The healthcare industry is constantly evolving. One recent innovation that has a major impact is the use artificial intelligence (AI). Lawmakers throughout the country are grappling with whether to provide guiderails and if so, what they should address. In Texas, a new law directly impacts management of electronic health records (EHRs) and provides guidelines for AI use. These two key points are discussed in more detail below.
#1: EHR storage and access limitations
Texas Senate Bill 1188 mandates that healthcare providers and covered entities store patient EHRs within the United States. This requirement is meant to better ensure that patient data remains under the jurisdiction of U.S. privacy laws, enhancing data protection and security. The law also restricts access to EHRs, allowing only individuals involved in treatment, payment, or healthcare operations to access this sensitive information.
These measures aim to safeguard patient information and prevent unauthorized access, thereby maintaining the integrity and confidentiality of healthcare data.
#2: AI in diagnosis and treatment
The new law also addresses the use of AI in healthcare. It permits the use of AI in diagnosis and treatment recommendations but imposes strict guidelines to help better ensure AI’s responsible use. Under the law, practitioners must disclose AI usage to patients and manually review AI-generated clinical information for accuracy. This requirement emphasizes the importance of human oversight in medical decision-making.
By enforcing these guidelines, the law seeks to balance technological innovation with patient safety and trust in healthcare services.
Penalties for non-compliance
Violations of Senate Bill 1188 can result in civil penalties that range from $5,000 to $250,000, depending on the severity and intent of the violation and jeopardize a practitioner’s professional license.
Texas Senate Bill 1188 is one example of efforts to regulate EHRs and AI in healthcare. Healthcare providers must prepare for these changes to avoid penalties and maintain their professional standing. As the law takes effect January 1, 2026, understanding and implementing these requirements will be crucial for compliance.
Attorney John Rivas is responsible for this communication.

