The state of Texas has enacted laws and/or issued guidance on Artificial Intelligence (AI). Companies subject to Texas law should be familiar with all relevant AI-related laws, regulations, and guidance, including those listed below.

Laws and Regulations

This law includes requirements and restrictions for public and private sector entities with regard to certain uses of AI.  In particular, the law provides that a person may not develop or deploy an AI system: (i) in a manner that intentionally aims to incite or encourage a person to commit harm or engage in criminal activity; (ii) with the intent to unlawfully discriminate against a protected class; (iii) with the sole intent for the AI system to infringe, restrict, or otherwise impair an individual ’s Constitutional rights; (iv) to produce or distribute sexually explicit content and child pornography.

This law addresses financial exploitation or financial abuse using artificially generated media or phishing communications, and provides a civil penalty. 

This law creates the criminal offense of possession, promotion, or production of certain obscene visual material appearing to depict a child, regardless of whether the depiction is an image of an actual child, a cartoon or animation, or an image created using an AI application or other computer software.

This law provides that a utilization review agent may not use an automated decision system to make, wholly or partly, an adverse determination. In addition, the law permits the state Insurance Commissioner to audit and inspect at any time a utilization review agent’s use of an automated decision system for utilization review. The law, however, does not prohibit the use of an algorithm, AI system, or automated decision system for administrative support or fraud-detection functions. 

This law addresses the prosecution and punishment of certain criminal offenses prohibiting sexually explicit visual material involving depictions of children, created using an AI application or other computer software, that to a reasonable person is virtually indistinguishable from an actual minor.