DIR Plan Highlights AI, Procurement and Cloud Expansion

The Texas Department of Information Resources' (DIR) fiscal years 2027-2031 strategic plan places artificial intelligence, data governance, procurement modernization and shared services at the center of its work across Texas government.

DIR’s plan, submitted June 1, describes the department’s mission as leading the state’s technology strategy, protecting state technology infrastructure and offering technology solutions for all levels of government. Its strategic objectives include customer experience, compliance, technology services, responsible use of artificial intelligence and a learning culture for state technology leadership.

The plan outlines six operational goals focused on customer experience, internal efficiency, system modernization, procurement, data maturity and workforce development. The first goal calls for secure, efficient, data-driven, artificial intelligence-ready and innovative technology services that help government entities serve Texans and make it easier for residents to conduct government business.

AI appears throughout the plan. DIR says its AI and innovation function assists agencies and public entities with generative AI adoption, manages required public-sector awareness training and provides forums, templates, guides and governance practices for responsible use. DIR also offers a public-sector AI sandbox, an AI user group and a secure Innovation Lab.

DIR plans to support AI pilot programs, an AI sandbox, governance frameworks and ethical standards for deployment across state systems. Internally, DIR says it will target manual and repetitive processes for AI and other technology solutions.

Modernization is another central theme. DIR says it will accelerate cloud adoption, modernize legacy platforms, expand shared services and provide state leaders with information for modernization investment decisions. The plan also calls for broader use of texas.gov, Texas by Texas (TxT) and Texas Identity Access Management.

Website modernization is included in the same operational goal. DIR says it will implement requirements related to accessibility, usability, responsive design and digital service delivery while applying user-centered design and accessibility standards across DIR systems.

Procurement is a separate operational priority. DIR says it will expand Cooperative Contracts vendor pools, deliver scalable and secure technology solutions, provide executive-level procurement training and implement a procurement-as-a-service pilot to strengthen public-sector procurement capabilities. The plan also calls for refined contract vehicles, competitive pricing, streamlined procurement pathways and greater transparency.

DIR also recommends statutory changes to raise the state competitive bidding threshold from $25,000 to $100,000 and increase the maximum Cooperative Contracts threshold for IT commodities to more than $10 million. DIR says the Cooperative Contracts change could reduce procurement timelines by an estimated 50 to 70 percent and create $335,000 to $700,000 in estimated savings per procurement action.

Data governance and privacy are tied directly to AI readiness. DIR says it will expand data governance and literacy within the department and across state agencies, improve data quality through validation and continuous monitoring, promote secure data sharing and increase real-time reporting and analytics.

The plan also reflects the shifting cybersecurity structure in Texas government. DIR recommends statutory updates to complete the transition of certain cybersecurity functions to Texas Cyber Command, saying additional changes are needed to clarify responsibilities, remove duplicative language and address coordination around reporting on IT infrastructure, cybersecurity and legacy systems.

DIR’s workforce plan adds another pressure point. As of May 1, DIR had 250 employees, with 78 percent age 40 or older. The plan says 29 percent of DIR’s current workforce will be eligible to retire between fiscal years 2026 and 2030, making recruitment, apprenticeships, internships and workforce development part of DIR’s longer-term technology strategy.

DIR’s AI training certification was still in progress when the plan was submitted. As of May, DIR has received 87 training applications, certified 57 programs and declined to certify 21 that did not meet the state’s standards.