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Texas Enacts Landmark AI Governance Law,Healthcare Industry Faces New Compliance Hurdles
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AUSTIN,TX – July 18,2025 – Texas has become the first state in the nation to enact comprehensive legislation governing the use of Artificial Intelligence (AI),with the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) now in effect. The law, signed into law on July 11th, 2025, establishes a rigorous framework for the ethical advancement, deployment, and use of AI systems across various sectors, with particularly stringent requirements for healthcare service providers.
What is TRAIGA and Why Does it Matter?
TRAIGA aims to address the rapidly evolving landscape of AI technology and mitigate potential risks associated with its use.The legislation focuses on ensuring transparency,accountability,and fairness in AI systems,preventing bias,and protecting consumer rights. Experts predict TRAIGA will serve as a model for other states considering similar regulations.
according to legal analysis from Spencer Fane attorneys Shawn Tuma and Christine Chasse, published in Texas Lawyer, TRAIGA represents “a significant milestone in artificial intelligence (AI) regulation” establishing a “comprehensive framework.” The attorneys emphasize that compliance is not optional, warning that failure to adhere to the new regulations could result in significant penalties and significant reputational damage.
Key requirements for Healthcare Providers
The healthcare sector is subject to heightened scrutiny under TRAIGA. Providers utilizing AI for diagnosis, treatment, or patient care must now adhere to specific guidelines, including:
- Transparency: Clear disclosure to patients when AI is being used in thier care.
- Data Security: Robust data protection measures to safeguard patient facts processed by AI systems, aligning with HIPAA regulations.
- Bias Mitigation: Proactive steps to identify and mitigate potential biases in AI algorithms that could lead to unequal or discriminatory healthcare outcomes.
- human Oversight: Maintaining appropriate human oversight of AI-driven decisions, ensuring clinical judgment remains paramount.
- Auditing: regular auditing of AI systems to ensure ongoing compliance and effectiveness.
TRAIGA defines “AI systems” broadly, encompassing software, algorithms, and other technologies that exhibit intelligent behavior. The law applies to both AI systems developed in-house and those procured from third-party vendors.
Strategic Next Steps for Businesses and Healthcare Organizations
Shawn Tuma, co-leader of Spencer fane’s Cyber | data | Artificial Intelligence | Emerging technology Practice Group and Office Managing Partner for the firm’s Plano location, advises organizations to immediately begin assessing their current AI deployments and developing a comprehensive compliance strategy. Christine Chasse, leveraging her extensive experience with CMS investigations and HIPAA breaches, recommends prioritizing data security and incident response planning.
Specifically, organizations shoudl:
- Conduct a thorough inventory of all AI systems in use.
- Review vendor contracts to ensure compliance with TRAIGA requirements.
- Develop and implement policies and procedures for responsible AI development and deployment.
- Provide training to employees on TRAIGA compliance.
- Establish a system for ongoing monitoring and auditing of AI systems.
Expert Insights
“Texas is taking a proactive approach to AI governance, recognizing the immense potential of this technology while also acknowledging the need to address its inherent risks,” says Tuma.”TRAIGA is a complex law, and organizations will need to invest significant resources to ensure compliance.”
Chasse adds, “Healthcare providers, in particular, must prioritize patient safety and data privacy.TRAIGA provides a clear framework for doing so, but it requires a commitment to ongoing vigilance and adaptation.”
