Texas HB5496 mandates transparency and fairness in the use of artificial intelligence in business.

HB5496 adds a new chapter to the Texas Business & Commerce Code, establishing rules for the use of artificial intelligence. It defines artificial intelligence as a system that makes decisions influencing real or virtual environments, using inputs to perceive, analyze, or infer. Businesses using AI in Texas must follow industry best practices, provide tools for individuals to detect AI use, explain AI decisions, and ensure AI is free from bias. Violations are considered deceptive trade practices. The law takes effect September 1, 2025.

Texas HB5496 mandates transparency and fairness in the use of artificial intelligence in business.

HB5496 adds a new chapter to the Texas Business & Commerce Code, establishing rules for the use of artificial intelligence. It defines artificial intelligence as a system that makes decisions influencing real or virtual environments, using inputs to perceive, analyze, or infer. Businesses using AI in Texas must follow industry best practices, provide tools for individuals to detect AI use, explain AI decisions, and ensure AI is free from bias. Violations are considered deceptive trade practices. The law takes effect September 1, 2025.