DIR Proposes Statewide AI Code of Ethics for Government Use

The Texas Department of Information Resources (DIR) has proposed a new statewide Code of Ethics for the use of artificial intelligence systems in government.

The code, published in the Nov. 7 issue of the Texas Register, would apply to all state agencies and local governments that procure, develop or deploy AI technology. The code does not mandate state agencies to integrate AI, nor does it prohibit its use.

The proposed rule outlines seven guiding principles for ethical AI use: human oversight, fairness, accuracy, redress, transparency, privacy and security. These are intended to ensure that AI technologies used in government are safe, unbiased, reliable and subject to accountability.

Under these guardrails, agencies would be required to implement human oversight and review for all AI systems and ensure heightened scrutiny for those that impact legal rights, critical services or sensitive decisions. They must also be able to deactivate systems that malfunction or cause harm.

To promote fairness, agencies would be expected to monitor for bias, govern data quality and avoid unlawful impacts on individuals. Transparency provisions call for clear disclosure when AI is used in decision-making, and systems may not be presented as human. Privacy and data minimization requirements would apply to any AI system handling personally identifiable information.

The code also mandates internal processes for affected individuals to challenge or appeal adverse outcomes caused by AI-driven decisions. In addition, agencies would be required to train staff to verify outputs and monitor the accuracy of AI systems throughout their life cycle.

Agencies must document how each AI system aligns with the code’s ethical principles, including how oversight is applied, what data is used and how risks are identified and mitigated. The rule encourages organizations to adopt internal policies, designate responsible staff and maintain records of AI system behavior, decisions and interventions over time.

The proposed rule draws heavily from the National Institute of Standards and Technology’s AI Risk Management Framework and reflects recent legislative direction, including Senate Bill 1964, which requires DIR to adopt a statewide ethics policy for artificial intelligence.

The proposed AI Code of Ethics is currently open for public comment. Once finalized, it will establish binding guidelines for the ethical use of AI across Texas government.

The full rule text is available on the Secretary of State’s website. Stakeholders may submit feedback to DIR via email during the official comment period, which begins 30 days after publication in the Texas Register.