Texas TRAIGA: What the Responsible AI Governance Act Means for Your Business

What Is TRAIGA?

The Texas Responsible AI Governance Act (TRAIGA) was signed into law on June 22, 2025, and took effect on January 1, 2026. It is one of the broadest state-level AI governance laws in the United States.

Unlike narrower laws that focus on specific AI applications (like NYC Local Law 144 for hiring), TRAIGA establishes general governance principles for AI systems used across all sectors. It is particularly significant because Texas is the second-most populous US state — any company serving Texas residents is likely subject to this law.

Who Must Comply

TRAIGA applies to:

• Any person or entity conducting business in Texas
• Any person or entity providing products or services to Texas residents
• Government entities in Texas that use AI systems
• AI system developers that create tools used in Texas

Given Texas's population of over 30 million people, this effectively means any company doing business nationally in the United States needs to be aware of TRAIGA.

Core Requirements

1. AI Disclosure Requirements

When a government entity or business uses an AI system to interact with individuals, they must provide plain-language notice that the individual is interacting with an AI system rather than a human being. This applies to:

• Chatbots and virtual assistants
• AI-generated phone calls or voice interactions
• AI-driven customer service interactions
• Any system where a person might reasonably believe they are communicating with a human

The notice must be provided before or at the beginning of the interaction.

2. Prohibited AI Uses

TRAIGA expressly prohibits certain uses of AI:

• Social scoring: Using AI to assign scores to individuals based on social behavior, lifestyle choices, or personality traits to determine access to services or treatment
• Biometric identification without consent: Using AI-powered biometric identification systems (facial recognition, voice recognition) without the individual's informed consent
• Systems designed to cause harm: AI systems specifically designed to encourage self-harm, violence, or other dangerous behavior
• Deceptive AI: AI systems designed to deceive individuals in ways that cause material harm

3. Government-Specific Requirements

Texas state government entities have additional obligations:

• Must conduct an inventory of AI systems in use
• Must assess risks associated with each AI system
• Must implement safeguards to protect individual rights
• Must provide clear channels for individuals to contest AI-driven government decisions
• Must report annually on AI usage and governance

4. AI Advisory Council

TRAIGA establishes the Texas AI Advisory Council, which is responsible for:

• Advising the governor and legislature on AI policy
• Monitoring AI developments and risks
• Recommending updates to state AI governance
• Issuing best practice guidelines for AI deployment
• Publishing an annual report on the state of AI in Texas

What This Means for Businesses

For Companies Deploying Customer-Facing AI

If your company uses chatbots, virtual assistants, AI-generated communications, or automated decision systems that interact with Texas residents, you need to:

1. Identify all AI touchpoints where customers or users interact with AI
2. Implement disclosure notices at each touchpoint before the interaction begins
3. Review AI systems for prohibited uses, especially social scoring and biometric identification without consent

For Companies Deploying Employee-Facing AI

While TRAIGA's primary focus is on consumer-facing and government uses, companies should also consider:

• AI-based employee monitoring or evaluation tools
• Biometric access systems used in Texas offices
• AI tools used to make employment decisions affecting Texas-based employees

For AI Developers

If you develop AI tools or platforms used by Texas businesses or government entities, you should:

• Ensure your products support disclosure requirements (make it easy for deployers to display notices)
• Document your systems' intended uses and limitations
• Ensure your products do not enable prohibited uses

Comparison with Other State AI Laws

How to Comply

Step 1: AI Inventory

Catalog every AI system your company uses that:

• Interacts with Texas residents (customer service bots, virtual assistants, automated communications)
• Makes decisions affecting Texas residents (lending, insurance, employment)
• Collects biometric data from Texas residents

Step 2: Disclosure Implementation

For each AI system that interacts with individuals:

• Add clear, plain-language disclosure before the interaction begins
• Use language like: "You are communicating with an AI assistant" or "This service is powered by artificial intelligence"
• Ensure disclosures are visible and not hidden in fine print

Step 3: Prohibited Use Review

Review all AI systems against the prohibited use categories:

• No social scoring of individuals
• No biometric identification without consent
• No systems designed to encourage harmful behavior
• No deceptive AI that causes material harm

Step 4: Consent Mechanisms for Biometric AI

If your company uses biometric identification powered by AI (facial recognition, fingerprint scanning, voice authentication):

• Implement informed consent mechanisms before collecting biometric data
• Clearly explain what biometric data is collected and why
• Provide opt-out alternatives where feasible

Step 5: Ongoing Monitoring

• Monitor guidance from the Texas AI Advisory Council
• Track any regulatory updates or enforcement actions
• Review AI systems periodically for compliance
• Document your compliance efforts

What to Watch

TRAIGA is relatively new, and several aspects are still developing:

• Enforcement mechanisms: The law does not specify detailed penalty amounts for all violations. Enforcement will likely evolve as the AI Advisory Council issues guidance
• Federal preemption: The December 2025 Trump Executive Order on AI signals a push for federal AI policy that may preempt some state laws. Texas's law could be affected by future federal legislation
• Advisory Council guidance: The Texas AI Advisory Council will issue best practice guidelines that will shape how the law is interpreted and enforced

Related Regulations

• Colorado AI Act: More prescriptive requirements for high-risk AI with specific impact assessment obligations
• NYC Local Law 144: Narrower but more established enforcement for AI in hiring
• Illinois BIPA: Overlaps with TRAIGA's biometric identification requirements
• EU AI Act: Comprehensive risk-based framework that influenced TRAIGA's approach
• Utah AI Policy Act: Similar disclosure requirements for generative AI