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SB668 introduces significant requirements for businesses with over $100 billion in revenue utilizing artificial intelligence in Texas. It mandates transparency regarding AI models and third-party contributions, impacting a wide range of industries. Companies must prepare to disclose specific information on their websites, ensuring compliance by September 1, 2025.
Key Provisions
Defines 'artificial intelligence' and its applications.
Mandates disclosure of AI model names and functions on websites for entities with over $100 billion in revenue.
Requires reporting of third-party input on AI models.
Prohibits discrimination against individuals reporting violations.
Allows attorney general access to records for compliance checks.
Classifies violations as deceptive trade practices.
Latest Legislative Action
Referred to Delivery of Government Efficiency
Bill Sponsors
Name
Role
District
Bryan HughesR
Sponsor
SD-001
Roll Call Votes
S ·
Three day rule suspended ·
Apr 24, 2025
31 Yea 0 NayPassed ✓
S ·
Read 3rd time ·
Apr 24, 2025
31 Yea 0 NayPassed ✓
Compliance Checklist
Disclose AI model names and functions on your website Who: Businesses using AI to provide services in Texas Deadline: By September 1, 2025 Penalty: Deceptive trade practice penalties
Report third-party input on AI models Who: Businesses using AI to provide services in Texas Deadline: By September 1, 2025 Penalty: Deceptive trade practice penalties
Full Legal Analysis
SB668 establishes a framework for the disclosure of information related to artificial intelligence in Texas. It requires entities with over $100 billion in revenue using AI to provide services to disclose the names and functions of AI models, details about third-party inputs, and any modifications made based on such inputs. The bill applies to these high-revenue businesses using AI for various services, including decision-making in lending and hiring. Non-compliance with these requirements is classified as a deceptive trade practice, allowing for enforcement actions by the attorney general. The bill aims to enhance transparency and accountability in AI usage, aligning with similar legislative efforts in other states focused on algorithmic accountability and consumer protection.
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