Texas enacts broad artificial intelligence regulations

Texas becomes the fourth U.S. state to regulate Artificial Intelligence, introducing new rules for developers and deployers effective January 2026.

On June 22, 2025, Texas Governor Greg Abbott signed the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) into law, establishing a comprehensive state-level regulatory framework for Artificial Intelligence. This landmark legislation, which takes effect on January 1, 2026, positions Texas as the fourth state in the nation to introduce such broad-based Artificial Intelligence oversight, affecting both private and public entities engaged in the development and deployment of these systems within or involving Texas.

TRAIGA applies to developers and deployers of Artificial Intelligence systems and draws inspiration from the European Union’s Artificial Intelligence Act. The new law prohibits several uses of Artificial Intelligence, including intentional design to manipulate behavior leading to physical harm or criminal activity, unlawful discrimination against protected classes, creation or dissemination of explicit content such as child pornography or deepfakes, and infringement of constitutional rights. TRAIGA includes safeguards such as compliance safe harbors—specifically compliance with the National Institute of Standards and Technology’s Artificial Intelligence Risk Management Framework—to encourage responsible practices. There is no private right of action; instead, enforcement authority rests solely with the Texas attorney general’s office, which has an active track record in pursuing significant settlements and penalties for privacy and technology violations.

The legislation also addresses intersections with existing Texas privacy laws. It provides exemptions to the state’s biometric privacy law (Capture or Use of Biometric Identifier Act) during certain Artificial Intelligence training and development activities and outlines obligations for processors to assist data controllers under the Texas Data Privacy and Security Act. For enforcement, TRAIGA allows consumers to file complaints directly with the attorney general. The law imposes tiered statutory fines for various violation categories, with additional penalties and the possibility of license revocation for regulated entities. Notably, violators are given a 60-day statutory opportunity to cure breaches before penalties are imposed, reflecting an emphasis on remediation. This multifaceted approach aims to both stimulate responsible innovation and protect the public from harmful applications of Artificial Intelligence, marking a significant shift in the regulatory landscape for technology companies operating in Texas.

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