The biggest players in the artificial intelligence universe, such as Google, Meta, Apple, and Amazon, will have to give the attorney general access to their records to ensure compliance with a new AI regulatory law proposed by Senate State Affairs Chair Brian Hughes (R-Tyler).
SB 668 adds Chapter 2003, Business & Commerce Code, to regulate major businesses that use AI to provide services to an individual in this state, including answering questions, gathering information, summarizing information, generating textual, audio, or visual material, or providing information to be used in lending, underwriting, risk assessment, investing, or hiring decisions. A “major” business means one that generated, or is more than 25 percent owned by a person who generated, at least $100 billion in total revenue, including revenue generated by subsidiaries.
The proposal requires the business to disclose on its website or in another easily accessible electronic location the name of each AI model, a brief description of the model’s functions and purposes, the name of each public or private third party that provided input on the AI model and a description of that input, and any changes made to the model based on third-party input. The bill does not regulate third-party input provided in an individual’s personal capacity or based on an individual’s own experience using the service.
Now the fun part. The legislation requires the business to give the attorney general access to its records to ensure compliance with the statute. A violation of the statute may be prosecuted under the DTPA. The bill provides whistleblower protection to anyone who in good faith reports a suspected violation of the statute. The attorney general may further report to the governor, legislature, or any other federal, state, or local official any information obtained by an investigation or enforcement action, with the option to make the information public.
Rep. Giovanni Capriglione (R-Southlake) is expected to introduce a more sweeping AI regulatory proposal in the coming weeks.
