Topic
Governance and Vendors
An AI tool can reach customer records, confidential processes and decisions before anyone has approved that access.
Law checked through
Short Answer
Start with the proposed task and the information the tool can reach through uploads, integrations and account permissions. Compare the vendor’s binding terms with its product settings: a training opt-out alone does not settle retention, support access or subcontractor use. When the Texas Data Privacy and Security Act applies and the vendor acts as a processor, Business and Commerce Code § 541.104(b) specifies contract terms, and Business and Commerce Code § 541.104(a)(2) now expressly covers assistance with the security of personal data processed by an AI system. Trade secret protection separately depends on reasonable secrecy measures. TRAIGA gives a practical reason to keep records of testing and internal review: several of its defenses turn on how a violation was discovered and whether the business follows a recognized risk framework. The NIST AI Risk Management Framework is voluntary, but TRAIGA names its Generative AI Profile. The first step is to identify the actual use, the actor, the affected information and the source of the asserted duty. Keep the tool’s instructions, applicable terms and material settings with the approval record. A statute, a court order and a practical control have different legal effects. The Guides below explain those differences; the Tracker preserves the effective dates and the dated enforcement or litigation events. Related Insights cover individual developments without replacing the underlying Guide.
Key Authorities
Guides
Before a Business Adopts an AI Tool
Identify the task, the information the service can reach, the binding vendor terms, and the person who may approve its output.
AI Vendor Contracts
The terms that matter in an AI services agreement, which ones Texas law requires, and how Texas courts read risk-shifting clauses.
AI Data Lifecycle and Minimization
What enters an AI system, what persists inside it and around it, and when it should leave.
AI Agents and Contract Formation
When software acts for a business, Texas law can treat its actions as the business’s own.
Board Oversight of AI
What directors of a Texas company should know and record about AI risk.
AI Governance Programs and the TRAIGA Defenses
Why testing, feedback channels and a recognized risk framework matter under Texas law, and what a workable program records.
Insights
AI Data Duties in Texas Processor Contracts
HB 149 added AI to a processor’s security assistance duty under the TDPSA. It did not add a new mandatory contract clause.
