Artificial intelligence is no longer experimental. It now plays a role in hiring, lending, insurance underwriting, medical screening, education, housing, and even courtroom evidence. As AI becomes more powerful, lawmakers have begun to regulate how it can be used.
In Texas, that effort has taken shape through the Texas Responsible Artificial Intelligence Governance Act (TRAIGA)—a growing framework designed to ensure that AI systems are developed and deployed in a lawful, transparent, and nondiscriminatory manner.
This article explains what TRAIGA is, who it affects, and what legal risks businesses and individuals should understand.
What Is the Texas Responsible Artificial Intelligence Governance Act (TRAIGA)?
The Texas Responsible Artificial Intelligence Governance Act (“TRAIGA”) is a legislative framework designed to regulate the use of artificial intelligence systems that affect people’s legal rights, financial opportunities, and personal freedoms.
The primary goals of TRAIGA are to:
- Prevent discriminatory AI decision-making
- Increase transparency in automated systems
- Protect consumer privacy
- Reduce wrongful reliance on AI
- Establish accountability for AI developers and users
Rather than banning artificial intelligence, TRAIGA focuses on responsible use—especially in high-risk areas.
What Types of AI Systems Are Regulated?
TRAIGA focuses primarily on “high-risk” AI systems, meaning systems that materially affect important human outcomes.
These include AI used for:
1. Employment and Hiring
- Resume screening
- Applicant ranking
- Promotion decisions
- Termination recommendations
2. Credit, Lending, and Insurance
- Loan approvals
- Interest rate determinations
- Insurance underwriting
- Risk profiling
3. Housing and Real Estate
- Tenant screening
- Mortgage approvals
- Rental eligibility scoring
4. Healthcare and Benefits
- Medical eligibility
- Treatment prioritization
- Disability determinations
5. Legal and Judicial Contexts
- Evidence analysis
- Risk assessments
- Sentencing recommendations
- Surveillance tools
When AI affects access to housing, jobs, money, or liberty, TRAIGA scrutiny applies.
Core Legal Requirements Under TRAIGA
1. Duty to Avoid Discrimination
One of TRAIGA’s central provisions is preventing unlawful discrimination through AI.
AI systems may not unlawfully discriminate based on:
- Race
- Sex
- Age
- Disability
- Religion
- National origin
- Other protected classes
This mirrors protections under:
- Texas Labor Code Chapter 21
- Title VII of the Civil Rights Act
- Fair Housing Act
- Equal Credit Opportunity Act
If an algorithm produces biased outcomes, the company using it—not just the software developer—may face liability.
2. Transparency and Disclosure Requirements
TRAIGA requires certain disclosures when automated systems are used.
In many contexts, individuals must be informed when:
- An AI system is making decisions about them
- Automated scoring affects eligibility
- Human review is limited
Failure to disclose automated decision-making may expose businesses to deceptive practices claims under:
- Texas Business & Commerce Code § 17.46 (DTPA)
3. Risk Assessment and Testing Obligations
Organizations deploying covered AI systems must conduct ongoing risk assessments.
These include:
- Bias testing
- Accuracy validation
- Data quality audits
- Error-rate analysis
- Model documentation
Companies must be able to demonstrate that they took reasonable steps to prevent foreseeable harm.
4. Human Oversight Requirements
TRAIGA discourages “fully automated” decision systems in sensitive areas.
Instead, it emphasizes:
- Meaningful human review
- Override authority
- Appeal mechanisms
- Error correction procedures
Blind reliance on AI outputs may be considered negligent or reckless under Texas tort law.
5. Data Governance and Privacy Protections
TRAIGA works alongside existing privacy laws, including:
- Texas Data Privacy and Security Act (TDPSA)
- Texas Identity Theft Enforcement Act
Covered entities must:
- Secure training data
- Minimize unnecessary data use
- Protect biometric and behavioral data
- Prevent unauthorized profiling
Improper data handling can lead to regulatory enforcement and civil liability.
Who Must Comply With TRAIGA?
TRAIGA affects a wide range of entities, including:
- Employers
- Banks and lenders
- Insurance companies
- Property managers
- Tech startups
- Healthcare providers
- Educational institutions
- Data analytics firms
Even small businesses may fall under TRAIGA if they use third-party AI platforms for decision-making.
Importantly, outsourcing AI does not eliminate responsibility.
If you rely on AI, you may still be legally accountable.
Enforcement and Penalties
TRAIGA is primarily enforced by:
- The Texas Attorney General
- State regulatory agencies
- Private civil lawsuits
Possible consequences include:
1. Civil Penalties
Fines for statutory violations
2. Injunctions
Court orders prohibiting continued AI use
3. Private Lawsuits
Claims for:
- Discrimination
- Negligence
- Fraud
- DTPA violations
- Civil rights violations
4. Evidentiary Sanctions
Courts may exclude improperly generated AI evidence
How TRAIGA Affects Litigation and Evidence
One of the most significant impacts of TRAIGA is in civil litigation.
AI-generated evidence is increasingly used in:
- Surveillance footage
- Audio recordings
- Document analysis
- Image enhancement
- Risk modeling
Under TRAIGA principles, courts may examine:
- Data sources
- Training methods
- Bias controls
- Error margins
- Human verification
Unreliable AI evidence may be excluded under:
- Texas Rules of Evidence 401
- Rule 403
- Rule 702
This is especially relevant in cases involving deepfakes and manipulated media.
Practical Compliance Tips for Texas Businesses
If your organization uses AI, consider the following steps:
1. Inventory Your AI Tools
Identify every system that uses automated decision-making.
2. Demand Vendor Transparency
Require documentation from AI providers.
3. Implement Human Review
Do not rely solely on algorithms.
4. Maintain Audit Trails
Keep records of model updates and testing.
5. Update Policies and Training
Ensure staff understand AI limitations.
6. Consult Legal Counsel
Early compliance costs far less than litigation.
What This Means for Texas Consumers
TRAIGA strengthens consumer rights by providing:
- Greater transparency
- More appeal options
- Protection from hidden bias
- Accountability for automated harm
If you believe AI has unfairly affected your employment, credit, housing, or benefits, you may have legal remedies.
Conclusion: AI Power Requires Legal Responsibility
Artificial intelligence is reshaping nearly every industry. But efficiency cannot come at the expense of fairness, transparency, and due process.
The Texas Responsible Artificial Intelligence Governance Act reflects a growing recognition that:
When machines influence human lives, humans must remain legally accountable.
Businesses that ignore this reality risk regulatory enforcement, lawsuits, and reputational harm.
If you use AI in your operations—or believe AI has harmed you—consulting a Texas attorney early can help protect your rights.
Need Legal Guidance on AI Compliance or AI-Related Disputes?
If your business uses automated systems, or if you believe an AI-based decision harmed you, legal advice now can prevent major problems later.
For questions about AI governance, litigation, or compliance under Texas law, contact an experienced Texas attorney.
At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.
