Texas Governance Signs Responsible AI Governance Act

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Key Points of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA)

Applicability and Key Obligations:
- TRAIGA applies broadly to any “person or entity” conducting business in Texas, producing products or services used by Texas residents, or developing and deploying AI systems in Texas.
- It outlines significant requirements for organizations, especially those operating outside of Texas but affecting Texas stakeholders.
Definition of Artificial Intelligence System:
- An “AI system” under TRAIGA is any apparatus that generates content, decisions, predictions, or recommendations impacting physical or virtual environments.
Prohibited Uses of AI:
- TRAIGA bans AI systems used for illegal purposes such as discrimination, manipulation of human behavior, infringement of constitutional rights, and distribution of explicit content or child sexual abuse material.
- Compliance requires not just absence of adverse outcomes but also a lack of unlawful discriminatory purpose.
Enforcement Authority and Penalties:
- Enforcement is handled exclusively by the Texas Attorney General with no private right of action.
- Penalties range from $10,000 to $200,000 per violation, with a 60-day cure period to avoid penalties.
- Employers can have affirmative defenses if they internally detect and remediate issues through appropriate means.
Practical Guidance for Employers:
- Inventory and classify all AI systems.
- Conduct internal risk assessments on AI tools to identify potential biases and compliance with protected classes.
- Document the intent and oversight of AI deployments to provide evidence of non-discriminatory use.
- Adopt compliance frameworks aligned with national standards and ensure ongoing training and monitoring of AI tools.
- Avoid reliance on vendor claims alone, ensuring direct compliance with TRAIGA and federal anti-discrimination laws.
- Retain human oversight for AI outcomes to mitigate risks of discrimination.
- Engage experienced legal counsel to navigate the complexities of compliance under state and federal law.