Detailed overview
Texas regulates AI through the Texas Responsible Artificial Intelligence Governance Act, HB 149. The Act takes effect on 1 January 2026 and applies to persons that promote, advertise or conduct business in Texas, produce products or services used by Texas residents, or develop or deploy AI systems in Texas.
The Act defines an AI system as a machine-based system that infers from inputs how to generate outputs, including content, decisions, predictions or recommendations, that can influence physical or virtual environments. A developer is a person who develops an AI system offered, sold, leased, given or otherwise provided in Texas. A deployer is a person who deploys an AI system for use in Texas.
Texas imposes disclosure duties in specific contexts. A governmental entity that makes available an AI system intended to interact with consumers must disclose, before or at the time of interaction, that the consumer is interacting with AI. The disclosure must be clear and conspicuous, written in plain language and must not use a dark pattern. If AI is used in relation to healthcare services or treatment, the provider must disclose the AI use to the recipient of the service or treatment or to the recipient's personal representative.
The Act prohibits certain AI uses. A person may not develop or deploy AI in a manner that intentionally aims to incite or encourage physical self-harm, harm to another person or criminal activity. Government entities may not use AI for certain social-scoring systems. The Act also contains restrictions on biometric-data capture, constitutional-rights interference and intentional unlawful discrimination against protected classes. A disparate impact alone is not sufficient to show intent to discriminate under the Texas AI Act.
Texas also creates an AI regulatory sandbox. A sandbox is a controlled testing environment for AI systems. A participant must obtain approval before testing an AI system and must provide information about the intended use, benefits, consumer, privacy and public-safety impacts, mitigation plans and compliance with applicable federal AI laws and regulations. Sandbox participation may last up to 36 months, with possible extension for good cause, but the core duties and prohibitions in the AI protection chapter may not be waived.
The Act establishes the Texas Artificial Intelligence Council, composed of seven public members appointed by the Governor, Lieutenant Governor and Speaker of the House. The Council may issue reports on AI system compliance, use of AI in the state and related regulatory matters.
Enforcement is led by the Texas Attorney General. Before bringing an action, the Attorney General must generally provide written notice and a 60-day opportunity to cure if the violation can be cured. Civil penalties are USD 10,000 to USD 12,000 for curable violations not cured, USD 80,000 to USD 200,000 for uncurable violations, and USD 2,000 to USD 40,000 per day for continuing violations. The Attorney General may also seek injunctions, attorney's fees, court costs and investigative expenses. State agencies may impose additional sanctions, including licence suspension, probation, revocation or a monetary penalty up to USD 100,000 for certain regulated persons.
Practical requirements & details
Sourced from the Texas Responsible Artificial Intelligence Governance Act (HB 149), effective 1 January 2026.
Scope & defined terms
- Applies to persons that promote, advertise or conduct business in Texas, produce products or services used by Texas residents, or develop or deploy AI systems in Texas.
- AI system — a machine-based system that infers from inputs how to generate outputs (content, decisions, predictions, recommendations) that can influence physical or virtual environments.
- Developer — person who develops an AI system offered, sold, leased, given or otherwise provided in Texas.
- Deployer — person who deploys an AI system for use in Texas.
Disclosure duties
- Government AI interacting with consumers — disclose before or at the time of interaction. Must be clear, conspicuous, in plain language and not use a dark pattern.
- Healthcare AI — disclose AI use to the recipient of the service/treatment or their personal representative.
Prohibitions
- No AI intentionally aiming to incite or encourage physical self-harm, harm to others or criminal activity.
- Government entities may not use AI for certain social-scoring systems.
- Restrictions on biometric-data capture, constitutional-rights interference and intentional unlawful discrimination against protected classes.
- Disparate impact alone is not sufficient to show intent to discriminate.
AI regulatory sandbox
- Controlled testing environment for AI systems.
- Participants must obtain approval before testing and supply information on intended use, benefits, consumer, privacy and public-safety impacts, mitigation and federal-law compliance.
- Up to 36 months, extendable for good cause; core AI duties and prohibitions may not be waived.
Texas AI Council
- Seven public members appointed by the Governor, Lieutenant Governor and Speaker of the House.
- May issue reports on AI compliance, AI use in the state and related regulatory matters.
Penalties
- Enforcement by the Texas Attorney General — generally with 60-day cure period if curable.
- USD 10,000–12,000 for curable violations not cured.
- USD 80,000–200,000 for uncurable violations.
- USD 2,000–40,000 per day for continuing violations.
- Injunctions, attorney's fees, court costs and investigative expenses also available.
- State agencies may impose licence suspension, probation, revocation or monetary penalty up to USD 100,000 for certain regulated persons.
Related entries
See also the federal-level entry for the United States, which covers the broader US AI regulatory framework (executive orders, NIST AI Risk Management Framework, sectoral regulators, and US-wide federal initiatives).