ARTIFICIAL INTELLIGENCE TRANSPARENCY ACT

HB 28, the Artificial Intelligence Transparency Act, requires businesses in New Mexico using AI for major decisions (like loans, jobs, housing, or healthcare) to notify consumers before AI influences those decisions. It mandates clear explanations for negative outcomes - including reasons, data used, and human oversight - and provides consumers a chance to correct data or appeal decisions reviewed by humans. The bill also forces AI chatbots ("companion products") to disclose their AI nature at the start of each conversation and prohibits misleading claims about being human. These requirements apply to all businesses operating in New Mexico using AI for consequential decisions, effective July 1, 2026.