Texas AI Law

Guide

Federal Laws That Apply to AI Use

The federal statutes that already govern AI use in Texas, and why a change in agency policy does not by itself change the statute.

Law checked through

Short Answer

Federal law reaches AI through statutes that regulate conduct whatever tool performs it. The Federal Trade Commission (FTC) Act prohibits deceptive claims about what an AI product does and unfair data practices. The Telephone Consumer Protection Act (TCPA) treats AI-generated voices as artificial voices that require consent. Title VII, the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA) apply to AI-assisted hiring, including tools a vendor built. The Fair Credit Reporting Act (FCRA) can reach vendors that compile and score applicant data, and the Equal Credit Opportunity Act (ECOA) requires specific reasons for credit denials however the decision was made. The amended Children’s Online Privacy Protection Act (COPPA) rule tightens consent for children’s data. The Tools to Address Known Exploitation by Immobilizing Technological Deepfakes on Websites and Networks Act (TAKE IT DOWN Act) imposes takedown duties for intimate images, including AI forgeries. In 2025 the Consumer Financial Protection Bureau (CFPB) withdrew AI-related circulars and an April 2025 executive order directed federal agencies to deprioritize disparate-impact enforcement. The Equal Employment Opportunity Commission (EEOC) still publishes AI employment resources. None of that repealed Title VII, the ADA, the ADEA or ECOA, and private lawsuits continue.

Which Laws Apply

Texas AI-specific: none in this Guide; the Illustrative Example’s reference to Business and Commerce Code § 552.056(e) is a Texas cross-reference noted as part of the federal compliance discussion.

Generally applicable Texas law: Texas counterparts are covered in the subject Guides (the Deceptive Trade Practices-Consumer Protection Act (DTPA), Labor Code chapter 21, the Texas Data Privacy and Security Act (TDPSA)).

Federal: the statutes below.

Statute by Statute

AuthorityAI applicationStatus or development
FTC Act, 15 U.S.C. § 45Deceptive product, accuracy and data claims; unfair practicesPieces provides a separate Texas DTPA example. FTC set aside the Rytr consent order December 22, 2025; that did not repeal Section 5 or the reviews rule.
TCPA, 47 U.S.C. § 227; Federal Communications Commission (FCC) 24-17AI-generated voices in covered callsFebruary 8, 2024 declaratory ruling; consent requirements and exceptions remain call-specific.
Title VII; ADA; ADEADiscrimination, selection procedures and accommodationsEO 14281, April 23, 2025, addresses federal priorities. 42 U.S.C. § 2000e-2(k) remains the statutory disparate-impact provision.
FCRA, 15 U.S.C. § 1681 et seq.Covered reports, background checks and employment or credit decisionsCoverage depends on the data supplier’s function and the report’s use.
ECOA; 12 C.F.R. § 1002.9Adverse-action notices for covered credit decisionsSpecific reasons or the prescribed right to request them; different business-credit provisions. CFPB circular withdrawals do not amend the regulation.
COPPA; 16 C.F.R. part 312Covered services directed to children under 13 or with actual knowledge2025 amendment effective June 23, 2025; general compliance date April 22, 2026, with specified exceptions.
TAKE IT DOWN Act, Pub. L. 119-12Specified nonconsensual intimate material and platform removalCovered platforms’ 48-hour valid-request process enforceable May 19, 2026.
Health Insurance Portability and Accountability Act (HIPAA), 45 C.F.R. parts 160 and 164Protected health information and business associatesApplies according to entity, information and role.
Securities law; SEC orders IA-6573 and IA-6574False statements about AI use by investment advisersMarch 18, 2024 settled orders; not adjudicated AI-performance findings.
the Defend Trade Secrets Act (DTSA), 18 U.S.C. §§ 1836 and 1839Trade secrets used through AI or embodied in AI systemsComet Technologies USA v. XP Power (July 14, 2026) is a DTSA burden ruling, not an AI ascertainability holding.

What the 2025 Withdrawals Mean

The CFPB lists AI-related circulars as withdrawn on May 12, 2025. The underlying ECOA, Regulation B and FCRA provisions remain in effect and must be analyzed separately. Executive Order 14281 changes federal enforcement priorities concerning disparate impact; it does not delete 42 U.S.C. § 2000e-2(k) or the Texas Labor Code. The EEOC continues to publish AI employment resources. Compliance should start from the current statute or regulation, then identify relevant guidance and its status.

Patent and copyright questions, including human inventorship, authorship and training uses, are covered more fully on Texas IP Law. This Guide addresses the federal duties most likely to affect an ordinary Texas business using AI. It does not give an export-control checklist.

Illustrative Example (Hypothetical)

A Plano lender uses a machine-learning model to approve small business loans. ECOA and Regulation B require that a denied applicant receive specific principal reasons, whether or not the model’s reasoning is easy to explain. The CFPB’s withdrawal of its circular on complex algorithms changes the agency’s guidance, not the regulation. The discrimination section of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) would deem the lender compliant if it is a federally insured institution complying with banking law (Business and Commerce Code § 552.056(e)).

What Is Unsettled

Whether Section 230 protects providers of generative AI for content their models produce; how courts will treat FCRA claims against AI hiring platforms; and the final form of the FTC’s AI accuracy policy statement.

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