Amends TCA Title 4.

Until September 30, 2025, this bill creates the Tennessee artificial intelligence advisory council ("council"), to be attached to the department of finance and administration for administrative purposes. The council must be composed of 19 members and may consist of up to 21 members, as follows: (i) the commissioner of economic and community development or the commissioner's designee; (ii) the commissioner of labor and workforce development or the commissioner's designee; (iii) the commissioner of education or the commissioner's designee; (iv) the attorney general or a designee with knowledge of legal matters related to artificial intelligence technology; (v) the chief technology officer for the state or the officer's designee; (vi) the administrative head of the Tennessee office of homeland security or the administrative head's designee; (vii) one member of the house of representatives, to be appointed by the speaker of the house of representatives; (viii) one member of the senate, to be appointed by the speaker of the senate; (ix) two representatives of local government interests, to be appointed by the governor; (x) two representatives of higher education interests, to be appointed by the governor; (xi) two representatives of workforce development interests, to be appointed by the governor; (xii) two representatives of the business community involved in sectors likely impacted by artificial intelligence, to be appointed by the governor; (xiii) two representatives of artificial intelligence developers or experts, to be appointed by the governor; (xiv) one representative of academics with a concentration in technology policy, to be appointed by the governor; and (xv) if the governor determines it is necessary to appoint additional members, up to two other persons, to be appointed by the governor. In the event of a vacancy on the advisory council, the chair must notify the respective appointing authority, who must then appoint a person to fill the vacancy. This bill requires the governor to appoint one member to serve as chair of the advisory council. This bill requires the chair to call all meetings and requires the advisory council to meet at least four times per calendar year. The chair may establish subcommittees of the advisory council's members as necessary to ensure the council's effective and efficient operation. This bill requires the council to submit an action plan to the governor addressing how to (i) position this state competitively to ensure its citizens capture the full economic benefit from artificial intelligence opportunities and (ii) responsibly leverage artificial intelligence to improve the efficiency of state and local government services. No later than June 30, 2025, this bill requires the chair to submit to the governor, the speaker of the senate, and the speaker of the house of representatives a report containing, at a minimum, the following findings: (1) The current state of artificial intelligence and its likely impact on this state's labor market conditions; (2) How the labor market impact might reshape this state's key industries, occupations, and foundational skillsets; (3) Initiatives to stimulate economic growth, create jobs, and enhance talent development in the face of artificial intelligence-related changes; (4) Recommend legal regulations or policy changes needed to ensure the responsible and ethical use of artificial intelligence in this state, while protecting the rights of Tennessee citizens; (5) Ways to encourage artificial intelligence innovation and entrepreneurship and strategies to support workers displaced by artificial intelligence; and (6) Proposed policy changes related to workforce development, educational systems, and research opportunities for colleges and universities in this state. No later than September 30, 2025, this bill requires the chair to deliver to the governor, the speaker of the senate, and the speaker of the house of representatives a final report containing, at a minimum, the following findings: (1) Principles and values to guide artificial intelligence use in state and local governments; (2) Governance framework with policies, procedures, and processes for the development, deployment, and use of artificial intelligence by state and local governments; (3) Evaluation of potentially beneficial use cases for deployment of artificial intelligence tools and strategies by the state to improve government services; (4) Risk analysis of potential threats to this state's key infrastructure from artificial intelligence technologies; and (5) Recommendations on how this state can support state and local government employees through the artificial intelligence transition. This bill provides that members of the advisory council receive no compensation for their service but must be reimbursed for official travel expenses in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration. This bill requires all state departments and agencies to cooperate with the advisory council in carrying out its duties and to provide support or other assistance as reasonably requested. The advisory council may consult with other persons and organizations with expertise related to artificial intelligence, government infrastructure, and economic development.