The Tennessee General Assembly adjourned sine die on the night of April 23, 2026, ending the final session of its two-year term. Among the legislation that did not make it across the finish line was the Artificial Intelligence Public Safety and Child Protection Transparency Act (SB2171/HB1898), a bill that would have created new safety and transparency requirements for large AI companies.
While the House passed HB1898 in mid-April, the Senate companion bill, SB2171, was re-referred to the Senate Commerce & Labor Committee on April 15 and never reached a floor vote before the session ended. Because the 114th General Assembly’s two-year term is now complete, all pending bills die and cannot carry over to the 115th General Assembly when it convenes in 2027.
The bill would have required AI companies earning over $500 million in revenue to publish risk-mitigation plans, report serious chatbot safety incidents to the state attorney general within 15 days, and face civil penalties for violations. It drew both bipartisan support for child safety protections and opposition from industry groups like the Software and Information Industry Association, which argued it would impose unworkable burdens on developers.
According to StateScoop, the bill had been significantly narrowed after receiving feedback from the White House, which has pushed back broadly against state-level AI regulations in favor of a federal approach. Despite those changes, the Senate side ran out of time.
For Tennessee businesses using or developing AI tools, the practical effect is straightforward. No new state-level AI compliance obligations will take effect from this bill. A separate, narrower AI law signed by Governor Lee on April 1 (SB 1580) does take effect on July 1, 2026, prohibiting anyone from representing that an AI system can serve as a qualified mental health professional.
The budget passed this session also includes $38.5 million for artificial intelligence adoption and government efficiency, signaling the state’s continued interest in the technology even as regulatory efforts stalled.
Business owners should expect AI regulation to return when the new legislature convenes in January 2027. The groundwork laid by this bill, including White House engagement and committee work, makes it likely a revised version will be reintroduced. In the meantime, companies operating in Tennessee should track federal AI policy developments and prepare for the possibility of future state requirements.
