Texas Becomes Latest State to Regulate AI Governance
On July 16, 2025, Texas took a significant step in regulating artificial intelligence (AI) technologies with the enactment of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA). This legislation is set to enter into force on January 1, 2026, and applies broadly to any individual or entity involved in the development, offering, or promotion of AI systems within the state.
Scope of TRAIGA
TRAIGA is designed to govern a wide range of activities related to AI, affecting not only private companies but also government agencies. It addresses various uses of AI, including:
- Inciting or encouraging harmful or criminal behavior
- Infringement of constitutional rights
- Unlawful discrimination against protected classes
- Distributing sexually explicit content or unlawful deep fake videos or images
This comprehensive approach aims to mitigate risks associated with the misuse of AI technologies and ensure ethical standards are upheld in their deployment.
Disclosure Requirements
One of the critical aspects of TRAIGA is the requirement for clear disclosure when AI is used to interact with consumers. Organizations must notify users, in a manner that is clear, conspicuous, and easily understood, that they are engaging with an AI system. This provision aims to enhance transparency and inform users about the nature of their interactions.
Regulatory Sandbox
TRAIGA also introduces a regulatory sandbox designed to foster innovation while ensuring compliance with the law. This sandbox allows entities to test AI technologies under regulatory supervision, providing a controlled environment for up to 36 months. The Texas attorney general has the authority to enforce TRAIGA and can levy civil penalties for non-compliance.
Continued Monitoring and Guidance
The implementation of TRAIGA signifies Texas’s commitment to balancing innovation with the responsible use of AI. As the landscape of state-level AI governance evolves, ongoing monitoring and guidance will be crucial to address compliance and its implications effectively.
In conclusion, the enactment of TRAIGA represents a pivotal moment in AI governance, setting a precedent for other states to follow as they navigate the complexities of regulating emerging technologies.
