Texas Gov. Greg Abbott signed a new bill last month regulating the use of AI in the lonely star states.
Texas’ Responsible AI Governance Act (Traiga 2.0) is supported by Republican state legislator Giovanni Capriglione.
In some respects, Texas law reflects other prominent AI laws in its scope, including the Colorado Artificial Intelligence Act, which bans algorithm identification and EU AI laws. But that is outside the scope of those other measures.
John Rood, founder and CEO of Proceptual, who works at the intersection of HR and AI, told HR Brew that he was surprised he had learned more about the law, emerging from Texas.
“The early drafts of Texas regulations are much more stringent in Colorado and much closer to the European Union AI Act, and these protections are practically watered down,” Rood said.
What HR should know. Texas law prohibits businesses from developing or deploying AI systems with the aim of illegally discriminating against protected classes under federal or state law. It should be noted that demonstrating the “differential effects” of technology does not meet the requirements for violations under the law, and that “intentional and substantive modifications” are also necessary.
Additionally, this scale creates sandbox programs that allow developers to create and test AI systems in a more secure environment before they are published. On a broader regulatory scale, this aspect reflects AI enablement strategies that some companies have determined to help test and deploy AI systems in the workplace.
Although the law does not allow individual claimants to file lawsuits, the Texas Attorney General allows them to take action against their employers and collects sudden penalties, such as:
A fine of between $10,000 and $12,000 for a “curable” violation after a 60-day period of violation after being notified by the AG’s office. To continue the violation, it will be $40,000 per day.
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Root said the new regulatory framework means that organizations need to “start implementing fairly robust systems of AI governance, and that governance systems must comply with recognized standards fairly closely.
Rood pointed out the National Institute of Standards and Technology (NIST) AI Risk Management Framework as two guide posts for the IS0 42001, a framework developed by the International Standards Agency, and the National Institute of Standards and Technology (NIST) AI Risk Management Framework as two guide posts for developing AI governance strategies and enhanced patchwork compliance.
Texas laws are very similar to Colorado, pointing to the NIST framework as a positive defense against violations of the law.
“All of these regulations we see have a clear off-ramp for businesses, which is just doing AI governance,” says Rood. “It’s relatively clear what that series of activities are like.
The Texas AI Act came into effect on January 1, 2026. Rood suggested that employers doing business in Lone Star State should begin developing risk frameworks in line with NIST or ISO.
“HR leaders now deal with a lot of very complex regulations and multiple jurisdictions, so they are initially facing monumental tasks,” Rood said.
