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State/Terr | AI Scope | Relevant Law | Law Link | Effective Date | Key Requirements | Enforcements & Penalties |
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Texas | AI In Government | Act Relating to the Regulation and Use of AI by Governmental Entities | Chapter 2054, Government Code, Subchapter S | September 1, 2025 | • Requires Texas state agencies to inventory their AI systems and conduct a review of the deployment and use of heightened scrutiny AI systems. • Requires the creation for the state-wide establishment of an AI system code of ethics for use by state agencies and local governments that procure, develop, deploy, or use AI systems, which shall be adopted by the state agencies and local governments. • Requires the development of minimum risk management and governance standards for the development, procurement, deployment, and use of heightened scrutiny AI systems by a state agency or local government. • Requires state agencies to conduct assessments when deploying or using a heightened scrutiny AI system. • Requires state agencies to clearly disclose to an individual interacting with a public-facing AI system that they are interacting with an AI system, unless a reasonable person would know they are interacting with an AI system. • Requires state agencies to provide certain standardized notices of AI systems use that is public-facing or that is a controlling factor in a consequential decision. | The attorney general can enjoin a violation of the law and/or void a contract with a vendor causing such a violation. |
Texas | AI in Social Media | Unlawful Production or Distribution of Certain Sexually Explicit Material | HB 441 | September 1, 2025 | • Establishes liability for owners of internet websites, artificial intelligence applications, and payment processors involved in artificial sexual material under certain conditions, and requires persons who own an Internet website or application to make available on the website or application an easily accessible system that allows a person to submit a request for the removal of such artificial material. | Establish the criminal penalties; Class B or Class A misdemeanor or a third degree felony. |
Texas | AI Intimate Images | Unlawful Production or Distribution of Certain Sexually Explicit Material | HB 441 | September 1, 2025 | • Expands what constitutes an unlawful production or distribution of certain sexually explicit visual material to include media that appears to depict a person with certain forms of intimate parts or performing certain actions without the person's consent. • Establishes liability for owners of internet websites, artificial intelligence applications, and payment processors involved in such artificial sexual material under certain conditions, and requires persons who own an Internet website or application to make available on the website or application an easily accessible system that allows a person to submit a request for the removal of such artificial material. | Establish the criminal penalties; Class B or Class A misdemeanor or a third degree felony. |
Texas | AI CSAM | Amendment to the CSAM Statutes | SB 1621 | September 1, 2025 | • Expands the offenses of possession of child pornography, electronic transmission of certain visual material depicting a minor, and possession or promotion of lewd visual material depicting a child to include AI generated images. | Felony offense |
Texas | AI CSAM | Visual Material Appearing to Depict a Child | SB 20 | September 1, 2025 | • Creates a felony offense of possessing, accessing, or promoting obscene visual material of a child, regardless of whether the image is an actual child or created using artificial intelligence, or uses an image of a child with intent to train artificial intelligence to produce material constituting child pornography. | Felony offense |
Texas | AI Intimate Images | AI Sexual Material Harmful to Minors | HB 581 | September 1, 2025 | • Commercial entities that operate a website with a publicly accessible tool for creating artificial sexual material harmful to minors, or otherwise makes publicly available an application for creating such material, must use reasonable age verification methods to verify an individual is 18 years of age or older. • Commercial entities providing such a tool or application must also ensure that an individual used as a source for the material is 18 years of age or older and has consented to the use of the individual's face and body as a source for the material. | Civil penalty of up to $10,000 per day it operates in violation of the age verification requirements or per instance of certain other violations, and up to $250,000 if a minor accesses sexual material because of a violation. |
Texas | AI in Insurance | Use of Automated Decision System for Adverse Determinations | SB 815 | September 1, 2025 | • Amends the Insurance Code to prohibit a utilization review agent from using an automated decision system, including certain AI systems, to make, wholly or partly, an adverse determination (i.e., a determination by a utilization review agent that health care services provided or proposed to be provided to a patient are not medically necessary or appropriate or are experimental or investigational). | Sanctions, cease and desist orders, and administrative penalties under the Insurance Code. |
Texas | AI Healthcare | Artificial Intelligence in Electronic Health Record | SB 1188 | September 1, 2025 | • Grants health care practitioners the ability to use artificial intelligence for diagnostic purposes, including using artificial intelligence for recommendations on a diagnosis or course of treatment based on a patient’s medical record, if given conditions are met. • Provides a health care practitioner using artificial intelligence for diagnostic purposes must disclose the practitioner ’s use of that technology to the practitioner’s patients. | Injunctive relief and civil penalties of up to $5,000 for each violation that is committed negligently in a single year, $25,000 for each violation that is committed knowingly or intentionally in a single year, and $250,000 for each violation in which the covered entity knowingly or intentionally used protected health information for financial gain. |
Texas | AI Deepfakes | Financial Abuse Using Artificially Generated Media or Phishing | SB 2373 | September 1, 2025 | • Prohibits any person from intentionally or knowingly disseminating artificially generated media or a phishing communication for the purpose of financial exploitation. • Provides that a person commits an offense if the person knowingly engages in financial abuse through the use of artificially generated media disseminated to another person or by deceiving or manipulating another person into providing personal, financial, or identifying information through e-mail, electronic communication, or other digital means. | • Actual damages, damages for mental anguish, and the defendant's profits, as well as court costs and reasonable attorney's fees. • Civil penalty not to exceed $1,000 per day the media or communication is disseminated. • Criminal penalties and imprisonment can also apply. |
Texas | Comprehensive AI | Texas Responsible Artificial Intelligence Governance Act (TRAIGA) | HB 149 | January 1, 2026 | • Clarifies when Texas's biometric privacy law applies to AI training, development, and deployment. • Requires a governmental agency that makes available an AI system intended to interact with consumers to disclose to each consumer, before or at the time of interaction, that the consumer is interacting with an AI system. • Prohibits any governmental entity from using or deploying an AI social scoring system in manner that could result in detrimental or unfavorable treatment or the infringement of anyone's rights. • Prohibits any government entity from developing or deploying an AI system for the purpose of uniquely identifying an individual using biometric data or the gathering of images / media from the Internet or other publicly available source without consent, if doing so would infringe on an individual's rights. • Prohibits any person from developing or deploying an AI system (i) in a manner that intentionally aims to manipulate human behavior in a harmful way, (ii) with the sole intent to infringe or impair an individual's rights, (iii) with the intent to unlawfully discriminate, or (iv) with the sole intent of producing, assisting or aiding in producing, or distributing CSAM. | Subject to right to cure, up to $12,000 for curable violations, up to $200,000 for uncurable violations, and an additional $2,000 to $40,000 per day for continued violations. |
Texas | AI CSAM | Amendment of Texas CSAM Laws | HB 2700 | September 1, 2023 | • Expands the scope of existing child pornography statutes to include matter that is digitally altered or generated by the use of AI. | Existing criminal penalties apply. |
Texas | AI Intimate Images | Unlawful Distribution of Sexually Explicit Videos | SB 1361 | September 1, 2023 | • Makes it a criminal offense to distribute deepfakes depicting a person with intimate parts exposed or engaged in sexual conduct without that person’s consent. | Class A misdemeanor. |
Texas | Automated Decision-Making | Texas Data Privacy and Security Act | Tex. Bus & Com. Code § 541.051(b)(5)(C) | July 1, 2024 | • Provides consumers the right to opt-out of any form of solely automated processing performed on personal data to evaluate, analyze, or predict personal aspects related to an identified or identifiable natural person’s economic situation, health, personal preferences, interests, reliability, behavior, location, or movements in furtherance of decisions that produce legal or similarly significant effects concerning the consumer (i.e., the provision or denial of financial and lending services, housing, insurance or health care services, education enrollment, employment opportunities, criminal justice, or access to basic necessities like food and water). • Requires a data protection assessment of each processing activity involving such automated processing of personal data. Other obligations and restrictions may apply depending on the type of data processed. | Up to $7,500 per violation. |
Which states have AI laws in effect today? This tracker summarizes key AI laws that may impact your business.
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