AI Meets the Lawmakers: A Look at Texas’ Attempts to Regulate Artificial Intelligence

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11 Jan 2022
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Article by: Law Clerk Jose De LunaOver the next few months, the 89th Texas Legislature will introduce and pass bills that impact a variety of fields from healthcare to education. One hotly contested issue is the regulation of the artificial intelligence (“AI”) industry. ChatGPT, the posterchild of generative AI, was released to the public just a few weeks before the 88th Texas Legislative Session. Since then, AI has experienced tremendous growth and is rapidly becoming a trillion-dollar industry. With each success story new issues are raised. AI may provide quick answers to problems, but questions remain on the collection of personal data. Software may lead to more efficient business practices but the risk of job loss to automation is prevalent. The potential benefits and harm of AI had not been fully realized during the 88th session and the industry remained largely unaddressed. Over the last two years, lawmakers have had opportunities to better understand the technology, leading to introduced bills seeking to regulate AI.Healthcare AI is rapidly transforming the healthcare industry and presenting new opportunities to cure and treat diseases. HB 2298 seeks to create a grant program for hospitals and healthcare facilities in the acquisition of AI technologies that scan medical images for cancer detection. The bill comes with reporting obligations to better understand the effectiveness of the technologies. Other bills seek to regulate AI by placing an obligation on the accuracy of information obtained from such resources. Similarly, HB 1265 would require medical providers using AI software for mental health services to be available for communication and to intervene when issues arise. Other proposed laws seek to regulate the use of AI in health insurance by requiring documentation of AI use in utilization review decisions and prohibiting the use of AI as the sole basis for denying medical care.EducationThe implementation of AI remains of particular concern in the school setting where cheating, the use of AI in classroom instruction, and bullying have posed challenges to schools nationwide. SB 382 proposes amending the Texas Education Code by completely prohibiting school districts and charter schools from using AI to provide instruction to students or replacing a teacher’s role of providing instruction. Filed bills seek to include prohibited uses of AI under the cyberbullying definition and explicitly prohibit studentsfrom using AI to create sexually explicit content depicting other students. HB 641 seeks to amend sixth grade social studies curriculum to provide students with media literacy which includes learning to identify content created or modified by AI.Business and CommerceAI is becoming increasingly involved in large and small businesses. SB 668 seeks to require certain large businesses to disclose on websites the AI models used along with its functions. HB 1709 provides for sweeping regulation on businesses using “high-risk” AI systems which affect consumers access to services including but not limited to education, financial services, housing, insurance, and legal services. The bill would require the creation of policies mitigating risk, procedures for violations of the act’s provisions, and would grant the Texas Attorney General enforcement authority.GovernmentRepresentatives have set out to increase the Texas government’s use and understanding of AI technologies. HB 2818would create an artificial intelligence division within the Department of Information Resources. The division would be tasked with assisting state agencies and entities in modernizing legacy systems and implementing projects undertaken by the division.Artificial Intelligence is just one of the many complex issues that the Texas Legislature is aiming to address this session. Our office will continue to monitor the 89th Legislative Session and is available to discuss how new laws may impact your public or private industry.At JCA Law, we are committed to providing expert legal counsel tailored to your needs. Whether you’re seeking guidance in education law, employment law, or general civil litigation, our experienced team is ready to assist you. Please contact us at one of our 3 locations.Laredo216 W Village Blvd Suite 202 Laredo, TX 78041, USAOffice: (956) 717-1300San AntonioOne International Center, 100 N. E. Loop 410, Suite 1070 San Antonio, TX 78216, USAOffice: (210) 465-7440Corpus Christi4466 South Staples St. Corpus Christi, TX 78411Office: (361) 333-229

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