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State - Texas Agencies Are Using AI for Road Planning and Fraud Screening Under a 2025 State Law

Texas Agencies Are Using AI for Road Planning and Fraud Screening Under a 2025 State Law

Texas state agencies are using artificial intelligence to plan road projects and screen for fraud, operating under a code of ethics the state adopted after the Legislature passed Senate Bill 1964 in 2025, Community Impact reported.

Where It Is Being Used

The Texas Department of Transportation uses AI to analyze infrastructure, rank construction priorities, build road safety plans and manage traffic flow, and published an AI strategic plan in late 2024. The Texas Workforce Commission and the Texas Health and Human Services Commission both use it for fraud prevention.

Tony Sauerhoff, executive director of the Texas Department of Information Resources and the state’s chief AI officer, said at a Reuters conference on September 24 that the state’s aim is delivering services to more than 31 million Texans efficiently. He also said the technology will likely shrink agency headcount over time through attrition rather than layoffs.

The Rules That Apply Locally

The Department of Information Resources created an AI code of ethics in late 2025 that is mandatory not only for state agencies but for local governments that buy, build or deploy AI systems. That reaches the City of Houston and Harris County, both of which govern parts of the Lake Houston area. The code covers human oversight, fairness, accuracy, transparency, data privacy, security, accountability and documentation, and it requires that a resident harmed by an incorrect AI decision affecting a government service have access to a rapid correction process.

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