Texas SB 140 Is Already in Effect — And AI-Powered Businesses Are the Target

Texas SB 140 Is Already in Effect — And AI-Powered Businesses Are the Target
If your company uses AI to make outbound calls or send automated messages to customers in Texas, there's a law you need to know about right now.
C
Chuck · Daitalink
AI Conversation Oversight · Helping businesses control what AI says to customers
June 2026

Texas Senate Bill 140 took effect September 1, 2025 — and unlike most AI regulations, it has teeth that individuals can actually use against you.

This isn't the Attorney General knocking on your door someday. This is a customer suing you for $1,500 per call. Today.

What Is Texas SB 140?

SB 140 is a major expansion of Texas telemarketing law, specifically updated to address the rise of AI voice and automated messaging technology. Here's what it covers:

  • AI voice calls — covers calls using synthetic or AI-generated voice without live human interaction at the start
  • Text messages and multimedia — SMS, MMS, images, and other electronic transmissions to Texas residents are all in scope
  • Prior express written consent — signed, standalone, with no pre-ticked boxes, explicitly disclosing that AI or automated technology will be used

What Happens If You Get It Wrong?

This is where SB 140 stands out from most state AI laws. Individual consumers can sue you directly — no waiting for a government agency to act.

$1,500
per violation · paid directly to the person you called
3×
triple damages for willful violations
+DTPA
attorney's fees & mental anguish damages for knowing violations
$750,000500 calls without proper consent at $1,500 each. Triple that for willful. Plaintiff attorneys are already building AI-voice class action practices in Texas right now.

How to Stay Compliant

  1. Audit your consent flow. Every Texas contact needs valid, documented consent that specifically mentions AI or automated calling. Generic web form opt-ins won't cut it.
  2. Update your opt-in language. Consent must explicitly state the customer agrees to AI-generated or automated calls — standalone, not bundled with terms of service.
  3. Disclose AI use within the first 30 seconds. Texas law requires AI voice calls to identify themselves as AI at the start of every call.
  4. Honor opt-outs immediately. Build opt-out handling directly into your AI calling workflow — not as an afterthought.
  5. Document everything. Consent records, call logs, opt-out requests. If you're sued, the burden falls on you to prove consent existed.
  6. Use compliant AI systems. If your AI provider can't tell you exactly how their system handles Texas consent requirements, that's a red flag.

The Bottom Line

Companies that view AI compliance as a checkbox are going to get hit. Companies that build compliance into their AI systems from the ground up are going to win — because they'll be the ones their customers trust, and the ones their competitors fear.

The question isn't whether your business should use AI. It's whether the AI you're using was built to protect you.

Not sure if your AI calling workflow is compliant?

Daitalink offers a free 20-minute Conversation Risk Diagnostic — we review your current AI and team conversations and show you exactly where the exposure is. No pitch. Just findings.

Schedule Your Free Diagnostic →

The information in this article is for educational purposes and does not constitute legal advice. Consult a licensed Texas attorney for guidance specific to your situation.