NM HB28

Requires deployers to notify consumers before using AI systems to make or influence "consequential decisions" affecting education enrollment, employment, financial services, housing, health care, insurance, or legal services

Mandates that consumers receive explanations for adverse AI-driven decisions, including the principal reasons, specific data used, degree of AI involvement, and level of human oversight

Provides consumers the right to correct inaccurate personal data and appeal adverse consequential decisions, with appeals required to be reviewed by a human

Requires AI "companion products" (chatbots designed for ongoing conversational relationships) to disclose they are AI at the start of each session and prohibits them from representing themselves as human

Grants enforcement authority to the Department of Justice, allows consumers to bring civil actions for declaratory or injunctive relief, and classifies violations as unfair or deceptive trade practices; effective July 1, 2026