Texas has taken a bold step into the future of artificial intelligence regulation with the passage of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA). Signed into law on June 22, 2025, and set to take effect on January 1, 2026, TRAIGA is poised to reshape how businesses, government agencies, and especially health care providers approach AI systems.
Understanding TRAIGA: A New Era for AI in Texas
TRAIGA’s mission is clear: foster responsible AI innovation while safeguarding individuals and communities from potential risks. The law emphasizes transparency, accountability, and ethical use, ensuring that AI systems in Texas operate with respect for privacy, fairness, and legal standards.
Who Needs to Pay Attention?
TRAIGA’s reach is broad. It applies to:
- Any entity developing, deploying, or marketing AI systems in Texas
- Businesses offering AI-powered products or services to Texans
- State agencies utilizing AI
However, there are notable exemptions, such as certain financial institutions, entities using biometric data for non-identifying purposes, and AI systems used for security or law enforcement.
Key Requirements and Prohibitions
TRAIGA sets out clear expectations for organizations:
- Transparency: Consumers must be informed when they interact with AI systems.
- Accountability: Developers are responsible for ensuring AI systems do not produce manipulative, discriminatory, or harmful outcomes.
- Appeals: Individuals can appeal AI-driven decisions that significantly impact their health, safety, or basic rights.
The law also prohibits government use of AI for social scoring or biometric surveillance without consent, bans the creation or distribution of AI-generated child exploitation material or explicit deepfakes, and forbids developing AI systems intended to incite self-harm, crime, or discrimination.
Special Focus: Health Care Service Providers
Health care providers are at the forefront of TRAIGA’s impact. If you use AI for diagnostics, treatment planning, or patient monitoring, you’ll need to:
- Disclose AI Use: Patients must be informed when AI is involved in their care.
- Restrict Biometric Data: AI systems cannot use biometric data to uniquely identify individuals without explicit consent.
- Uphold Ethical Standards: Avoid manipulative outcomes and biased recommendations in AI-driven health care.
One challenge is the law’s lack of specificity about what counts as “using an AI system in relation to health care.” This ambiguity means providers should err on the side of caution, especially when using third-party tools that may incorporate AI behind the scenes.
Actionable Steps for Compliance
To navigate TRAIGA’s requirements, organizations—especially in health care—should:
- Develop an AI Strategy: Align AI initiatives with organizational goals, focusing on high-value, compliant use cases.
- Establish Governance: Create a governance framework, including policies for ethical AI use and vendor compliance.
- Monitor and Audit: Regularly review AI outputs for accuracy, fairness, and compliance. Audit data practices to protect patient and consumer information.
- Train Your Team: Educate staff and leadership on TRAIGA’s requirements and AI best practices.
- Engage Experts: Consult with legal and technical advisors to ensure robust compliance and risk management.
The Regulatory Sandbox and Oversight
TRAIGA introduces a regulatory sandbox, allowing entities to test AI systems under relaxed rules for up to 36 months. Oversight comes from the Texas AI Council, a 10-member body focused on ethics, safety, and innovation. Enforcement is handled exclusively by the Texas Attorney General, with significant penalties for violations.
Summary: What You Need to Know
- TRAIGA sets a new standard for AI governance in Texas, with a strong focus on transparency and ethics.
- Health care providers must be especially vigilant about AI use, patient disclosure, and data privacy.
- The law’s broad scope and some ambiguities mean proactive compliance is essential.
- Establishing governance, monitoring, and staff training are key to success.
- Penalties for non-compliance are substantial, making early preparation critical.
As Texas leads the way in AI regulation, organizations that act now will be best positioned to thrive in this evolving landscape.