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.
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Short Answer
Federal law reaches AI through statutes that regulate conduct whatever tool performs it. The FTC Act prohibits deceptive claims about what an AI product does and unfair data practices. The TCPA treats AI-generated voices as artificial voices that require consent. Title VII, the ADA and the ADEA apply to AI-assisted hiring, including tools a vendor built. The Fair Credit Reporting Act can reach vendors that compile and score applicant data, and the Equal Credit Opportunity Act requires specific reasons for credit denials however the decision was made. COPPA’s amended rule tightens consent for children’s data. The TAKE IT DOWN Act imposes takedown duties for intimate images, including AI forgeries. In 2025 the CFPB withdrew AI-related circulars and an April 2025 executive order directed federal agencies to deprioritize disparate-impact enforcement. The 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 None of that repealed Title VII, the ADA, the ADEA or ECOA, and private lawsuits continue.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.
Generally applicable Texas law: Texas counterparts are covered in the subject Guides (DTPA, Labor Code chapter 21, TDPSA).
Federal: the statutes below.
Statute by Statute
| Authority | AI application | Verified status or development |
|---|---|---|
| FTC Act, 15 USC 45 | Deceptive product, accuracy and data claims; unfair practices | Pieces 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 USC 227; FCC 24-17 | AI-generated voices in covered calls | February 8, 2024 declaratory ruling; consent requirements and exceptions remain call-specific. |
| Title VII; ADA; ADEA | Discrimination, selection procedures and accommodations | EO 14281, April 23, 2025, addresses federal priorities. Title VII 2000e-2(k) remains the statutory disparate-impact provision. |
| FCRA, 15 USC 1681 et seq. | Covered reports, background checks and employment or credit decisions | Coverage depends on the data supplier’s function and the report’s use. |
| ECOA; 12 CFR 1002.9 | Adverse-action notices for covered credit decisions | Specific reasons or the prescribed right to request them; different business-credit provisions. CFPB circular withdrawals do not amend the regulation. |
| COPPA; 16 CFR Part 312 | Covered services directed to children under 13 or with actual knowledge | 2025 amendment effective June 23, 2025; general compliance date April 22, 2026, with specified exceptions. |
| TAKE IT DOWN Act, Pub. L. 119-12 | Specified nonconsensual intimate material and platform removal | Covered platforms’ 48-hour valid-request process enforceable May 19, 2026. |
| HIPAA, 45 CFR Parts 160 and 164 | Protected health information and business associates | Applies according to entity, information and role. |
| Securities law; SEC orders IA-6573 and IA-6574 | False statements about AI use by investment advisers | March 18, 2024 settled orders; not adjudicated AI-performance findings. |
| DTSA, 18 USC 1836 and 1839 | Trade secrets used through AI or embodied in AI systems | Comet 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 Title VII 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.
Copyright, Patents and Export Rules
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. TRAIGA’s discrimination section 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.
Sources
- Federal Trade Commission Act
- FCC Declaratory Ruling 24-17
- Title VII Disparate Impact
- ADA Employment Duties
- Age Discrimination in Employment
- Consumer Report Employment Use
- Equal Credit Opportunity Act
- Regulation B Adverse Action
- 2025 COPPA Final Rule
- TAKE IT DOWN Act
- HIPAA Privacy and Security Rules
- SEC Delphia Settled Order
- SEC Global Predictions Settled Order
- Federal Trade Secret Definitions
- CFPB Withdrawn Guidance Record
- Executive Order 14281
- FTC Rytr Proceeding
- EEOC Artificial Intelligence and ADA Employment Resources