On June 22, 2025, Texas Governor Greg Abbott signed the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) into law, positioning the state at the forefront of AI governance in the United States. This legislation marks the final chapter of a bill that received national attention and underwent major changes throughout the legislative process.
As introduced in December 2024, the original draft of TRAIGA proposed a sweeping regulatory scheme modeled after the Colorado AI Act and the EU AI Act, focusing on "high-risk" artificial intelligence systems. However, in March 2025, Texas legislators introduced an amended version that significantly scaled back the bill's scope. Many of the original draft's most onerous requirements—such as the duty to protect consumers from foreseeable harm, conduct impact assessments, and disclose details of high-risk AI systems to consumers—were either deleted entirely or limited to apply solely to governmental entities. Still, the enacted version includes numerous provisions that could impact companies operating in Texas.
The law establishes clear boundaries for AI development and deployment. TRAIGA prohibits the development and deployment of AI systems for certain purposes, including behavioral manipulation, discrimination, creation or distribution of child pornography or unlawful deepfakes, and infringement of constitutional rights. Consistent with Executive Order 14281, TRAIGA only prohibits AI systems developed or deployed "with the intent to unlawfully discriminate against a protected class." Disparate impact alone cannot show an intent to discriminate.
State agencies must provide clear and conspicuous notice to individuals when interacting with an AI system, regardless of whether the interaction is obvious. In healthcare, providers must disclose AI use to patients or their representatives before or at the time of service, except in emergencies, where disclosure must occur as soon as reasonably possible.
A key innovation in TRAIGA is its regulatory sandbox program. The Texas Department of Information Resources, in consultation with the Texas Artificial Intelligence Council, will create a program that provides participants with legal protection and limited market access to test innovative AI systems without obtaining a license, registration, or other regulatory authorization. The sandbox program is designed to promote the safe and innovative use of AI systems across various sectors while balancing the need for consumer protection, privacy, and public safety.
TRAIGA also establishes the Texas Artificial Intelligence Advisory Council, comprising seven qualified members appointed by the governor, lieutenant governor, and speaker of the house. The Council is charged with conducting AI training programs for state agencies and local governments and may issue reports on AI-related topics such as data privacy and security, AI ethics, and legal risks and compliance, with the goal of helping to guide the Texas legislature on effective policy. However, the Council is expressly prohibited from promulgating any binding rules or regulations itself.
Given the size of Texas, its business-friendly environment, and the concentration of tech companies within the state, the law will have a major impact nationally on the overall development and deployment of AI systems and related regulation and legislation. The bill also gives Texas Attorney General Ken Paxton another tool in his recent efforts aimed at privacy and consumer protection enforcement, including against AI systems.