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.
(2) "Artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions that influence real or virtual environments. For purposes of this part, an artificial intelligence system uses machine and human-based inputs to: (A) Perceive real and virtual environments; (B) Abstract such perceptions into models through analysis in an automated manner; and (C) Use model inference to formulate options for information or action.Tenn. Code Ann. § 4-3-3103(2)" or "AI" mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions that influence real or virtual environments. For purposes of this part, an artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions that influence real or virtual environments. For purposes of this part, an artificial intelligence system uses machine and human-based inputs to: (A) Perceive real and virtual environments; (B) Abstract such perceptions into models through analysis in an automated manner; and (C) Use model inference to formulate options for information or action.Tenn. Code Ann. § 4-3-3103(2) system uses machine and human-based inputs to: (A) Perceive real and virtual environments; (B) Abstract such perceptions into models through analysis in an automated manner; and (C) Use model inference to formulate options for information or action.
Section 1 of the bill replaces the existing statutory definition of artificial intelligence with an updated version that defines AI as a machine-based system capable of making predictions, recommendations, or decisions influencing real or virtual environments. The definition is functionally descriptive, tracking familiar federal formulations (e.g., the NIST-derived definition used in the National AI Initiative Act). This is a definitions-only amendment with no independent compliance obligation.
(b) Tennessee Code Annotated, Section 4-3-3104(b), is amended by deleting "twenty-four (24)" and substituting "at least twenty-four (24) but not more than twenty-seven (27)", and by adding the following as a new subdivision (17): (17) Two (2) or three (3) nonvoting member experts, appointed pursuant to subdivision (c)(6).
Section 2 amends the council membership cap from a fixed 24 members to a range of 24 to 27, and adds a new category of two or three nonvoting expert members appointed under the new subdivision (c)(6). This is an internal government organizational provision that creates no private-sector compliance obligation.
(5) At least two (2) members appointed by the governor under subdivision (c)(14) must have demonstrated experience in artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions that influence real or virtual environments. For purposes of this part, an artificial intelligence system uses machine and human-based inputs to: (A) Perceive real and virtual environments; (B) Abstract such perceptions into models through analysis in an automated manner; and (C) Use model inference to formulate options for information or action.Tenn. Code Ann. § 4-3-3103(2) research or development, including in academia, private industry, or technology policy.
(6) The joint chairs may invite additional AI private sector specialists or academic experts to serve as nonvoting, advisory members, or to participate in subcommittees, at the request of any member; provided, however, that the council does not exceed twenty-seven (27) members. The council may invite to participate or present before the council as many experts, entities, or individuals for testimony as the joint chairs may require and approve.
(7) The joint chairs shall administer meetings and operations of the council in accordance with the quorum requirements, voting procedures, and all other duties as required by state law regarding advisory councils, as well as the charter of the Tennessee artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions that influence real or virtual environments. For purposes of this part, an artificial intelligence system uses machine and human-based inputs to: (A) Perceive real and virtual environments; (B) Abstract such perceptions into models through analysis in an automated manner; and (C) Use model inference to formulate options for information or action.Tenn. Code Ann. § 4-3-3103(2) advisory council.
Section 3 adds three new subdivisions to the council's operational provisions: a requirement that at least two governor-appointed members have demonstrated AI research or development experience, authorization for joint chairs to invite nonvoting AI specialists or academic experts to serve in advisory capacities or on subcommittees, and a directive that joint chairs administer meetings in accordance with state law and the council's charter. These are government-internal organizational requirements with no private-sector compliance implications.
(A) As part of its recommended action plan, the advisory council shall identify best practices for data privacy and security for state agencies; and
(B) When recommending best practices for AI data handling, privacy, and security, the advisory council shall reference and comply with the requirements established in the enterprise artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions that influence real or virtual environments. For purposes of this part, an artificial intelligence system uses machine and human-based inputs to: (A) Perceive real and virtual environments; (B) Abstract such perceptions into models through analysis in an automated manner; and (C) Use model inference to formulate options for information or action.Tenn. Code Ann. § 4-3-3103(2) policy, or any such policy amended thereto, as promulgated by the department of finance and administration, or a subsequent state agency with jurisdiction over subject matters pertaining to the handling of state information and data;
Section 4 adds two subdivisions to the council's recommended action plan duties. The council must identify best practices for data privacy and security for state agencies, and when doing so must reference and comply with the enterprise artificial intelligence policy promulgated by the Department of Finance and Administration. These are duties placed on the advisory council itself — an internal government body — rather than on any private party. No private-sector compliance obligation is created.
(e)(1) Not later than December 31, 2025, and by December 31 of each year thereafter, the advisory council shall, in consultation with relevant state agencies, compile an inventory of existing federal and state laws, regulations, and executive orders that affect the development or use of artificial intelligenceArtificial intelligence"Artificial intelligence" or "AI" mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions that influence real or virtual environments. For purposes of this part, an artificial intelligence system uses machine and human-based inputs to: (A) Perceive real and virtual environments; (B) Abstract such perceptions into models through analysis in an automated manner; and (C) Use model inference to formulate options for information or action.Tenn. Code Ann. § 4-3-3103(2) in this state.
(e)(2) The inventory compiled under this subsection (e) must: (A) Identify any potential overlaps, conflicts, or gaps that may create barriers to AI innovation; (B) Suggest revisions or clarifications needed to harmonize AI-related laws and reduce unnecessary compliance burdens; and (C) Evaluate how proposed or existing regulations align with federal directives and recognized industry frameworks to ensure consistency and predictability.
Section 5 creates a new ongoing duty for the advisory council to compile, by December 31 of each year beginning in 2025, an inventory of existing federal and state laws, regulations, and executive orders affecting AI development or use in Tennessee. The inventory must identify overlaps, conflicts, and gaps that may hinder AI innovation; suggest revisions to harmonize AI-related laws; and evaluate alignment with federal directives and recognized industry frameworks. This is a study-and-report obligation placed on the advisory council — a government body — and does not create any private-sector compliance duty.
This act takes effect July 1, 2025, the public welfare requiring it.
The act takes effect July 1, 2025. This is a standard effective date provision with no independent compliance obligation.