The proposed "Artificial Intelligence Act" establishes a regulatory framework for the use of high-risk artificial intelligence (AI) systems in New Mexico, focusing on consumer protection and transparency. Developers of AI systems are required to provide comprehensive documentation regarding the intended uses, risks of algorithmic discrimination, and data governance measures. They must disclose any risk incidents within ninety days and maintain transparency about the data used for training their systems. Deployers of these AI systems are also mandated to implement risk management policies and conduct annual impact assessments to identify and mitigate potential algorithmic discrimination risks.

Additionally, the Act allows consumers to pursue civil actions against developers or deployers for violations of the regulations, with enforcement mechanisms in place through the state Department of Justice. Deployers must provide clear information about the AI systems in use, including associated risks and data collection practices, and must notify consumers before making consequential decisions based on AI. The bill includes provisions for a 90-day cure period for alleged violations and outlines exemptions for certain disclosures related to trade secrets. The effective date for these provisions is set for July 1, 2026.