Highlights
Impacted Employers:Those conducting, advertising or promoting business in Texas; producing products or services used by Texas residents; or developing or deploying an AIsystemin Texas. See the text of the law for exemptions.
Effective Date: Jan. 1, 2026
Summary: Texas has enacted legislation which, among other things, prohibits the development or deployment of an artificial intelligence system with the intent to unlawfully discriminate against a protected class.
Next Steps: Ensure that AI systems are not developed or used for the prohibited scenarios under the law.
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The Details
Texas has enacted legislation, House Bill 149, which, among other things, prohibits the development or deployment of an artificial intelligence system with the intent to unlawfully discriminate against a protected class. House Bill 149 takes effect Jan. 1, 2026.
Under the law, a protected class is defined as a group or class of people with a characteristic, quality, belief or status protected from discrimination by state or federal civil rights laws, including race, color, national origin, sex, age, religion or disability.
Note: The law adds disclosure requirements for governmental entities and health care providers, but it does not require private employers to disclose to employees or job applicants the use of AI to make or aid in employment-related decisions.
The law also states that a disparate impact is not sufficient by itself to demonstrate an intent to discriminate. In addition, individuals do not have a private cause of action under the statute.
See the text of the law for further requirements, details and exceptions.
Next Steps
Ensure that AI systems are not developed or used for the prohibited scenarios under the law.