Guide

Other States and the EU: AI Laws That Reach Texas Companies

The out-of-state AI laws most likely to reach a Texas company, and the dates that matter.

Law checked through

Short Answer

A Texas company can meet other jurisdictions’ AI rules through its customers, applicants, employees or operations. Colorado’s 2026 automated decisionmaking technology (ADMT) act has principal requirements scheduled for January 1, 2027. California privacy and employment regulations have different scopes and phased dates. Illinois employment provisions took effect January 1, 2026; New York City regulates covered hiring tools. EU coverage and deadlines depend on the provider or deployer role and the system category. A common governance record can support several analyses, but it does not replace checking each jurisdiction’s elements and exemptions.

Which Laws Apply

Texas AI-specific: the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) for Texas activity.

Generally applicable Texas law: choice of law and contract terms with out-of-state customers.

Other jurisdictions: the laws below, depending on where customers, applicants and users are.

Major State Laws

JurisdictionRuleScope and timing
ColoradoSB 26-189Signed May 14, 2026, repeals and reenacts the earlier AI provisions with ADMT duties for consequential decisions. Principal requirements apply January 1, 2027. Use the 2026 act, not the earlier SB 24-205 checklist.
CaliforniaCPPA ADMT and risk-assessment regulationsApproved September 22, 2025 and effective January 1, 2026. ADMT compliance begins January 1, 2027. Audit and assessment reporting deadlines are staggered.
CaliforniaCivil Rights Council automated-decision employment regulationsEffective October 1, 2025. Employment discrimination provisions reach automated systems; relevant records generally retained four years.
IllinoisPublic Act 103-0804, Human Rights Act amendmentEffective January 1, 2026. Covered employment AI use carries notice and antidiscrimination provisions; definition and implementing requirements control.
New York CityLocal Law 144; New York City Department of Consumer and Worker Protection (DCWP) rulesEnforced beginning July 5, 2023. Covered automated employment decision tools require an independent bias audit, public summary and required notices.

The EU AI Act

EU AI Act coverage follows Article 2, including certain non-EU providers and deployers whose output is used in the EU, with statutory exceptions. The original Chapter II prohibitions began applying February 2, 2025 and general-purpose AI provisions followed August 2, 2025. Regulation (EU) 2026/1744 entered into force July 27, 2026. The amendment added two Chapter II prohibitions that apply December 2, 2026, not at entry into force: Article 5(1)(ba) bars AI systems that generate or manipulate nonconsensual intimate imagery of an identifiable person, and Article 5(1)(bb) bars AI systems that generate or manipulate child sexual abuse material. Provider duties are qualified: placing on the market or putting into service is barred only where that generation or manipulation is the system’s intended purpose or a reasonably foreseeable and reproducible outcome without adequate technical safeguards, and deployer use is barred only where the deployer uses the system for that purpose. Separately, the amendment moved the principal Chapter III high-risk requirements to December 2, 2027 for Article 6(2) and Annex III systems, and August 2, 2028 for Article 6(1) and Annex I systems. Article 50 transparency requirements retain the general August 2, 2026 application date. A Texas company should identify its role and use case before applying a single AI Act deadline.

Building One Program for Many Laws

Most of these laws share a structure: know which systems make or shape consequential decisions, tell people when AI is used, let them correct data or reach a human, test for discrimination and keep records. A Texas company that builds its governance program around those elements, and around the documentation TRAIGA’s defenses reward, will be closer to compliance in several states at once. See AI Governance Programs and the TRAIGA Defenses.

Illustrative Example (Hypothetical)

Hypothetical: a Texas staffing firm uses a screening tool for clients in Texas, Illinois and New York City. Federal and Texas employment law apply to covered Texas uses. Covered Illinois uses add notice requirements; covered New York City tools add independent audit, public-summary and notice rules. The firm should test each rule’s definitions, actors and exceptions before choosing a common process. A single national process can be useful, but the strictest label alone does not establish compliance everywhere.

What Is Unsettled

Whether Colorado’s amended law takes effect on schedule, given federal intervention in litigation; how California’s ADMT opt-out will work in employment; and whether a national framework will preempt some or all of these laws.

Sources

  • Colorado SB 26-189
    Enacted Statute · Other State · May 14, 2026 enactment; principal requirements · Enacted; principal duties not yet applicable · Other-State Law · January 1, 2027
  • California ADMT Regulations Approval
    Agency Rules · Other State · September 22, 2025 approval; January 1, 2027 ADMT compliance · Phased compliance · Other-State Law · January 1, 2026
  • California Employment ADS Regulations
    Agency Rules · Other State · four-year relevant record retention · In effect · Other-State Law · October 1, 2025
  • Illinois Public Act 103-0804
    Statute · Other State · Section 5; employment AI provisions · In effect · Other-State Law · January 1, 2026
  • New York City Automated Employment Decision Tools
    Agency Rule and Law · Other State · Local Law 144 and DCWP rules · In effect · Other Jurisdiction · July 5, 2023
  • EU AI Act 2024/1689
    Regulation · International · Articles 2, 5, 50 and 113; read with 2026/1744 · Phased application · International Law
  • EU Digital Omnibus on AI 2026/1744
    Regulation · International · Article 1(7) amending AI Act Article 5 (new points (ba) and (bb), paras 1a and 1b, apply Dec 2, 2026); Article 1(40) revising Article 113 (high-risk dates Dec 2, 2027 and Aug 2, 2028); Article 4 entry into force July 27, 2026 · In force; phased deadlines · International Law · July 27, 2026