Summary
Establishes a statewide framework regulating the use of artificial intelligence systems in Texas, including consumer‑protection and transparency duties, definitions, and enforcement via civil penalties. Amends portions of the Business & Commerce Code and other statutes to address obligations of developers, deployers, and processors handling personal data where AI is involved.
Healthcare Implications
Health insurers, providers, and digital‑health vendors using AI for triage, scheduling, utilization review, or patient engagement should expect requirements for disclosures, data‑handling safeguards, and documentation that supports explanations and appeals. Compliance teams should map AI use cases to statutory duties ahead of the effective date to reduce enforcement risk.
Operational Implications
- State agencies must disclose to consumers when interacting with AI.
- Healthcare providers must disclose to patients when AI is used in their service or treatment, on the date of treatment.
- Prohibits AI systems intentionally developed/deployed to discriminate against protected class (intent required; disparate impact alone insufficient).
- AI Advisory Council; 36-month regulatory sandbox; civil penalties $10K-$200K; AG enforcement; safe harbor for NIST AI RMF compliance; preempts local AI regulation.