WHAT THIS BILL REGULATES · 3 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This act may be cited as the "Artificial Intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) Transparency Act".
Establishes the short title of the act as the Artificial Intelligence Transparency Act. Creates no compliance obligations.
A–L As used in the Artificial Intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) Transparency Act: A. "artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A)" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments; B. "companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B)" means a software application that uses generative artificial intelligencegenerative artificial intelligence"generative artificial intelligence" means an artificial intelligence system that learns the patterns and structure of the artificial intelligence system's input training data and then generates new data that have similar characteristics;Section 2(I) and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user; C. "consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C)" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service; D. "consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D)" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisionsconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C) are made; E. "departmentdepartment"department" means the state department of justice;Section 2(E)" means the state department of justice; F. "deploydeploy"deploy" means to put into effect, host or otherwise commercialize an artificial intelligence system or a companion product;Section 2(F)" means to put into effect, host or otherwise commercialize an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system or a companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B); G. "deployerdeployer"deployer" includes a person doing business in New Mexico, the state or a political subdivision of the state that deploys or uses an artificial intelligence system to make a consequential decision affecting a consumer;Section 2(G)" includes a person doing business in New Mexico, the state or a political subdivision of the state that deploysdeploy"deploy" means to put into effect, host or otherwise commercialize an artificial intelligence system or a companion product;Section 2(F) or uses an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system to make a consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C) affecting a consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D); H. "developerdeveloper"developer" means a person doing business in New Mexico that: (1) makes an artificial intelligence system publicly available for use in New Mexico; or (2) intentionally and substantially modifies an artificial intelligence system that is used in New Mexico;Section 2(H)" means a person doing business in New Mexico that: (1) makes an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system publicly available for use in New Mexico; or (2) intentionally and substantially modifies an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system that is used in New Mexico; I. "generative artificial intelligencegenerative artificial intelligence"generative artificial intelligence" means an artificial intelligence system that learns the patterns and structure of the artificial intelligence system's input training data and then generates new data that have similar characteristics;Section 2(I)" means an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system that learns the patterns and structure of the artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system's input training data and then generates new data that have similar characteristics; J. "interactive sessioninteractive session"interactive session" means a dialogue between a human user and a companion product;Section 2(J)" means a dialogue between a human user and a companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B); K. "machine learningmachine learning"machine learning" means the development and incorporation of algorithms to build data-derived statistical models that are capable of drawing inferences from previously unseen data without explicit human instruction;Section 2(K)" means the development and incorporation of algorithms to build data-derived statistical models that are capable of drawing inferences from previously unseen data without explicit human instruction; and L. "substantial factorsubstantial factor"substantial factor" means a decision, score, label, prediction or recommendation generated by an artificial intelligence system that is a basis or partial basis to make a consequential decision.Section 2(L)" means a decision, score, label, prediction or recommendation generated by an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system that is a basis or partial basis to make a consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C).
Defines twelve terms used throughout the Act, including the two covered entity types — deployer and developer — the covered platform — companion product — and the scope-defining terms consequential decision and substantial factor. The deployer definition is notably broad: it includes both private persons doing business in New Mexico and the state and its political subdivisions. The companion product definition tracks California SB 243's concept of a companion chatbot but uses different language, focusing on adaptive, personalized, emotionally resonant responses sustaining a long-term one-on-one conversational relationship.
A 1 Before an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system is used to generate a substantial factorsubstantial factor"substantial factor" means a decision, score, label, prediction or recommendation generated by an artificial intelligence system that is a basis or partial basis to make a consequential decision.Section 2(L) or make a consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C) concerning a consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D), a deployerdeployer"deployer" includes a person doing business in New Mexico, the state or a political subdivision of the state that deploys or uses an artificial intelligence system to make a consequential decision affecting a consumer;Section 2(G) shall provide notice directly to the consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D) that the system will be used to make or generate a substantial factorsubstantial factor"substantial factor" means a decision, score, label, prediction or recommendation generated by an artificial intelligence system that is a basis or partial basis to make a consequential decision.Section 2(L) to be used in making the decision. The notice shall include the name of the developerdeveloper"developer" means a person doing business in New Mexico that: (1) makes an artificial intelligence system publicly available for use in New Mexico; or (2) intentionally and substantially modifies an artificial intelligence system that is used in New Mexico;Section 2(H), trade name, version number or other information that distinctly identifies the artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system and the deployerdeployer"deployer" includes a person doing business in New Mexico, the state or a political subdivision of the state that deploys or uses an artificial intelligence system to make a consequential decision affecting a consumer;Section 2(G)'s contact information.
B(1)–(2) 2 When an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system has been used to generate a substantial factorsubstantial factor"substantial factor" means a decision, score, label, prediction or recommendation generated by an artificial intelligence system that is a basis or partial basis to make a consequential decision.Section 2(L) or make a consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C) concerning a consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D) that is adverse to the consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D), the deployerdeployer"deployer" includes a person doing business in New Mexico, the state or a political subdivision of the state that deploys or uses an artificial intelligence system to make a consequential decision affecting a consumer;Section 2(G) shall provide directly to the consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D): (1) a statement explaining: (a) the principal reasons for the consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C) and the specific facts or data about the consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D) or the consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D)'s application that most influenced the consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C); (b) the degree and manner in which the system contributed to and the level of human oversight used in making the consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C); and (c) the source and type of data that was processed by the system to generate a substantial factorsubstantial factor"substantial factor" means a decision, score, label, prediction or recommendation generated by an artificial intelligence system that is a basis or partial basis to make a consequential decision.Section 2(L); (2) an opportunity to correct any incorrect personal data that was used to generate a substantial factorsubstantial factor"substantial factor" means a decision, score, label, prediction or recommendation generated by an artificial intelligence system that is a basis or partial basis to make a consequential decision.Section 2(L);
B(3)–C 3 an opportunity to appeal the adverse consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C). C. An appeal of an adverse consequential decisionconsequential decision"consequential decision" means a decision that has a material legal or similarly significant effect on the provision or denial to a consumer of or the cost or terms of: (1) education enrollment; (2) employment or an employment opportunity; (3) a financial or lending service; (4) housing; (5) health care service; (6) insurance; or (7) legal service;Section 2(C) by a consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D) shall be reviewed by a human being.
D 4 All information, notices and statements to a consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D) shall be provided: (1) in plain language and in all languages in which the deployerdeployer"deployer" includes a person doing business in New Mexico, the state or a political subdivision of the state that deploys or uses an artificial intelligence system to make a consequential decision affecting a consumer;Section 2(G) in the ordinary course of business provides contracts, disclaimers, sale announcements and other information to users of its products or services; and (2) in a format that is accessible to consumersconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D) with disabilities.
Section 3 imposes three tiers of transparency obligation on deployers using AI for consequential decisions. Pre-decision notice requires that the consumer be told before the AI system is used, including identifying information about the system and the deployer's contact details. Post-adverse-decision disclosure requires an explanation of the principal reasons, the specific facts or data about the consumer that drove the decision, the degree of AI involvement and human oversight, the source and type of data processed, an opportunity to correct incorrect personal data, and an opportunity to appeal. Human review of appeals mandates that any appeal of an adverse consequential decision be reviewed by a human being. A formatting requirement applies to all notices: plain language, multilingual availability matching the deployer's ordinary business communications, and accessibility for consumers with disabilities.
A 5 At the beginning of each interactive sessioninteractive session"interactive session" means a dialogue between a human user and a companion product;Section 2(J) in which a person uses a companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B), the companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B) shall provide directly to the person a notice that the companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B) is an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system. The notice shall be provided in a manner distinct from the format that the product uses for the interactive sessioninteractive session"interactive session" means a dialogue between a human user and a companion product;Section 2(J) and shall be: (1) presented in plain language and in all languages in which the deployer of the companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B) in the ordinary course of business provides contracts, disclaimers, sale announcements and other information to users of its products or services; (2) presented conspicuously, legibly and persistently in the user interface for text-based interactive sessionsinteractive session"interactive session" means a dialogue between a human user and a companion product;Section 2(J); (3) presented a minimum of once every thirty minutes for a duration of no less than thirty seconds for interactive sessionsinteractive session"interactive session" means a dialogue between a human user and a companion product;Section 2(J) that are not text-based; and (4) in a format that is accessible to persons with disabilities.
B 6 A companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B) shall not represent itself as a human being or make material misrepresentations about the companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B)'s identity, capabilities, professional certifications or training data.
Section 4 regulates companion products — generative-AI applications designed to sustain emotionally resonant, long-term conversational relationships. It imposes two distinct duties. First, the companion product must disclose at the start of every interactive session that it is an AI system. The disclosure must be visually distinct from the session format, presented in plain language and all the deployer's ordinary business languages, and accessible to persons with disabilities. For text-based sessions, the notice must be conspicuous, legible, and persistent in the user interface. For non-text-based sessions (e.g., voice), the notice must be presented at least once every thirty minutes for at least thirty seconds. Second, the companion product may not represent itself as human or make material misrepresentations about its identity, capabilities, professional certifications, or training data.
A The departmentdepartment"department" means the state department of justice;Section 2(E) shall have authority to enforce the provisions of the Artificial Intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) Transparency Act. A consumerconsumer"consumer" means a person who is a user or recipient of goods or services in New Mexico and for whom consequential decisions are made;Section 2(D) affected by the use of an artificial intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) system or deployment of a companion productcompanion product"companion product" means a software application that uses generative artificial intelligence and through the software application's design and function is capable of generating adaptive, personalized and emotionally resonant responses to sustain a coherent, long-term, one-on-one conversational relationship with a user;Section 2(B) in New Mexico may bring a civil action in district court against a developerdeveloper"developer" means a person doing business in New Mexico that: (1) makes an artificial intelligence system publicly available for use in New Mexico; or (2) intentionally and substantially modifies an artificial intelligence system that is used in New Mexico;Section 2(H) or deployerdeployer"deployer" includes a person doing business in New Mexico, the state or a political subdivision of the state that deploys or uses an artificial intelligence system to make a consequential decision affecting a consumer;Section 2(G) for declaratory or injunctive relief and attorney fees for a violation of that act.
B Nothing in the Artificial Intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) Transparency Act preempts or otherwise affects any right, claim, remedy, presumption or defense available in law or equity.
C A violation of the Artificial Intelligenceartificial intelligence"artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit and implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments;Section 2(A) Transparency Act is an unfair or deceptive trade practice and may be enforced in the manner provided in the Unfair Practices Act.
Section 5 establishes the enforcement framework. The Department of Justice has enforcement authority. In parallel, any consumer affected by the use of an AI system or deployment of a companion product may bring a private civil action for declaratory relief, injunctive relief, and attorney fees — but notably not for monetary damages. A savings clause preserves all other rights, claims, remedies, presumptions, and defenses available at law or equity. Violations are classified as unfair or deceptive trade practices enforceable under the Unfair Practices Act, which independently provides for remedies including treble damages and civil penalties.
The effective date of the provisions of this act is July 1, 2026.
Sets the effective date of the Act as July 1, 2026.