AI Legislative Guide |
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USA, Texas |
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(United States)
Firm
Baker Botts L.L.P.
Contributors
Richard Harper |
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| Has specific legislation, final regulations or other formal regulatory guidance addressing the use of AI in your jurisdiction been implemented (vs reliance on existing legislation around IP, cyber, data privacy, etc.)? | Yes. Governor Greg Abbott signed HB 149, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), into law on June 22, 2025. TRAIGA becomes effective January 1, 2026. |
| Please provide a short summary of the legislation/regulations/guidance and explain how legislators aim to strike the balance between innovation and regulation. | TRAIGA applies to any person that “promotes, advertises, or conducts business” in Texas, offers products or services to Texas residents, or “develops or deploys” an artificial intelligence system in the state. An AI system includes generative AI, agentic AI, recommender systems, and biometric technologies. In reflecting Texas’s effort to balance innovation with consumer protection, TRAIGA focuses on prohibiting specific harmful AI practices through an intent-based liability framework. This includes restrictions against behavioral manipulation, constitutional rights violations, discriminatory AI, and exploitation of minors. For governmental entities, TRAIGA imposes additional requirements, such as:
TRAIGA provides multiple safe harbor provisions for organizations demonstrating good faith compliance efforts. Organizations may not be found liable if they:
In an additional effort to balance innovation with consumer protection, TRAIGA also establishes a first-in-the-nation state AI regulatory sandbox, a controlled environment where approved participants can test AI systems free from full regulatory compliance for up to 36 months without being penalized. |
| Which agency regulates the use of AI in your jurisdiction? | The Texas Attorney General holds exclusive enforcement authority over TRAIGA. Before pursuing enforcement action, the Attorney General must provide notice and allow a 60-day cure period for violations. The Act provides no private right of action and expressly nullifies any city or county ordinances regulating AI, aiming to prevent a local patchwork. |
AI Legislative Guide
USA, Texas
(United States) Firm Baker Botts L.L.P.Contributors Richard Harper Travis Wofford Margaret Welsh Dino Barajas Leslie McCombs Roussev
Updated 18 Aug 2025Yes. Governor Greg Abbott signed HB 149, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), into law on June 22, 2025. TRAIGA becomes effective January 1, 2026.
TRAIGA applies to any person that “promotes, advertises, or conducts business” in Texas, offers products or services to Texas residents, or “develops or deploys” an artificial intelligence system in the state. An AI system includes generative AI, agentic AI, recommender systems, and biometric technologies.
In reflecting Texas’s effort to balance innovation with consumer protection, TRAIGA focuses on prohibiting specific harmful AI practices through an intent-based liability framework. This includes restrictions against behavioral manipulation, constitutional rights violations, discriminatory AI, and exploitation of minors. For governmental entities, TRAIGA imposes additional requirements, such as:
- Disclosure to consumers that they are interacting with AI;
- Prohibition of AI-based social scoring that could lead to detrimental treatment; and
- Restrictions on biometric identification from public sources without consent.
TRAIGA provides multiple safe harbor provisions for organizations demonstrating good faith compliance efforts. Organizations may not be found liable if they:
- Discover violations through internal testing, including adversarial testing and red team exercises;
- Substantially comply with the NIST AI Risk Management Framework or other recognized standards;
- Are in compliance with state agency guidelines; or
- Experience third-party misuse of their AI systems.
In an additional effort to balance innovation with consumer protection, TRAIGA also establishes a first-in-the-nation state AI regulatory sandbox, a controlled environment where approved participants can test AI systems free from full regulatory compliance for up to 36 months without being penalized.
The Texas Attorney General holds exclusive enforcement authority over TRAIGA. Before pursuing enforcement action, the Attorney General must provide notice and allow a 60-day cure period for violations. The Act provides no private right of action and expressly nullifies any city or county ordinances regulating AI, aiming to prevent a local patchwork.