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Texas sets new standards for AI use in healthcare

Texas sets new standards for AI use in healthcare

On June 22, 2025, Texas Governor Greg Abbott signed House Bill 149 into law, formally enacting the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), which establishes a statewide framework for the responsible use of artificial intelligence.

 

What happened 

Just two days earlier, on June 20, 2025, Governor Abbott also signed Senate Bill 1188, a companion law that introduces sector-specific obligations for AI use in healthcare. TRAIGA, which takes effect on January 1, 2026, applies to both state agencies and private-sector entities, including healthcare providers, and requires transparency and oversight in AI-driven decision-making. 

It requires that healthcare providers disclose the use of AI to patients when it is involved in diagnosis or treatment decisions, barring emergency exceptions. TRAIGA also prohibits intentional discrimination through AI and imposes governance standards, documentation requirements, and oversight obligations. 

 

In the know: What is SB 1188, and why is it relevant?

Senate Bill 1188 is a targeted legislative measure that addresses the specific use of artificial intelligence in the healthcare sector, making it highly relevant to the broader goals of TRAIGA (House Bill 149). While TRAIGA provides a general governance framework for AI across Texas, SB 1188 narrows the focus to medical settings, ensuring that AI serves as a tool for support, not a replacement for professional judgment. 

The bill emphasizes that healthcare practitioners must operate within the scope of their licensure, regardless of AI involvement, and are required to personally review all AI-generated diagnostics or treatment suggestions. It prevents blind reliance on machine outputs and reinforces that final medical decisions must remain in human hands. SB 1188 also introduces strict data localization rules, prohibiting the offshoring of electronic medical records, a provision that directly responds to growing concerns about data privacy.

 

What was said 

According to David Dunmoyer, Director for Better Tech Tomorrow in a Texas Public Policy Foundation article,This bill is the culmination of years of work by Chairman Giovanni Capriglione and hundreds of stakeholders committed to securing Texas as the nationwide model for AI policy, opportunity, and flourishing. 

Prudent AI policy has eluded so many legislatures, and as states like California flounder to provide regulatory certainty for businesses, we continue to see more AI businesses move to Texas than any other state. HB 149 provides a responsible, light touch framework that grants businesses clear rules of the road, paving the path for Texas to lead the charge in American dominance in this essential space.”

Related: HIPAA Compliant Email: The Definitive Guide (2025 Update)

 

FAQs

What does AI-assisted decision-making mean?

AI-assisted decision-making refers to scenarios where healthcare professionals use AI tools or algorithms to inform, guide, or support clinical judgments. The final decision is still made by a human, but the AI may provide data analysis, diagnostic predictions, or treatment suggestions.

 

What is the scope of licensure?

A healthcare provider’s scope of licensure refers to the legal boundaries of what they are authorized to do in their professional role, based on education, certification, and state regulations. Even when using advanced tools like AI, practitioners must stay within this scope.

 

What are electronic medical records (EMRs)? 

Electronic medical records are digital versions of a patient's paper chart. They contain medical history, diagnoses, medications, treatment plans, immunization dates, allergies, and test results, and are used by healthcare providers to deliver coordinated care

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