Texas Rides in With Third State AI Law

Author: Robert S. Teachout, Brightmine Legal Editor

June 24, 2025

Texas has become the third state in the US to enact a law governing the use of artificial intelligence (AI). The Texas Responsible AI Governance Act (TRAIGA) sets broad overarching standards and protections regarding AI use, with some that would be applicable to employers. It goes into effect January 1, 2026.

The Act follows the risk-based model for the development and use of AI systems for "high-risk" decisions relating to employment, finance, education, health-care services, housing and insurance. The law also:

  • Prohibits developing or deploying an AI system with the intent to unlawfully discriminate against protected classes under state law. However, "disparate impact" caused by use of a system alone is insufficient to prove a violation.
  • Bans AI human behavior manipulation tools designed to incite self-harm, violence, or criminal behavior.
  • Prohibits using AI to classify people based on behavior or characteristics and assigning them a social score or estimation.
  • Prohibits AI systems from censoring or limiting access to political content or infringing on freedom of expression or association.

The law includes safeguards against the capture or use of biometric data without consent and specifies that consent is not granted merely because a person makes or post images or videos that are made available to the public (such as on social media platforms). However, a business may use biometric data only to train an AI system provided it does not identify individuals.

Companies that meet the Small Business Administration definition of "small business" would have no obligations under TRAIGA. The state attorney general has sole authority to enforce the law or pursue civil penalties and sanctions.

Colorado was the first state to enact a law regulating the use of AI, with Illinois following shortly after. New York City also restricts the use of AI tools to screen candidates or employees for making employment decisions, and other states have laws regarding the use of biometrics in employment.