AI regulation

AI Regulation – Texas Responsible Artificial Intelligence Governance Act (TRAIGA)
(TRAIGA), which becomes effective January 1, 2026.

This law focuses on prohibiting specific harmful uses of AI with an “intent” standard, establishing a regulatory sandbox, and creating an advisory council.

TRAIGA applies to any entity that conducts business in Texas, produces services used by Texas residents, or develops/deploys AI systems in the state. A private cause of action is NOT created.

Prohibited Uses (requiring “intent”):
• Manipulating human behavior to incite or encourage self-harm, harm to others, or criminal activity.
• Unlawfully discriminating against a protected class in violation of state or federal law (disparate impact alone is not sufficient to show intent).
• Infringing, restricting, or impairing an individual’s constitutional rights.
• Producing or distributing child pornography or unlawful deepfakes (including sexually explicit text conversations impersonating a minor).

Governmental Entities are prohibited from:
• using AI for “social scoring” that results in detrimental treatment.
• Using AI to uniquely identify individuals through biometric data (finger prints, facial images at airport check-in, security cameras) collected from publicly available images without consent if it infringes on rights.
• It requires the government to provide clear and conspicuous disclosure when consumers interact with a government-deployed AI system.

However, on December 12, 2025, President Trump signed an executive order that was crafted to bar state laws on artificial intelligence that he says slow innovation will face political and legal opposition from states seeking to preserve their right to regulate AI.

A major enforcement mechanism of the EO directs the Commerce Department to block states with onerous AI regulations from the $42 billion Broadband Equity, Access, and Deployment program (BEAD). The BEAD program is being used to increase rural access to internet. Among other things, it funds the installation of fiber optic cables along Farm to Market roads in rural areas of Texas.

This EO will lead to legal challenges from states that have already enacted legislation.