Texas Enacts Responsible Artificial Intelligence Governance Act
The Texas Responsible Artificial Intelligence Governance Act (TRAIGA), signed into law recently, introduces a comprehensive regulatory framework governing the use of artificial intelligence (AI) technologies in the state. Set to take effect on January 1, 2026, this legislation aims to impose new requirements on both companies and government entities that utilize AI systems across various sectors.
Key Takeaways
- TRAIGA introduces regulations on AI usage, focusing on compliance for companies and government entities.
- Provisions include prohibitions on certain AI applications, mandatory disclosures in healthcare, and the establishment of an AI regulatory “sandbox”.
- The act creates new exemptions to Texas’ existing biometrics law for specific AI scenarios.
- Non-compliance with TRAIGA could result in significant financial penalties, urging covered entities to prepare for compliance.
Overview
TRAIGA aims to address the complexities associated with AI technologies, particularly surrounding biometrics, healthcare, and behavioral manipulation. The law’s introduction reflects the growing recognition of the need for responsible governance of AI systems, especially in light of recent legislative trends across various states.
Key Provisions
- Narrowing Scope of Texas Biometrics Law: TRAIGA introduces significant carve-outs to Texas’ Capture or Use of Biometric Identifier law (CUBI). Most notably, it exempts AI systems that are not intended to uniquely identify individuals and those aimed at preventing illegal activities.
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Prohibiting Certain AI Uses: The act prohibits the development of AI systems intended to:
- Manipulate human behavior to incite self-harm, harm to others, or criminal activity.
- Discriminate against protected classes in violation of civil rights.
- Produce or distribute visual child sexual abuse material or certain sexually explicit content.
- Infringe upon individual rights guaranteed under the U.S. Constitution.
- Disclosure Requirements in Healthcare: TRAIGA mandates that healthcare providers clearly disclose any use of AI systems in treatment scenarios, ensuring transparency for patients.
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Regulating Governmental Use of AI: The law enforces numerous requirements for governmental entities, including:
- Disclosure when consumers interact with AI systems.
- Prohibiting social scoring and uniquely identifying individuals without consent.
- Regulatory Development Sandbox: TRAIGA establishes a framework allowing companies to test innovative AI systems under specific conditions, protecting them from certain legal repercussions during this trial phase.
Enforcement Authority
TRAIGA does not provide a private right of action, delegating exclusive enforcement authority to the Texas Attorney General (AG). The law outlines civil penalties ranging from $10,000 to $200,000 per violation, depending on the nature and circumstances of the infraction. Violations may also incur daily penalties for continued non-compliance.
How to Prepare
In the time leading up to TRAIGA’s implementation, it is crucial for organizations to assess their AI systems for compliance. As the Texas AG intensifies its focus on privacy and litigation, understanding and adhering to TRAIGA’s requirements will be essential for companies operating within the state.
