Texas SMS & AI Laws 2025–2026: What Businesses Must Know About SB 140 and the Texas AI Disclosure Law

Texas is rolling out two major consumer protection laws that will affect businesses using text messaging (SMS) and artificial intelligence (AI) for communication and marketing.

These laws are:

1. Texas Senate Bill 140 (SB 140) – Effective September 1, 2025
2. Texas Responsible Artificial Intelligence Governance Act (TRAIGA) – Effective January 1, 2026

Together, these laws aim to increase transparency, accountability, and consumer trust in digital communications.

If your business uses SMS campaigns, chatbots, or AI agents, these new regulations will directly affect how you operate in Texas.

Law #1: Texas Senate Bill 140 (SB 140) – SMS Marketing & Telemarketing Law

Effective Date: September 1, 2025

What Is Texas SB 140?

Texas Senate Bill 140 expands the state’s telemarketing laws to include SMS and MMS text messages. This law is often referred to as Texas’s updated Mini-TCPA law.

Under SB 140, text messages are treated the same as telemarketing phone calls.

What SB 140 Covers

SB 140 applies to businesses that send:

• Promotional or marketing text messages
• Automated SMS campaigns
• Commercial messages encouraging purchases or services
• Bulk messaging systems

Key Requirements Under SB 140

Businesses that use SMS marketing in Texas may be required to:

• Register as a telephone solicitor with the Texas Secretary of State
• File an annual registration form and pay a fee
• Maintain compliance with consent and Do-Not-Call regulations
• Keep records of SMS marketing campaigns
• Follow Texas Deceptive Trade Practices laws

Penalties for Violating SB 140

Violations can result in:

• Civil fines per message sent
• Lawsuits from consumers
• Enforcement actions from the Texas Attorney General

Law #2: Texas Responsible Artificial Intelligence Governance Act (TRAIGA)

Effective Date: January 1, 2026

What Is the Texas AI Law?

The Texas Responsible Artificial Intelligence Governance Act (TRAIGA) regulates how businesses use artificial intelligence when interacting with consumers.

The most important rule:

“You cannot use an AI chatbot or AI agent and pass it off as a human.”

Core Requirement: AI Disclosure

Businesses must clearly disclose when a consumer is interacting with:

• An AI chatbot
• An AI agent
• An automated AI system
• AI-generated communications

This applies to websites, customer service chats, social media messages, and marketing interactions.

Prohibited AI Practices

Under the new law, AI systems may not:

• Deceive users into thinking they are human
• Manipulate or mislead consumers
• Discriminate against protected classes
• Generate illegal or harmful content
• Violate constitutional or civil rights

Enforcement

The Texas Attorney General can impose penalties and fines for violations, especially when AI is used deceptively or harmfully.

Why These Two Texas Laws Matter for Businesses

Together, SB 140 and the Texas AI law focus on:

• Transparency in communication
• Consumer consent
• Truthful marketing practices
• Ethical use of artificial intelligence

If your business uses:

• SMS marketing
• AI chatbots
• AI appointment setters
• AI customer support
• Automated marketing tools

You must prepare for compliance in 2025 and 2026.

How Businesses Can Prepare Now

To stay compliant:

For SMS Marketing (SB 140):

• Review your SMS consent process
• Register if required
• Track and document your campaigns
• Ensure opt-out options are clear

For AI Systems (TRAIGA):

• Add clear disclosures like:
  “You are chatting with an AI assistant.”
• Avoid pretending AI is a human employee
• Audit your AI tools for ethical and legal compliance
• Train staff on the new regulations

Summary: Texas SMS & AI Laws Timeline

Final Thoughts

Texas is leading the way in modern consumer protection laws for the digital age. Businesses that use SMS marketing and artificial intelligence must now operate with greater transparency and responsibility.

Failing to comply with SB 140 or the Texas AI law could lead to fines, lawsuits, and loss of customer trust.

Preparing now will protect your business and strengthen your credibility with Texas consumers.