Texas government implements AI code of ethics, considers data center regulations

Tony Sauerhoff, executive director and chief AI officer for the Texas Department of Information Resources (DIR), highlighted that the primary use of artificial intelligence at the state level is to enhance government efficiency, potentially leading to staff reductions through attrition. Sauerhoff, speaking at a Reuters conference in Austin, noted that the Texas Department of Transportation is a leader in AI adoption, utilizing the technology to analyze infrastructure, prioritize construction, optimize road safety, and manage traffic flow. Other agencies like the Texas Workforce Commission and Texas Health and Human Services Commission are exploring AI for fraud prevention.

In late 2025, the DIR established an AI code of ethics, mandated by state law, which all state agencies and local governments must adopt if they use AI systems. This code addresses crucial areas such as human oversight, fairness, accuracy, data privacy, security, and accountability, ensuring redress for Texans negatively impacted by AI decisions. Sauerhoff emphasized maintaining public trust, stating that government entities cannot afford the loss of trust that for-profit entities might absorb after AI-induced mistakes.

Looking ahead to the next legislative session, Texas lawmakers are examining tighter regulations concerning artificial intelligence, especially as it pertains to data centers. Governor Greg Abbott, who previously declared Texas the "epicenter of AI development" amidst Google's data center investments, has directed lawmakers to ensure data center companies bear their own grid infrastructure costs, contribute to increased power generation capacity, employ water-efficient technologies, and manage community impacts. Legislative committees have conducted hearings on the impact of the data center boom on the state's power grid and how regulators are addressing this growth.