WHAT THIS BILL REGULATES · 4 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.
Sec. 611.001. DEFINITION. In this chapter, "artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.
Section 611.001 defines artificial intelligence broadly as any machine-based system that, given human-set objectives, makes predictions, recommendations, or decisions influencing a real or virtual environment, and that uses human or machine inputs to perceive, analyze, or infer information about that environment. The definition closely tracks the NIST-style functional definition and is not limited to generative AI, large language models, or any particular architecture — it sweeps in traditional ML systems, expert systems, and predictive analytics alongside newer generative tools.
(a)(1) 1 A person who uses artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 in conducting business or otherwise providing a good or service, including operating or providing access to a social media platform, creating or distributing political advertising, or providing financial services, to a resident of this state shall: (1) implement and maintain standards representing the best practices of the artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 industry;
(a)(2) 2 A person who uses artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 in conducting business or otherwise providing a good or service, including operating or providing access to a social media platform, creating or distributing political advertising, or providing financial services, to a resident of this state shall: (2) provide a tool for an individual to whom the person is providing a good or service that enables the individual to detect the use of artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001;
(a)(3) 3 A person who uses artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 in conducting business or otherwise providing a good or service, including operating or providing access to a social media platform, creating or distributing political advertising, or providing financial services, to a resident of this state shall: (3) make available to any individual affected by a decision made by artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 an explanation of how and why the artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 reached that decision;
(a)(4) 4 A person who uses artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 in conducting business or otherwise providing a good or service, including operating or providing access to a social media platform, creating or distributing political advertising, or providing financial services, to a resident of this state shall: (4) ensure that artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 does not demonstrate bias or discriminate against an individual on the basis of any legally protected classification.
(b) Artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001 is considered to be used to provide a good or service to an individual under Subsection (a) regardless of whether the individual can directly access the artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that: (1) when given a set of objectives by an individual, makes predictions, recommendations, or decisions that influence a real or virtual environment; and (2) uses inputs from an individual or machine to: (A) perceive or interpret a real or virtual environment; (B) use automation to analyze a perception or interpretation of a real or virtual environment; or (C) use models to infer or form opinions on information or a proposed action.Bus. & Com. Code § 611.001.
Section 611.002 is the bill's operative provision, imposing four distinct obligations on any person who uses AI in conducting business or providing goods or services to Texas residents. The covered activities are illustratively broad — the statute expressly names social media platforms, political advertising, and financial services, but the operative clause covers any business use of AI. The four duties are: maintaining industry best-practice standards, providing an AI-detection tool to affected individuals, making decision explanations available, and ensuring non-discrimination across legally protected classifications.
Subsection (b) clarifies that AI is considered used to provide a good or service even if the individual cannot directly access the AI system — meaning back-end AI processing (e.g., credit scoring, insurance underwriting, content recommendation) triggers the same obligations as consumer-facing AI.
Sec. 611.003. ENFORCEMENT. A violation of this chapter is a deceptive trade practice under Subchapter E, Chapter 17, and is actionable under that subchapter.
Section 611.003 provides the enforcement mechanism: any violation of Chapter 611 constitutes a deceptive trade practice under Subchapter E of Chapter 17 of the Business & Commerce Code — the Texas Deceptive Trade Practices–Consumer Protection Act (DTPA). This incorporates the full DTPA enforcement toolkit, including attorney general enforcement, private consumer actions, actual damages (with trebling for knowing violations), and injunctive relief. The DTPA's pre-suit demand-letter and cure procedures also apply.