Texas healthcare providers who use artificial intelligence for diagnostic or treatment purposes now face new disclosure requirements under Senate Bill 1188, which took effect September 1, 2025, and House Bill 149, effective since January 1, 2026.
If you're using AI tools in your practice, understanding these new requirements is essential for compliance and protecting your patients and practice.
SB 1188: New Texas Guidelines for Using AI as a Healthcare Diagnostic Tool
SB 1188, effective since September 1, 2025, establishes clear rules for healthcare practitioners using artificial intelligence for diagnostic purposes, including AI-powered recommendations for diagnosis or treatment based on patient medical records.
Healthcare providers may use AI for diagnostic purposes, but only if:
- The practitioner stays within their scope of license, certification, or authorization to provide healthcare services in Texas
- The specific AI use isn't restricted or prohibited by other state or federal laws
- The practitioner reviews all AI-generated records according to Texas Medical Board standards (i.e., you can't simply accept AI recommendations without proper review and documentation of that review process)
These new requirements are codified in Section 183.005(a) of the Texas Health and Safety Code.
New Patient Disclosure Requirement
Here's what many providers might miss – you must disclose your use of AI technology to your patients. This isn't optional.
Per SB 1188, healthcare practitioners who use AI for diagnostic purposes "must disclose the practitioner's use of that technology to the practitioner's patients." The disclosure can be verbal or written, but it must clearly inform patients that you use AI for care-related purposes.
Healthcare providers should review all aspects of SB 1188, as it also includes requirements for data storage, biological sex documentation, parental access to minor records, and other compliance obligations beyond AI use.
Texas HB 149: Additional Disclosure Requirement for AI Use in Healthcare
HB 149, or the Texas Responsible Artificial Intelligence Governance Act, regulates AI systems statewide beginning January 1, 2026. Broadly, the law prohibits certain AI uses (such as to manipulate human behavior or intentionally discriminate against protected persons), creates the Texas Artificial Intelligence Council, and establishes a regulatory sandbox for AI testing.
The law requires state governmental agencies to disclose to consumers when they are interacting with an AI system. While the law does not generally apply to all private businesses in all circumstances, the disclosure requirement applies to private providers of healthcare services.
Codified in Section 552.051 of the Texas Business & Commerce Code, this disclosure obligation covers AI systems used for any healthcare service or treatment, including diagnostic tools, preventive care applications, or treatment planning systems.
- The disclosure must be "clear and conspicuous" and written in "plain language" – even if it is obvious that the patient is interacting with an AI system.
- Providers cannot use "dark patterns" to obscure the disclosure.
- The disclosure may be provided via web link.
HB 149 also requires that the disclosure be provided "not later than the date the service or treatment is first provided" or "as soon as reasonably possible" in emergency situations.
What These New Laws Mean for Your Practice
If you're currently using AI tools for diagnostic purposes or for any patient care or treatment plan, you must now comply with the patient disclosure procedures outlined inSB 1188 and HB 149. Both bills are now in effect and codified into Texas law.
These disclosure requirements encompass various AI applications, including:
- AI-powered imaging analysis
- AI tools that analyze patient data to suggest diagnoses or personalized treatment plans
- AI-powered wearable devices and sensors that monitor patients' vital signs and other health metrics
- AI-powered chatbots and virtual assistants that provide personalized mental health support
Consider including the required disclosure information in:
- Initial patient intake forms
- Informed consent documents
- Treatment explanations during visits
- Patient education materials
- Electronic health record notifications
If you haven't yet implemented these disclosures, you need to do so immediately to avoid potential enforcement action.
Potential Penalties and Enforcement
Texas’s Health and Safety Code establishes that regulatory agencies may take disciplinary action – including license suspension or revocation – against covered entities that violate requirements codified in Chapter 183 (including those added by SB 1188). The Texas Attorney General is also authorized to seek injunctive relief and civil penalties ranging from $5,000 to $250,000 per violation, depending on the nature and severity of violations.
HB 149, added to the Texas Business & Commerce Code, falls under the enforcement authority of the Texas Attorney General, who can impose civil penalties ranging from $10,000 to $200,000 per violation.
Ensure Immediate Compliance
With both laws now in effect, healthcare providers must ensure compliance immediately.
Key steps to take now:
- Inventory your AI tools – Identify which technologies in your practice use AI for diagnostic, treatment planning, patient care, or preventive care purposes
- Update documentation protocols – Ensure proper physician review and documentation of AI-generated diagnostic results
- Develop disclosure procedures – Create consistent methods for informing patients about AI use in compliance
- Train your staff – Make sure all practitioners understand the new requirements under both laws
Legal Counsel for Compliance with Texas’s New AI Healthcare Law
The experienced healthcare attorneys at Hendershot Cowart P.C. can help you navigate these new AI disclosure requirements and the broader SB 1188 and HB 149 compliance obligations. We focus on helping Texas healthcare providers understand and implement regulatory requirements that protect both patients and practices.
These laws are already in effect. Don't risk non-compliance. Contact Hendershot Cowart P.C. today at (713) 783-3110 to schedule a consultation.