Bhojani AI Bill’s Definition Can Sweep In Ordinary Business Software

The text as introduced · 352 words

89R16705 BCH-D

By: Bhojani
H.B. No. 5496

A BILL TO BE ENTITLED

AN ACT

relating to the disclosure and use of artificial intelligence.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 12, Business & Commerce Code, is amended by

adding Chapter 611 to read as follows:

CHAPTER 611. ARTIFICIAL INTELLIGENCE TRANSPARENCY

Sec. 611.001. DEFINITION. In this chapter, "artificial

intelligence" means a machine-based system that:

(1) when given a set of objectives by an individual,

makes predictions, recommendations, or decisions that influence a

real or virtual environment; and

(2) uses inputs from an individual or machine to:

(A) perceive or interpret a real or virtual

environment;

(B) use automation to analyze a perception or

interpretation of a real or virtual environment; or

(C) use models to infer or form opinions on

information or a proposed action.

Sec. 611.002. PROVISION OF INFORMATION BY AND DUTIES OF

USER OF ARTIFICIAL INTELLIGENCE. (a) A person who uses artificial

intelligence in conducting business or otherwise providing a good

or service, including operating or providing access to a social

media platform, creating or distributing political advertising, or

providing financial services, to a resident of this state shall:

(1) implement and maintain standards representing the

best practices of the artificial intelligence industry;

(2) provide a tool for an individual to whom the person

is providing a good or service that enables the individual to detect

the use of artificial intelligence;

(3) make available to any individual affected by a

decision made by artificial intelligence an explanation of how and

why the artificial intelligence reached that decision; and

(4) ensure that artificial intelligence does not

demonstrate bias or discriminate against an individual on the basis

of any legally protected classification.

(b) Artificial intelligence is considered to be used to

provide a good or service to an individual under Subsection (a)

regardless of whether the individual can directly access the

artificial intelligence.

Sec. 611.003. ENFORCEMENT. A violation of this chapter is a

deceptive trade practice under Subchapter E, Chapter 17, and is

actionable under that subchapter.

SECTION 2. This Act takes effect September 1, 2025.