Texas has taken a bold step into the future of technology regulation with the passage of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA). As artificial intelligence becomes increasingly woven into the fabric of daily life, TRAIGA aims to set clear rules for how AI is developed, deployed, and used—especially by businesses and government agencies. If you’re a business owner, tech developer, or simply a Texas resident curious about how AI laws might affect you, here’s what you need to know.
The Scope: Who and What Does TRAIGA Cover?
TRAIGA casts a wide net. It applies to anyone who develops or deploys AI systems in Texas, as well as businesses that promote, advertise, or conduct business in the state using AI. Government entities are also included, though with some exceptions (like hospital districts and higher education institutions). For consumers, the law’s protections kick in when they interact with AI in a personal or household context—employment and commercial uses are not covered.
The law defines an AI system broadly: any machine-based system that infers from inputs to generate outputs—be it content, decisions, predictions, or recommendations—that can influence physical or virtual environments. This means everything from chatbots to complex decision-making algorithms could fall under TRAIGA’s umbrella.
Enforcement: How Will TRAIGA Be Policed?
The Texas Attorney General (AG) is the primary enforcer of TRAIGA. If a violation is suspected, the AG must first send a written notice, giving the alleged violator 60 days to fix the issue, provide documentation, and update internal policies. Only after this window can the AG pursue civil penalties, which can be steep:
- Curable violations: $10,000–$12,000 per violation
- Uncurable violations: $80,000–$200,000 per violation
- Ongoing violations: $2,000–$40,000 per day
State agencies can also impose additional sanctions, such as suspending or revoking licenses and levying fines up to $100,000.
TRAIGA does not allow private lawsuits—enforcement is strictly in the hands of the state.
Safe Harbors and Defenses
Worried about accidental missteps? TRAIGA offers some peace of mind. If a third party misuses your AI, or if you discover a violation through good faith audits or testing, you may not be held liable. Substantial compliance with recognized frameworks like the NIST AI Risk Management Framework can also serve as a strong defense.
Key Provisions: Disclosures and Prohibited Uses
Disclosures to Consumers
Government agencies must clearly inform consumers when they are interacting with AI—no exceptions, even if it seems obvious. These disclosures must be easy to understand, free of manipulative design (no dark patterns), and delivered before or at the time of interaction.
Prohibited Uses
TRAIGA draws a firm line on certain uses of AI:
- Assigning social scores
- Identifying individuals using biometric data without consent (such as fingerprints or iris scans)
- Inciting self-harm, crime, or violence
- Infringing on constitutional rights
- Discriminating against protected classes (race, sex, age, etc.)
- Producing or distributing sexually explicit content or child pornography, including deepfakes
Innovation and Oversight: Sandboxes and Councils
To encourage responsible innovation, TRAIGA introduces a sandbox program. This allows companies to test new AI products in a controlled, compliance-friendly environment before full-scale deployment. The law also establishes the Texas Artificial Intelligence Council, which will provide ongoing guidance and review ethical and legal issues as AI technology evolves.
Practical Steps for Businesses and Agencies
If you’re developing or using AI in Texas, here are some actionable tips:
- Inventory Your AI Systems: Identify all AI tools and systems in use, including third-party solutions.
- Analyze Use Cases: Consider whether your AI interacts with consumers, impacts protected rights, or could be seen as manipulative.
- Review Disclosure Practices: Ensure all consumer-facing AI interactions are accompanied by clear, plain-language disclosures.
- Align with Risk Frameworks: Adopt standards like the NIST AI Risk Management Framework to strengthen compliance and leverage safe harbors.
- Consider the Sandbox: If you’re piloting innovative AI, the sandbox program could offer legal protection and valuable feedback.
Looking Ahead: The Federal Landscape
It’s worth noting that a federal proposal is under consideration that could impose a 10-year moratorium on state-level AI laws. If passed, this would override TRAIGA and similar state regulations. For now, however, Texas businesses and agencies should prepare for TRAIGA’s January 1, 2026, effective date.
Summary: Key Takeaways
- TRAIGA sets new standards for AI development, deployment, and use in Texas.
- The law applies to businesses, developers, and government entities using AI with Texas consumers.
- Enforcement is handled by the Texas Attorney General, with significant penalties for violations.
- Safe harbors exist for those who comply with recognized risk management frameworks or discover violations in good faith.
- Businesses should inventory their AI systems, review use cases, and ensure compliance ahead of the 2026 effective date.