TX HB5496: Relating to the disclosure and use of artificial intelligence.

In one paragraph

Texas HB 5496 (2025), as introduced, would have added Chapter 611 to the Business & Commerce Code. A person using AI in conducting business or providing a good or service to a Texas resident, including social media, political advertising or financial services, would have had to maintain AI industry best-practice standards, give individuals a tool to detect AI use, explain how and why an AI decision was reached, and ensure the AI does not show bias or discriminate on any legally protected classification. A violation would have been a deceptive trade practice. No enrolled version exists, so it died June 2, 2025.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

No duties for businesses because the bill died. Had it passed, any business using AI to serve Texans would have faced the four duties above, enforced as a deceptive trade practice.

Key provisions

1. 1Sec. 611.002(a)(1): implement and maintain 'standards representing the best practices of the artificial intelligence industry'
2. 2Sec. 611.002(a)(2): provide a tool that 'enables the individual to detect the use of artificial intelligence'
3. 3Sec. 611.002(a)(3): make available to any individual affected by an AI decision 'an explanation of how and why the artificial intelligence reached that decision'
4. 4Sec. 611.002(a)(4): 'ensure that artificial intelligence does not demonstrate bias or discriminate against an individual on the basis of any legally protected classification'
5. 5Sec. 611.002(b): applies regardless of whether the individual can directly access the AI
6. 6Sec. 611.003: 'A violation of this chapter is a deceptive trade practice under Subchapter E, Chapter 17'; no separate penalty amounts
7. 7Section 2: would have taken effect September 1, 2025; no enrolled version exists

Latest legislative action

Apr 7, 2025. Referred to Delivery of Government Efficiency

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