Regulatory Status
Signed June 22, 2025; effective January 1, 2026. TRAIGA is Texas's primary comprehensive AI governance law from the 89th Legislature. It establishes prohibited AI practices applying to all entities that promote, advertise, or conduct business in Texas, produce products or services for Texas residents, or develop/deploy AI systems in the state. Key prohibitions cover behavioral manipulation (inciting self-harm, violence, or criminal activity), government social scoring, unlawful discrimination, government biometric identification from public sources without consent, and constitutional rights infringement via AI. Government agencies must disclose to consumers when they are interacting with an AI system, using clear and conspicuous language free of dark patterns; healthcare-provider AI disclosure to patients is governed separately by Texas SB 1188. Enforcement is exclusively by the Texas Attorney General; no private right of action exists. A 36-month regulatory sandbox program allows companies to test AI systems with certain requirements waived. The law also establishes the Texas Artificial Intelligence Council (seven members) to advise on ethical, privacy, and public safety implications — though the Council cannot adopt binding rules.
Key Requirements
Prohibition on Behavioral Manipulation Cannot develop or deploy AI systems intentionally designed to incite or encourage a person to commit physical self-harm (including suicide), harm another person, or engage in criminal activity
Government Social Scoring Ban Government entities cannot use AI to assign detrimental categorical scores to individuals based on their behavior or personal characteristics
Biometric Identification Prohibition (Government Entities) Government entities cannot use AI with publicly available images or data to uniquely identify individuals via biometric identifiers without consent (law enforcement and fraud prevention excepted). This prohibition does not apply to private-sector employers; their biometric consent obligations for AI tools — such as video-interview face or voice capture — are governed by Texas's CUBI statute (Tex. Bus. & Com. Code §503.001), which TRAIGA amended effective January 1, 2026
Unlawful Discrimination Prohibition Cannot intentionally deploy AI to discriminate against protected classes under state and federal law; note that disparate impact alone is insufficient to prove intent
Constitutional Rights Protection Cannot develop or deploy AI systems designed to infringe constitutional rights or target individuals based on constitutionally protected characteristics
AI Interaction Disclosure Government agencies must disclose to consumers, before or at the time of interaction, that they are interacting with an AI system; disclosures must be clear and conspicuous with no dark patterns. Healthcare-provider AI disclosure to patients is governed separately by Texas SB 1188 (effective September 1, 2025), not by TRAIGA
Insurance Implications
Relevant policy types: E&O, CGL, Cyber, D&O
Compliance Gaps to Address
No AI governance policy for underwriting tools
Lack of human oversight in AI-driven coverage recommendations
No documentation of AI vendor risk assessments
Unaware of AI exclusion endorsements in own E&O coverage
No process to check placed policies for AI exclusion endorsements before binding
No E&O review of the brokerage's own AI tools against NAIC Model Bulletin expectations
Other Industries in This State
This Industry in Other States
Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. AI regulations and insurance policy terms change frequently. Consult with a qualified attorney or insurance professional for advice specific to your situation. Gridex makes no warranties regarding the accuracy or completeness of this information.