Boards and Commissions - As introduced, provides for a new definition for the term "artificial intelligence" for the Tennessee artificial intelligence advisory council act; expands, from 24 to at least 24 and at most 27, the number of members on the council; directs the council to make various other changes. - Amends TCA Title 4, Chapter 3, Part 31.

SB 1362 redefines "artificial intelligence" in Tennessee law as machine-based systems that make predictions, recommendations, or decisions influencing environments. It expands the Tennessee AI Advisory Council from 24 to 24-27 members, requiring at least two members with AI research/development experience and allowing nonvoting experts to advise. The bill mandates the council to compile an annual inventory of state and federal AI-related laws by December 2025, identifying overlaps or gaps, and to recommend data privacy best practices aligned with state data policies. This directly affects the AI Advisory Council and state agencies managing AI systems and data.