Ken Paxton and Artificial Intelligence: A Legal Approach to an Age of Technology
Ken Paxton, the Attorney General of Texas since 2015, has become one of the leading voices in the United States to consider the challenges and controversy surrounding artificial intelligence (AI). Despite political and legal controversy during his term, including a 2023 impeachment vote and a 2025 fraud lawsuit settlement for past allegations, Paxton has steered the activities of his office increasingly toward regulation of AI technologies in ways that are shaping the legal framework of tech regulation.
Launching the Data Privacy and Security Initiative
In June 2024, Paxton announced the "Data Privacy and Security Initiative," a dedicated office in the Office of the Attorney General (OAG) for prosecuting and enforcing data privacy laws, including those relating to AI. The initiative signaled forcefully that Texas sought to be a force to be reckoned with in AI regulation, particularly in light of the absence of comprehensive federal regulation.
As Paxton explains, the aim is to hold technology firms accountable when their AI products violate consumer safeguards, especially in cases of data exploitation, false advertising, and potential harms to children.
Crackdown on AI in Healthcare: Pieces Technologies Case
One of the first significant enforcement actions was against Pieces Technologies, a Texas company that claimed its generative AI model could read electronic health records with unparalleled precision—allegedly with fewer than one mistake per 100,000 records. Following its probe, Paxton's office concluded those claims were misleading, especially given the importance of healthcare diagnosis and patient safety.
The case resulted in a first-of-its-kind settlement in September 2024. The company agreed to make transparent disclosures about the accuracy of its model and to change its advertising practices. This was a national precedent, and it demonstrated how state law (in this instance, the Texas Deceptive Trade Practices Act) could be leveraged to oversee AI technologies.
Targeting Foreign Influence: The DeepSeek Investigation
Paxton revealed in early 2025 that it was investigating DeepSeek, a Chinese artificial intelligence company suspected of having links to the Chinese Communist Party. Accusing national security threats and potential violation of the Texas Data Privacy Act, Paxton issued Apple and Google subpoenas requesting information on how DeepSeek's application was distributed and whether it accessed personal user information.
This inquiry is one aspect of a wider state-led initiative to counter the geopolitical fears about foreign AI companies operating in the U.S. economy.
Protecting Children: Character.AI and Youth Platforms
In December 2024, Paxton expanded his reach to include AI platforms utilized by kids and launched an investigation into 15 tech companies, including Character.AI. The probe was initiated on the SCOPE Act a Texas legislature passed to protect children's data online by requiring parents to give permission for the collection of data from users under 13 years of age.
Paxton condemned some websites for failing to safeguard children, such as from being exposed to adult-like simulated speech, which is AI-generated. These episodes solidified his office's commitment to safeguarding children in the online world.
Senate Bill 20: Texas Acts in Legislature
Supported by Paxton, the Texas Senate Bill 20 was enacted into law in June 2025. Effective from September 2025, the law creates one of the most extensive state-level regulatory environments for AI in the United States. Some of its main provisions are:
Prohibiting AI-based child pornography, even cartoon or animated.
Prohibiting state agencies from employing AI systems that categorize people in discriminatory manners.
Making complete transparency obligatory whenever AI is employed in public services.
Creating an AI Advisory Council to monitor long-term social impacts.
SB20 was a model for how states can proactively legislate AI while responding to federal pressure to wait or postpone action.
A Strategic Balancing Act
Ken Paxson's approach to regulating AI is multifaceted:
Enforcement of existing consumer protection laws like the Texas Deceptive Trade Practices Act.
Promoting transparency and accountability in AI advertising and disclosures.
Protecting data privacy, and especially for at-risk groups like children.
Passing new protections related to AI's unique risks and opportunities.
While most of its federal counterparts have been slow to act and have shown reluctance in moving forward Paxton has utilized the power of his office to fill the regulatory void making Texas a pioneer in regulation of ethical AI.
Conclusion: Texas at the Crossroads of Innovation and Regulation
While Ken Paxton remains a polarizing political leader, his track record on AI has established him as one of the nation's top voices in today's national debate over how to control the latest advanced technologies. Through legal challenges, legislative support, or international scrutiny, Paxton's legacy in the realm of AI has the potential to resonate far beyond Texas in determining how America manages to deal with one of the most transformative forces of the 21st century.