Determine whether TRAIGA applies to the company
Severity MediumTex. Bus. & Com. Code § 551.002
The subtitle applies to a person who promotes, advertises or conducts business in Texas, produces a product or service used by Texas residents, or develops or deploys an AI system in Texas. Consumer is limited to a Texas resident acting in an individual or household context and excludes individuals acting in a commercial or employment context. The scope determination should be documented, since the product-used-by-residents limb is very broad and can be triggered merely by distribution through a U.S. app store.
- Applies when
- Any Chinese company distributing AI products into the U.S. market.
- Applies from: 2026-01-01
- Evidence to retain
- · Scope determination memo
- · Evidence of Texas user distribution and business activity
- · Inventory of product distribution channels
Estimated first-time effort: 1–4 person-days (estimate, not a commitment)
Prohibition on developing or deploying AI to manipulate human behaviour
Severity CriticalTex. Bus. & Com. Code § 552.052
A person may not develop or deploy an AI system in a manner that intentionally aims to incite or encourage a person to commit physical self-harm including suicide, to harm another person, or to engage in criminal activity. This has direct product-design consequences for consumer-facing conversational, companion and content-generation products and must be reflected in system prompts, safety guardrails and red-teaming.
- Applies when
- Chinese companies offering conversational AI, companion AI, roleplay or content generation products in the United States.
- Applies from: 2026-01-01
- Evidence to retain
- · Safety guardrail design documents and policy rule sets
- · Red-team reports and refusal-rate data for self-harm, violence and criminal-facilitation prompts
- · Description of minor-protection and crisis-referral mechanisms
- · Safety incident handling and post-incident review records
Estimated first-time effort: 10–30 person-days (estimate, not a commitment)
Prohibition on developing or deploying AI with intent to discriminate
Severity HighTex. Bus. & Com. Code § 552.056
A person may not develop or deploy an AI system with the intent to unlawfully discriminate against a protected class in violation of state or federal law. The statute is explicit that disparate impact alone is not sufficient to demonstrate intent to discriminate. Protected class covers characteristics protected by state or federal civil rights laws, including race, colour, national origin, sex, age, religion and disability. Insurance entities providing insurance services under applicable insurance statutes are excluded, and a federally insured financial institution that complies with all federal and state banking laws is considered in compliance.
- Applies when
- Chinese companies offering AI decision products for employment, credit, insurance, housing or education in the United States.
- Applies from: 2026-01-01
- Evidence to retain
- · Product design intent and permitted-use documentation
- · Fairness testing and bias mitigation records
- · Review records covering use of protected-class attributes and proxy variables
- · Internal compliance approvals and the prohibited-use list
Estimated first-time effort: 8–20 person-days (estimate, not a commitment)
Prohibition on AI for unlawful sexual content and child sexualization
Severity CriticalTex. Bus. & Com. Code § 552.057
A person may not develop or distribute an AI system with the sole intent of producing, assisting in producing, or distributing visual material in violation of Texas Penal Code section 43.26 or deep fake videos or images in violation of section 21.165, and may not intentionally develop or distribute an AI system that engages in text-based conversations simulating or describing sexual conduct as defined in section 43.25 while impersonating or imitating a child under 18 years of age.
- Applies when
- Chinese companies offering image or video generation, virtual character or companion chat products.
- Applies from: 2026-01-01
- Evidence to retain
- · Content safety policy and age-related persona restriction rules
- · Blocking test reports for minor-related prompts and personas
- · Output moderation and complaint-handling workflow
- · Review records for third-party personas or plugins
Estimated first-time effort: 8–25 person-days (estimate, not a commitment)
Prepare evidence for the 60-day cure period and statutory defences
Severity HighTex. Bus. & Com. Code §§ 552.101, 552.104, 552.105
The Texas Attorney General has exclusive enforcement authority and must first give written notice. No action may be brought before the 60th day after notice, or at all if within that period the violator cures and provides a written statement that it cured, supplied supporting documentation showing how, and made any necessary changes to internal policies to reasonably prevent further violations. There is a rebuttable presumption that a person used reasonable care. A defendant is not liable where it discovered the violation through developer or deployer feedback, adversarial or red-team testing, following state agency guidelines, or an internal review process while substantially complying with the latest NIST Artificial Intelligence Risk Management Framework Generative Artificial Intelligence Profile or another recognized framework. No civil penalty action may be brought for an AI system that has not been deployed.
- Applies when
- All companies within the scope of TRAIGA.
- Deadline: Cure and submit the written statement within 60 days of the Attorney General notice
- Applies from: 2026-01-01
- Evidence to retain
- · Evidence of substantial compliance with the NIST Generative AI Profile, including a mapping table and execution records
- · Red-team and adversarial testing plans and reports
- · Internal review process documentation and findings register
- · Record of any Attorney General notice, the cure actions and the draft written statement
Estimated first-time effort: 10–30 person-days (estimate, not a commitment)