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Texas House Bill 1709, known as the Texas Responsible Artificial Intelligence Governance Act, aims to create a comprehensive regulatory framework for high-risk AI systems. Set to potentially take effect in September 2025, the bill emphasizes transparency, fairness, and accountability in AI applications, particularly in hiring and employment decisions. Employers utilizing AI technologies must prepare to align their practices with these new regulations to avoid penalties.
The bill defines high-risk AI systems as those significantly influencing consequential decisions, such as hiring and access to services. Key provisions include mandatory transparency and disclosure obligations, annual impact assessments, and bias mitigation requirements. Employers must engage with AI vendors to ensure compliance, as non-compliance could lead to substantial fines and legal challenges.
• Texas HB 1709 establishes regulations for high-risk AI systems in employment.
• Employers must prepare for compliance with new AI transparency and accountability standards.
High-risk AI systems are defined as those that significantly influence consequential decisions affecting access to opportunities.
Employers must disclose the use of AI in hiring processes and the factors considered by the AI.
The bill requires employers to identify and mitigate risks of algorithmic discrimination against protected classes.
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