HB5496 - Relating to the disclosure and use of artificial intelligence.

  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.