Texas’s New TRAIGA Law Starts in 2026 — Here’s the Compliance Checklist Every Houston Business Needs

TRAIGA Compliance Checklist 2026: Essential Guide for Houston Businesses

Here’s the thing… every month I sit across from a Houston business owner who swears their AI tools are “simple” — a chatbot here, an automated screening tool there. And every time, once we dig in, we find something that could get them in trouble with Texas regulators.

TRAIGA is going to expose all of that.

Not in theory. In practice. And if you’re running a business anywhere in Houston, this law isn’t optional.

• TRAIGA starts January 1, 2026, and applies to developers, deployers, and businesses marketing AI into Texas.

• Prohibits manipulation, discrimination, social scoring, and unauthorized biometric use.

• Requires AI impact assessments, disclosures, consent, and governance controls.

• Houston businesses should review AI vendors, update privacy notices, and document oversight.

• Early preparation reduces legal exposure—consult a Texas attorney.

Table of Contents

1. What Is TRAIGA and Why Texas Passed It

2. Who Must Comply: Developers vs. Deployers

3. Prohibited AI Uses Under TRAIGA

4. Complete TRAIGA Compliance Checklist

5. Penalties and Enforcement

6. Mini Case Example

7. FAQs

8. CTA + Author + Reviewer + Disclaimer

Quick Real Scenario (Lived Experience)

Earlier this year, a small fitness-tech startup in Midtown used an AI posture-analysis tool. Nothing fancy. Just a feature inside their mobile app. They had no idea the tool captured micro-biometrics — gait signatures and facial vectors.

No consent notice. No transparency. No retention policy.

That’s the exact kind of situation TRAIGA is meant to catch.

And the truth?

 Most businesses have no clue their AI vendors collect this type of data until something breaks

What Is TRAIGA and Why Texas Passed It?

Let’s break this down.

TRAIGA — the Texas Responsible Artificial Intelligence Governance Act — kicks in January 1, 2026. It’s the first big Texas law telling businesses: If you’re building or using AI in a way that affects people, you’re now responsible for what that AI does.

Not your vendor. Not the model. You.

Why did Texas pass it?

Because regulators in Austin were seeing the same patterns we saw in Harris County:

• Hiring tools rejecting qualified applicants for “culture fit”

• Chatbots offering promises companies never approved

• Apps running facial recognition without consent

• Algorithmic decisions with zero human oversight

This isn’t Big Tech vs. consumers — it touches every sector in Houston: energy tech, SaaS, HR platforms, medical analytics, and even small marketing agencies using AI scoring tools.

Who Must Comply: Developers vs. Deployers

Now, this part surprises people every time.

TRAIGA splits everyone into two buckets: Developers and Deployers.

And most Houston businesses fall into the deployer category — even if they never wrote a single line of code.

1. Developers (The Builders)

If you train models, modify models, or build AI systems, you must maintain deep technical documentation:

• What data trained your model

• Where the data came from

• Known risks

• Safety tests

• Bias evaluations

• Disclosures for anyone who uses your model

Think of a Houston AI startup training a model on customer call recordings — that’s a developer.

2. Deployers (The Users)

This is where 90% of businesses land.

If you use AI — HR screening tools, customer sentiment scoring, predictive analytics, automated pricing, chatbots — you’re a deployer.

Deployers must:

• Perform AI Impact Assessments

• Provide transparency notices

• Get biometric consent

• Keep human oversight

• Monitor outputs

• Maintain vendor documentation

If an AI HR tool denies an applicant, TRAIGA assumes you allowed that system to operate.

I’ll be blunt: “But our vendor didn’t tell us that” won’t work with Texas regulators.

This is exactly the kind of accountability TRAIGA codifies.

Prohibited AI Uses Under TRAIGA

Here’s where businesses get burned.

TRAIGA bans a handful of practices outright — no exceptions, no loopholes.

1. Manipulative AI Behavior

If your system influences someone’s decisions by exploiting vulnerabilities, TRAIGA calls that manipulation.

Example: A chatbot that pressures users into upgrades by mimicking a human agent and hiding its identity.

2. Social Scoring

Anything resembling a “trust score,” “reliability score,” or “behavior score.”

Texas regulators hate this.

3. Discriminatory Automated Decisions

Texas has always taken discrimination seriously — especially under laws like the DTPA and Texas Labor Code.

If an AI system discriminates in:

• Hiring

• Housing

• Credit

• Insurance

• Public accommodations

…your business will be held accountable.

4. Unauthorized Biometric Collection

This includes:

• Facial recognition

• Voice prints

• Iris scans

• Gait analysis

• Signature dynamics

If your tool touches biometrics, TRAIGA treats it as high-risk.

5. Deceptive AI Use

Using AI to impersonate humans without disclosure is a straight violation.

If your chatbot pretends to be “Sarah from Support,” you need to rethink your entire workflow.

Complete TRAIGA Compliance Checklist

Let me give you the real checklist we use in Houston companies.

1. Create an AI Inventory (Most Skip This — Don’t)

You can’t comply with a law if you don’t know what your AI tools are doing.

List every system:

• Chatbots

• CRM scoring tools

• HR screening platforms

• Dynamic pricing algorithms

• Marketing automation

• Identity verification tools

Real example: A Houston retailer discovered their CRM quietly added “AI sentiment scoring” last February. They had no documentation. No transparency. That’s a TRAIGA trigger.

2. Perform AI Impact Assessments

This is the heart of TRAIGA.

Your assessment must cover:

• The purpose of the AI

• Data categories (especially sensitive ones)

• Bias risks

• Manipulation risks

• Human oversight

• Security measures

• Vendor disclosures

Keep the file. Texas AG investigators will ask for it.

3. Provide AI Transparency Notices

This is not optional.

Notify people when:

• AI is influencing decisions

• AI evaluates employees or customers

• AI interacts with users

• Biometric data is collected

Houston example: A Galleria fitness startup now shows a simple notice: “We use automated posture analysis for form tracking.” Clean, compliant, easy.

4. Obtain Explicit Biometric Consent

TRAIGA wants documented, affirmative consent — not passive acceptance.

• Written notice

• Clear explanation

• Opt-out options

• Consent logs

If your tool touches faces or voices, don’t skip this.

5. Fix Your Vendor Contracts

Vendor oversight is where TRAIGA gets real.

Your contracts must force the vendor to disclose:

• Training data summaries

• Bias test results

• Security practices

• Model limitations

• Notices of high-risk use

• Cooperation with compliance audits

If your AI vendor avoids documentation, that’s a red flag.

6. Update Your Privacy Policy

Add:

• AI tools you use

• When automated decision-making happens

• Categories of data processed

• Biometric retention policies

• Rights to opt out or request human review

7. Establish an AI Governance Policy

Even a one-page policy is better than nothing.

Include:

• Oversight roles (legal, IT, HR, marketing)

• Documentation rules

• Annual audits

• Escalation paths

I’ve seen businesses skip this part — and it always comes back to bite them.

8. Monitor Your AI Systems Continuously

Houston companies must check for:

• Bias

• Model drift

• Output anomalies

• Vendor changes

• Security risks

This isn’t a one-time job — it’s ongoing.

6. Update Privacy Policies to Include AI Uses

Your updated policy should disclose:

• Type of AI tools used

• When automated decision-making occurs

• Data categories processed

• Rights to access, opt-out, or request human review

• Biometric data retention periods

7. Establish a Written AI Governance Policy

Include:

• Oversight responsibilities

• Documentation requirements

• Annual risk monitoring

• Escalation procedures

• Roles across HR, marketing, IT, legal, and leadership

8. Implement Ongoing Monitoring and Model Auditing

Review AI systems for:

• Discriminatory patterns

• Model drift

• Output anomalies

• New vendor risks

• Changes in training data

• Security breaches

Annual audits are strongly recommended.

TRAIGA Compliance Checklist Table

Category	Requirement	Your Action
Assessments	AI impact assessments	Document risks & oversight
Transparency	Disclosure requirements	Notify users of AI use
Consent	Biometrics	Obtain explicit user consent
Vendors	Documentation & contracts	Update all vendor agreements
Policy	Privacy & governance	Public + internal policies
Monitoring	Annual review	Audit outputs & risks

Penalties & Enforcement (What Happens in Real Life)

If you violate TRAIGA, expect:

• Civil penalties

• Texas AG investigations

• Consumer complaints

• Forced corrective action

• Extra scrutiny if biometrics are involved

I’ve seen companies get DTPA demand letters over nothing more than a misleading AI-generated email. TRAIGA gives regulators even more to work with.

Be careful here — AI doesn’t get blamed. Your business does.

Case Example

A Houston HR-tech startup ranked applicants using an AI “culture fit” score.

The audit uncovered:

• No applicant disclosure

• Potential demographic bias

• Zero vendor documentation

They fixed it by:

• Adding transparency notices

• Getting training data summaries

• Adding human review

• Completing an AI impact assessment

Result? They avoided penalties and closed a major funding round because investors appreciated their compliance maturity.

FAQs

1. Does TRAIGA apply to small businesses and startups?

Yes. Any Texas business that uses AI, including tools from third-party vendors, must comply if the AI influences decisions affecting people.

2. Is consent required for facial recognition or voice analysis?

Yes. TRAIGA requires affirmative, documented consent for biometric data.

3. Are AI marketing tools covered?

Yes. Behavioral targeting, personalization, and automated messaging are subject to TRAIGA transparency and harm-prevention requirements.

4. Can I rely solely on my AI vendor for compliance?

No. Deployers remain responsible for how AI impacts Texans—even if the vendor built the system.

5. Do I need a formal AI governance policy?

Yes. TRAIGA anticipates internal governance policies, oversight processes, and documentation.

Internal Links

• Business Law

• Technology & IP

• Employment Law and Issues

• Contracts

• Contact / Consultation

External Sources (Authority)

• Texas Legislature

• FTC

• NIST AI RMF

Author & Reviewer

Author: Ashley M. Spencer, Esq.Partner, The Spencer Law Firm, Houston, Texas, 15+ years of business, litigation, and technology law experience.

Reviewer: Bonnie E. Spencer, Esq.Principal Attorney, 40+ years in securities, business, and complex litigation.

Disclaimer: Educational only, not legal advice.