S.B. No. 2567 aims to amend the Business & Commerce Code in Texas by addressing deceptive trade practices related to the use of artificial intelligence (AI) systems and algorithmic pricing. The bill introduces new definitions for "Artificial intelligence system" and "Algorithmic pricing systems," which describe the use of machine learning technologies to perform tasks typically associated with human intelligence and the generation of pricing recommendations, respectively. Additionally, the bill adds a new provision to the list of deceptive practices, specifically stating that failing to disclose information regarding the use of AI systems or algorithmic pricing for setting prices constitutes a deceptive act.

The bill also makes several amendments to existing provisions regarding false, misleading, or deceptive acts or practices. Notably, it deletes a previous provision and replaces it with a new clause that explicitly includes the failure to disclose information about AI and algorithmic pricing systems as a deceptive practice. The changes will take effect on September 1, 2025, and will apply only to acts or practices occurring on or after that date, ensuring that any actions taken before the effective date will be governed by the law in effect at that time.

Statutes affected:
Introduced: Commerce Code 17.46 (Commerce Code 17)