Disclosure of the use of artificial intelligence in the denial of insurance claims

TX HB4635 requires insurance companies to inform customers when artificial intelligence is used to deny their claims. This means that if a claim is rejected based on AI analysis, the insurer must disclose that information to the policyholder. The goal is to promote transparency in the claims process.

Supporters of TX HB4635 argue that this bill enhances consumer rights by ensuring that individuals are aware of how their claims are evaluated. By mandating disclosure of AI usage, it promotes fairness and accountability in the insurance industry, which can help build trust between insurers and policyholders.

Critics of TX HB4635 might argue that the bill could create unnecessary burdens on insurance companies, potentially slowing down the claims process. They may also contend that it could lead to confusion among consumers who may not fully understand the implications of AI in decision-making.