On June 22, 2025, Texas made headlines by signing the Texas Responsible AI Governance Act (TRAIGA) into law. This bold move, led by Governor Greg Abbott, positions Texas at the forefront of artificial intelligence regulation in the United States, even as federal lawmakers continue to debate a nationwide approach.
Why Texas Took Action
While the U.S. Senate discusses a potential moratorium on state-level AI laws, Texas has chosen to act decisively. The state’s leadership believes that AI, while promising, needs clear guardrails to ensure both innovation and the safety of its citizens. By enacting TRAIGA, Texas is sending a message: states can and should play a vital role in shaping the future of technology policy.
What Does TRAIGA Cover?
TRAIGA is designed to:
- Promote responsible development and use of AI systems
- Protect individuals and groups from foreseeable risks
- Ensure transparency about AI risks and usage
- Require state agencies to notify consumers when they are interacting with AI
The law applies broadly to anyone developing or deploying AI in Texas, including both private companies and government entities. This means that if your business or organization uses AI in any capacity within the state, TRAIGA likely affects you.
Key Provisions and Protections
TRAIGA introduces several important requirements:
- Clear Notice: Government agencies must inform consumers when they are interacting with AI, which can be done via a hyperlink or other conspicuous means.
- No Social Scoring: The law prohibits the use of AI to assign social scores or evaluate individuals based on personal characteristics or social behavior.
- Biometric Data Protections: AI systems cannot uniquely identify consumers using biometric data without explicit consent.
- Ethical Boundaries: It is illegal to develop or deploy AI systems that intentionally encourage self-harm, harm to others, or criminal activity. The law also bans AI systems designed to infringe on constitutional rights, unlawfully discriminate, or produce or distribute sexually explicit content, including deepfakes.
Enforcement and Penalties
The Texas Attorney General has exclusive authority to enforce TRAIGA. Penalties for violations are significant: civil fines can range from $10,000 to $200,000, with additional daily penalties for ongoing non-compliance. This underscores the importance of understanding and adhering to the new requirements.
What Should Organizations Do Now?
With the law taking effect on January 1, 2026, organizations have a window to assess their AI systems and ensure compliance. Here are some actionable steps:
- Audit your AI systems: Identify where and how AI is used in your operations.
- Update policies and procedures: Ensure transparency and obtain necessary consents, especially regarding biometric data.
- Train your teams: Make sure staff understand the new requirements and ethical boundaries.
- Monitor for updates: Stay informed about any changes at the federal level that could impact state laws.
Summary: Key Takeaways
- Texas has enacted a comprehensive AI governance law, effective January 1, 2026.
- The law applies to all developers and deployers of AI in Texas, including government agencies.
- Key requirements include transparency, consumer protection, and strict ethical boundaries.
- Significant penalties apply for non-compliance.
- Now is the time for organizations to review and update their AI practices to ensure compliance.