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AI Summary
This bill mandates transparency and accountability in the use of artificial intelligence by any person providing goods or services to Texas residents.
Business Impact
If you use AI in your business in Texas, you must implement best practices and provide transparency by September 1, 2025, or face penalties.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
What This Means
Texas House Bill 5496 aims to enhance transparency in the use of artificial intelligence by requiring any person to disclose AI usage and ensure non-discrimination. It affects any entity using AI in their operations, including social media and financial services. Compliance will be necessary by September 1, 2025.
Key Provisions
- Any person must implement best practices for AI usage.
- Users must be provided tools to detect AI usage.
- Affected individuals must receive explanations of AI decisions.
- AI must not demonstrate bias against protected classifications.
Latest Legislative Action
Referred to Delivery of Government Efficiency
Bill Sponsors
| Name | Role | District |
|---|---|---|
| Salman Bhojani D | Sponsor | HD-092 |
Compliance Checklist
Implement and maintain AI best practices
Who: Businesses using AI in Texas
Deadline: By September 1, 2025
Penalty: Classified as a deceptive trade practice
Who: Businesses using AI in Texas
Deadline: By September 1, 2025
Penalty: Classified as a deceptive trade practice
Provide detection tools for AI usage
Who: Businesses using AI in Texas
Deadline: By September 1, 2025
Penalty: Classified as a deceptive trade practice
Who: Businesses using AI in Texas
Deadline: By September 1, 2025
Penalty: Classified as a deceptive trade practice
Explain AI decision-making processes to affected individuals
Who: Businesses using AI in Texas
Deadline: By September 1, 2025
Penalty: Classified as a deceptive trade practice
Who: Businesses using AI in Texas
Deadline: By September 1, 2025
Penalty: Classified as a deceptive trade practice
Ensure AI does not exhibit bias
Who: Businesses using AI in Texas
Deadline: By September 1, 2025
Penalty: Classified as a deceptive trade practice
Who: Businesses using AI in Texas
Deadline: By September 1, 2025
Penalty: Classified as a deceptive trade practice
Full Legal Analysis
Texas House Bill 5496 introduces Chapter 611 to the Business & Commerce Code, focusing on artificial intelligence transparency. The bill requires any person using AI to implement industry best practices, provide tools for users to detect AI usage, and explain AI decision-making processes. It also mandates that AI systems do not exhibit bias against legally protected classifications. Compliance is required by September 1, 2025, and violations are classified as deceptive trade practices under Subchapter E, Chapter 17, subjecting offenders to penalties under existing trade laws. The definition of 'artificial intelligence' is comprehensive, covering systems that make predictions or decisions based on user inputs. This bill aligns with growing trends in other states to regulate AI usage and ensure accountability.
Official Source
Official Bill Text
View HB5496 on official legislature website →
Affected Industries
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