What Capriglione’s AI Governance Act Means for Texas

On Dec. 23, state Rep. Giovanni Capriglione (R-98) filed House Bill 1709, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA). A comprehensive regulatory framework for artificial intelligence designed to both foster innovation and encourage private industry investment in the state while protecting individual rights, the bill incorporates recommendations from both private and public institutions.

Industry Insider — Texas spoke with IBM Worldwide Leader for Data and AI Bala Vaithyalingam for insight on the bill and its potential, should it pass in the upcoming legislative session.

According to Vaithyalingam, TRAIGA is “poised to significantly catalyze economic growth across key Texas sectors, including health care, finance and energy” by fostering responsible AI development through provisions for the Texas AI Workforce Development Grant Program and assurances that a human is always in the loop. Funding for AI education programs and expansions of career programs focused on AI skill development through the grant program could provide the upskilling needed to keep up with the rapidly evolving technology.

“While the emergence of AI may necessitate shifts in certain job markets, this legislation will unlock new avenues for innovation and job creation, generating a surge of demand for skilled professionals in AI research, responsible implementation and robust AI governance framework,” says Vaithyalingam. “This includes job roles focused on critical areas such as AI risk assessment, monitoring and ensuring compliance with regulations governing high-risk AI systems.”

Another major area of investment the bill plans to introduce is the establishment of an AI Regulatory Sandbox Program, a 36-month period that would allow developers to conduct research or testing on low-risk AI systems and models to foster further innovation without fear of government interference.

Vaithyalingam predicts this year will see agentic AI, advanced AI systems capable of acting autonomously to solve and adapt to problems based on objective context, become “a key driver of operational improvement in Texas.” Some state agencies, such as the Texas Department of Transportation, have already begun implementing said systems in their administrative functions.

“Both government and private entities will integrate AI agents into their workflows for diverse purposes, including automating repetitive administrative functions, unlocking valuable knowledge from vast data repositories and improving collaboration between departments,” says Vaithyalingam. “As AI permeates government operations across Texas, citizens can anticipate a transformative shift in the delivery of public services, streamlined interactions, enhanced transparency and improved adoption of government services. From expedited service requests to data-driven decision-making that prioritizes citizen needs, AI is poised to revolutionize how Texans engage with their government. This technological advancement extends beyond the government, promising to reshape industries, revolutionize health-care delivery and ultimately elevate the quality of life for all Texans.”

That is not to say the bill is not without its challenges. According to Vaithyalingam, TRAIGA requires further clarification in three key areas: its definition of high-risk AI systems, the risks of vision-based foundation models beyond deepfakes and a need to extend ethical safeguards beyond AI, particularly regarding practices such as social scoring or categorization based on sensitive attributes.

“The Texas AI bill represents a crucial step toward establishing a responsible AI framework within the state,” says Vaithyalingam. “By prioritizing the evaluation of high-risk AI systems, providing a controlled environment for experimentation through a dedicated AI sandbox program and emphasizing robust data privacy measures, Texas aims to cultivate an ecosystem where AI innovation thrives ethically and safely. This proactive approach positions Texas not merely as a participant in the AI revolution, but as a visionary leader, ensuring that AI adoption aligns with the principles of fairness, transparency and societal well-being.”

Industry Insider’s full summarization of the bill can be found here.