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 that influence real or virtual environments. The definition further specifies three functional characteristics: perceiving environments, abstracting perceptions into models, and using model inference to formulate options. This is a definitions-only amendment and imposes no compliance obligations on any party.
(b)(17) Two (2) or three (3) nonvoting member experts, appointed pursuant to subdivision (c)(6).
Section 2 of the bill expands the advisory council's membership from a fixed 24 members to a range of 24–27, accommodating two or three nonvoting expert advisory members appointed under the new subdivision (c)(6). This is an internal governmental composition change and imposes no compliance obligations on private parties.
(c)(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.
(c)(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.
(c)(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 appointment and operations provisions. At least two governor-appointed members must have demonstrated AI research or development experience. The joint chairs may invite additional private-sector or academic AI experts as nonvoting advisory members or subcommittee participants, subject to the 27-member cap. The joint chairs must administer council meetings in accordance with state law and the council's charter. These are internal government governance provisions with no private-party compliance obligations.
(c)(4)(A) 1 As part of its recommended action plan, the advisory council shall identify best practices for data privacy and security for state agencies; and
(c)(4)(B) 1 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 advisory council's recommended action plan duties. The council must identify best practices for data privacy and security for state agencies as part of its action plan. When recommending such best practices, the council must reference and comply with the enterprise AI policy promulgated by the Department of Finance and Administration. These obligations run to the advisory council itself — a state governmental body — and impose no duties on private parties.
(e)(1) 2 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)(A)–(C) 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 adds a new subsection directing the advisory council to compile, by December 31, 2025, and annually thereafter, 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 create barriers to AI innovation; suggest revisions needed to harmonize AI-related laws; and evaluate alignment with federal directives and industry frameworks. This is a government study mandate directed at the advisory council and imposes no private-party compliance obligations.
This act takes effect July 1, 2025, the public welfare requiring it.
Section 6 establishes a July 1, 2025 effective date for the act, invoking the public-welfare exception. This is a standard effective-date provision and creates no compliance obligation.