Texas AI Regulation Eases Comprehensive Guidelines for Employers
The Texas Responsible Artificial Intelligence Governance Act (TRAIGA), set to take effect on January 1, 2026, is poised to introduce significant changes for employers using AI within the state. This comprehensive legislation aims to regulate AI systems while fostering innovation and protecting constitutional rights.
TRAIGA applies to any person or entity that develops, deploys, or provides AI systems operating in Texas or serving Texas residents, including employers utilising AI tools in their business operations.
Key provisions of TRAIGA include the prohibition of AI systems that intentionally incite harm, infringe upon constitutional rights, or unlawfully discriminate against protected classes. Employers must ensure their AI systems do not promote self-harm, criminal activity, or violate civil rights laws.
The use of biometric identifiers is tightly regulated under TRAIGA. Employers cannot capture or store biometric data for commercial purposes without the individual's informed consent, particularly if sourced from publicly available media. Exceptions exist for voiceprints used by financial institutions, AI training purposes, and fraud prevention or security purposes.
Transparency is another key aspect of TRAIGA, with government agencies required to disclose when consumers are interacting with AI systems. This emphasis on transparency may influence best practices in the private sector.
A Texas Artificial Intelligence Council will oversee AI governance, while enforcement authority lies with the Texas Office of the Attorney General, which can impose substantial civil penalties for noncompliance. However, structured opportunities for entities to cure violations are available.
TRAIGA also introduces a sandbox program to allow controlled testing and development of AI innovations under regulatory supervision, helping employers and developers innovate while managing risks.
Employers must conduct due diligence on AI systems they develop or use, ensuring compliance with TRAIGA's prohibitions. Consent protocols for collecting biometric data must be robust to avoid violations. There is an increased compliance burden to ensure AI tools do not manipulate or harm users or infringe on constitutional rights.
Employers should monitor developments and possibly engage with the regulatory sandbox for new AI deployments. Failure to comply with TRAIGA exposes employers to civil penalties enforced by the Texas Attorney General.
In summary, TRAIGA creates a rigorous regulatory environment for employers using AI in Texas, balancing innovation with protections against discrimination, harm, and privacy violations, particularly regarding biometric data. Employers should carefully review their AI practices to align with these new legal requirements before the law takes effect in 2026.
TRAIGA offers a glimpse into the future of AI regulation, balancing constitutional protections, fairness, and innovation. Employers should use the breathing room provided by TRAIGA to assess their AI systems, vet their vendors, and prepare for future AI governance developments. TRAIGA is just the beginning, indicating a growing trend towards comprehensive AI regulation.
In light of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), employers must assess their AI tools for compliance with new regulations, particularly in areas such as AI bias laws, employer compliance, and biometric privacy laws. To foster innovation and protect constitutional rights, TRAIGA encourages education-and-self-development in responsible AI and technology, requiring employers to ensure their AI systems do not infringe upon constitutional rights or unlawfully discriminate against protected classes.
