Texas Sets New Standards for Responsible AI With TRAIGA Law—What Businesses and Health Care Providers Need to Know

On June 22, 2025, Texas Governor Greg Abbott signed the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) into law. Effective January 1, 2026, TRAIGA sets a clear legal framework for the ethical development, deployment, and use of AI systems within Texas. This legislation carries significant implications for businesses, government agencies, and health care providers operating in the state.

Purpose of TRAIGA

TRAIGA focuses on encouraging responsible AI innovation while safeguarding individuals and groups from foreseeable risks. It demands transparency, accountability, and ethical AI usage to ensure systems respect privacy, prevent harm, and comply with existing legal standards.

Scope: Who Must Comply?

• Entities developing, deploying, or marketing AI systems in Texas
• Businesses offering AI-powered products or services to Texas residents
• State agencies utilizing AI systems

Exemptions

• Financial institutions retaining voiceprint data
• Entities using biometric data for non-identifying purposes
• AI systems applied for security, fraud prevention, or law enforcement

Key Legal Requirements

• Transparency: Consumers must be clearly informed when interacting with AI systems.
• Accountability: Developers must prevent manipulative outcomes, unlawful discrimination, and potential harm.
• Appeals: Consumers can challenge AI-driven decisions impacting their health, safety, or basic rights.

Prohibited Practices Under TRAIGA

• Government use of AI for social scoring or biometric surveillance without consent
• Creation or distribution of AI-generated child exploitation material or explicit deepfakes
• Deploying AI systems intended to incite self-harm, criminal acts, or discrimination

Notable Features

• Regulatory Sandbox: Allows AI systems to be tested under relaxed rules for up to 36 months.
• Texas AI Council: A 10-member body overseeing AI ethics, public safety, and innovation.
• Enforcement: The Texas Attorney General holds exclusive enforcement authority, with penalties from $10,000 to $200,000 per violation.

Impact on Health Care Service Providers

Health care providers using AI for diagnostics, treatment planning, or patient monitoring face specific obligations. TRAIGA defines health care services broadly and applies if AI is involved in any related service or treatment.

• Transparency: Patients must be informed when AI supports their care.
• Biometric Data: AI cannot use biometric data to uniquely identify individuals without consent.
• Ethical Use: AI systems must avoid manipulative or biased outcomes.

However, the law lacks detailed guidance on when AI is considered “used in relation to” health care services. This ambiguity raises questions about liability, especially if providers rely on third-party AI solutions not directly controlled by them.

Recommended Compliance Steps for Health Care Providers

• AI Governance: Set up policies and oversight for ethical AI use and transparency.
• Risk Assessment: Evaluate AI systems for bias, privacy risks, and legal compliance.
• Vendor Management: Review third-party AI vendors for adherence to TRAIGA and legal standards.

These steps help mitigate risks and demonstrate due diligence in complying with TRAIGA.

Action Plan for Legal and Business Teams

• Develop an AI Strategy: Align AI initiatives with organizational goals and regulatory requirements.
• Establish Governance: Create committees and policies to oversee AI ethics and vendor compliance.
• Monitor and Audit: Regularly review AI outcomes for fairness, accuracy, and compliance.
• Train Staff: Educate teams on TRAIGA’s provisions and how to handle AI-related incidents.
• Consult Experts: Engage legal and technical advisors to interpret TRAIGA and manage risk.

TRAIGA introduces clear standards for responsible AI use in Texas. Legal professionals and compliance teams should prioritize understanding its requirements to avoid penalties and protect their organizations’ reputations.

For those interested in deepening their AI knowledge and compliance skills, explore practical training options at Complete AI Training.