverage determinations.