Texas AG Race Could Bring New Scrutiny of Workplace AI

If Democratic attorney general nominee Nathan Johnson prevails in Texas's upcoming gubernatorial election, businesses employing artificial intelligence (AI) for employee compensation or layoffs may face heightened scrutiny. Johnson's proposal seeks to address two gaps in Texas' current AI framework: tools used to influence wage negotiations and the lack of mandatory disclosures when AI determines layoffs.

According to an analysis by Fisher Phillips, Johnson's election could alter enforcement priorities, even if legislative changes prove challenging. His campaign, "Catching Up To Yesterday," promises an initial audit of consumer protection, competition, and employment laws within the first 30 days of his term, followed by collaboration with legal teams and lawmakers to address identified issues.

Johnson also plans to issue biannual reports from the Consumer Protection Division highlighting technological advancements that pose risks to consumers and employees. Employers could be required to disclose instances where AI contributed to termination decisions, including the elimination of entire positions. Additionally, Johnson proposes restrictions on wage manipulation, potentially necessitating closer examination of compensation software and vendor practices.

However, these remain policy objectives rather than enacted requirements. Texas already has the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), effective January 1, 2026, which prohibits discriminatory AI use, government social scoring, and biometric applications. However, enforcement is solely in the hands of the attorney general, with no private right of action.

The election's outcome is uncertain, with recent polls indicating a competitive race between Johnson and Republican Mayes Middleton. Despite the possibility of a Democratic victory, Republicans are expected to maintain control of both legislative chambers, and there's a risk that attempts to expand TRAIGA's scope could face legal challenges from business groups.

Regardless, businesses should proactively assess their AI usage, maintain documentation of human oversight in employment decisions, and verify vendor AI testing for bias and manipulative design. A Johnson win might accelerate enforcement, while broader AI obligations for workplaces would still depend on legislative developments.