According to the Legislative Budget Board (LBB), HB 3512 is not expected to have a significant fiscal impact on the State of Texas. The bill mandates the establishment of state-certified artificial intelligence (AI) training programs and requires certain public officials and employees to complete these trainings annually. However, the LBB assumes that any administrative and operational costs incurred from implementing this initiative can be absorbed within existing appropriations and resources allocated to relevant state agencies, particularly the Department of Information Resources (DIR), which is tasked with certifying the AI training programs​.

Similarly, the fiscal impact on local governments, including school districts and municipalities, is expected to be minimal. The legislation allows school districts some discretion in how non-coordinator employees complete the training, potentially reducing any administrative burden. Additionally, local governments are already required to conduct cybersecurity training, so the AI training may be integrated into existing training structures without substantial new costs​.

Overall, the bill’s fiscal outlook is neutral, with implementation designed to utilize existing training and compliance infrastructures at both the state and local levels. This approach supports a fiscally conservative expansion of digital education requirements, aligning with broader efforts to modernize the state’s workforce without imposing new unfunded mandates.

HB 3512 takes a proactive and practical step toward preparing Texas’s public workforce for the growing presence of artificial intelligence (AI) in government operations. It builds upon the existing cybersecurity training framework by adding a requirement for annual AI literacy training for state and local government employees who regularly use computers. The Department of Information Resources (DIR) is tasked with certifying at least five training programs per year and ensuring consistent standards across agencies.

This bill enhances government efficiency and employee accountability by ensuring that those who use AI tools understand how to apply them effectively and ethically. As more state agencies adopt AI in areas like customer service, data analysis, and cybersecurity, this training will help reduce misuse and improve service delivery. The bill avoids new spending, relying on existing agency capacity, and gives local entities flexibility in how the training is administered.

While the bill does expand the role of DIR and adds a compliance requirement, these changes are modest, well-targeted, and consistent with the state's existing efforts to modernize its digital infrastructure. By improving the digital competency of the government workforce, HB 3512 supports both innovation and responsible governance—key components of limited, effective government. Texas Policy Research recommends that lawmakers vote YES on HB 3512.

• Individual Liberty: The bill requires public employees and officials who use computers to complete AI training annually. While it does not apply to private citizens, it does impose a mandate on individuals in the public sector, limiting their autonomy over professional development. It also gives a state agency (DIR) broad discretion in certifying training content, which raises concerns about compelled exposure to potentially biased viewpoints if guardrails are not in place. On the other hand, the goal of equipping employees with practical knowledge may ultimately empower them to make better, more informed decisions, which can support the exercise of liberty in a digital age.

• Personal Responsibility: The bill reinforces a culture of responsibility by ensuring that public servants using AI are educated in its risks, ethics, and limitations. Requiring training encourages thoughtful and competent use of advanced technologies in taxpayer-funded work. It also reflects the principle that individuals entrusted with public duties should take initiative to stay current on emerging tools.

• Free Enterprise: HB 3512 may have indirect effects on the private sector. While it doesn’t regulate businesses, it does require DIR to certify AI training programs, which could restrict market access if certification is not handled transparently or equitably. However, the bill may also stimulate demand for AI education services and encourage innovation in this field. Its overall effect on enterprise depends on how open the certification process is to a range of providers.

• Private Property Rights: The bill does not directly impact property rights. It is limited to public sector training requirements and does not authorize government action over personal or business property.

• Limited Government: By adding a new, ongoing mandate and expanding DIR’s administrative duties, the bill modestly increases the size and reach of government. Although it avoids new spending and aligns with existing training frameworks, it does represent a step toward greater central oversight of employee education. Without clear limits or sunset provisions, it adds a layer of bureaucratic control, even if well-intentioned.