Texas SB2966 requires private companies using artificial intelligence for consequential decisions to establish a governance framework to protect.

Texas SB2966 amends the Business & Commerce Code to establish a framework for private companies using artificial intelligence systems in critical decision-making. These companies must ensure consumer protections. The bill defines "artificial intelligence system" as a machine learning-based system that generates outputs influencing environments. A "consequential decision" is one materially affecting a consumer. Companies violating this requirement face a civil penalty of up to one dollar. The act takes effect September 1, 2025.

Texas SB2966 requires private companies using artificial intelligence for consequential decisions to establish a governance framework to protect.

Texas SB2966 amends the Business & Commerce Code to establish a framework for private companies using artificial intelligence systems in critical decision-making. These companies must ensure consumer protections. The bill defines "artificial intelligence system" as a machine learning-based system that generates outputs influencing environments. A "consequential decision" is one materially affecting a consumer. Companies violating this requirement face a civil penalty of up to one dollar. The act takes effect September 1, 2025.