Texas Responsible AI Governance Act

Applies To

Overview

The Texas Responsible AI Governance Act was signed into law on June 22, 2025. During the legislative process, earlier and broader drafts that would have imposed significant obligations on private sector entities were substantially scaled back. In its final form, the Act is directed primarily at Texas state agencies and government bodies that develop, procure, or deploy AI systems. Key provisions address transparency to the public, internal governance structures, and risk assessment processes for government AI use. The Act does not replicate the comprehensive private sector AI liability and risk-tiering frameworks seen in some comparable state proposals, such as Colorado SB 205. Enforcement falls within the existing oversight mechanisms applicable to Texas state agencies. Because the private sector provisions were removed, most commercial enterprises operating solely in the private market face limited direct compliance obligations under this law.

Key Requirements

• •Texas state agencies must conduct risk assessments before deploying AI systems in government operations.
• •Government entities must implement transparency measures informing the public when AI is used in consequential decisions affecting residents.
• •State agencies are required to establish internal governance structures or designate responsible personnel for AI oversight.
• •Agencies must document AI procurement and deployment decisions, including vendor and system information.
• •The Act imposes ongoing review obligations to ensure AI systems in government use remain accurate and do not produce discriminatory outcomes.
• •Private sector organizations face no broad compliance mandates under the enacted final version of the law.

What Your Organization Must Do

• →Assess whether your organization contracts with Texas state agencies, as vendor agreements may need to reflect agency-side compliance obligations.
• →Review AI products and services sold to Texas government customers to confirm they can support agency transparency, documentation, and risk assessment requirements.
• →Update public sector sales and procurement contract templates to address state agency obligations that may flow downstream to AI vendors and deployers (organizations that use AI systems).
• →Monitor for implementing regulations or agency-level guidance that could introduce additional requirements for government contractors.
• →If your organization is a Texas state agency or operates AI systems on behalf of one, designate a responsible AI officer or point of contact. Establish a risk assessment process before deployment.
• →Track any future legislative sessions in Texas for reintroduction of private sector AI obligations, given the history of broader proposals in this cycle.