In a recent LawFlash, a team of Morgan Lewis lawyers wrote on the enactment of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), which will enter into force on January 1, 2026. This legislation marks a significant step in regulating artificial intelligence (AI) technologies within the state of Texas. TRAIGA is broad in scope: applicable to any individual or entity, including government agencies, developing AI systems in Texas, offering a product or service used by Texas residents, or promoting, advertising, or conducting business in the state.
TRAIGA prohibits the development and use of AI for a variety of purposes, including inciting or encouraging harmful or criminal behavior, infringement of constitutional rights, unlawful discrimination against a protected class, and distributing sexually explicit content or unlawful deep fake videos or images.
Further, the act requires disclosure of AI usage where AI is used to interact with “consumers”; for example, consumers must be notified in a clear, conspicuous, and easily understood manner that they are interacting with an AI system before or during the interaction.
TRAIGA introduces a regulatory sandbox designed to encourage innovation while ensuring compliance. This sandbox allows entities to test AI technologies under regulatory supervision, providing a controlled environment to assess potential risks and benefits for up to 36 months. The Texas attorney general is empowered to enforce TRAIGA by levying civil penalties where applicable.
Together with our colleagues on the eData and cybersecurity teams, Tech & Sourcing @ Morgan Lewis will continue to monitor any additional guidance regarding compliance with TRAIGA and its potential impact.