On behalf of the Texas Association of Business thank you for the opportunity to provide comments on preparing the Texas workforce for the continued growth and adoption of artificial intelligence.
Texas has the opportunity to lead this transition but doing so will require a resilient workforce strategy that moves at the speed of the private sector and gives workers and employers the flexibility to adapt as the technology changes. AI is not simply a technology issue; it is a workforce, economic competitiveness, and opportunity issue.
In most workplaces AI is changing tasks faster than it is replacing entire jobs. That change will increase the value of human judgment, problem-solving, communication, technical expertise, and experience. The competitive divide will increasingly be between workers and businesses that know how to use AI effectively and those that do not.
Texas policy should help more employers and workers participate in the productivity and growth these tools can support. The shift is already underway. In the Federal Reserve Bank of Dallas's May 2026 Texas Business Outlook surveys, two-thirds of responding firms reported using AI, up from roughly 40% two years ago. Among firms already using AI, 76% said it had not changed the number of workers they needed, while 71% reported higher productivity among employees using it.
These results suggest that the immediate workforce challenge is less about widespread job elimination and more about the rapid change in tasks, skills, and hiring needs.
TAB encourages the committee to focus on the following priorities:
Keep employers at the center of workforce planning. Strong workforce systems begin with employer demand and work backward. Industry identifies changing skill needs, educators translate those needs into responsive pathways, and government supports access. Without prescribing technologies or creating programs that cannot keep pace, employers should help define the credentials, apprenticeships, and work-based learning opportunities that public programs support.
Build on programs that already work. Texas has made significant investments in outcomes-based community college funding, the Texas Workforce Commission Skills Development Fund, and Ascend Program, and Technical Education and Local Workforce Partnerships. The state should make these tools flexible enough to support short-term industry-recognized and employer-designed AI training before creating new or duplicative structures.
Expand practical AI literacy across the workforce. AI readiness cannot be limited to computer science programs. Most Texans will not need to build AI systems but they will need to use these tools responsibly and effectively. Students and working adults need adaptable skills that will remain valuable as technology changes, including critical thinking, problem solving, communication, and the ability to evaluate AI-generated information, protect sensitive data, and recognize when human judgment is required. Incumbent workers, managers, frontline employees, and small business owners all need access to practical role-specific training.
Measure results and preserve flexibility. Public AI workforce initiatives should be evaluated based upon whether they help Texans gain relevant skills, secure employment, and increase their earning potential. Because AI tools and employer needs are changing quickly, programs should be flexible enough to adapt without requiring new legislation. Each time the technology evolves, Texas should also avoid prescriptive mandates that discourage responsible AI adoption or impose disproportionate burdens on small and mid-sized employers.
AI-driven growth will also increase demand for skilled trades and technical talent. Electricians, technicians, construction workers, operators, and other skilled professionals are essential to the data centers, energy systems, advanced manufacturing facilities, and communications infrastructure that support the digital economy. Any AI workforce strategy should therefore include both digital skills and the hands-on talent needed to build and operate the infrastructure behind them.
Community colleges, workforce boards, chambers of commerce, and private sector partners can help translate statewide priorities into training that meets regional needs. That local connection matters. The workforce demands of a major metropolitan technology corridor will differ from those of a manufacturing community, an energy-producing region, or a rural small business economy. Texas should set clear goals while allowing local partners and employers to determine the most effective path to reach them.
Texas does not need to choose between innovation and workers. With employer-led training, flexible programs, measurable outcomes, and a regulatory environment that supports responsible adoption, we can expand employment opportunities, help Texans succeed alongside new technology, and strengthen our position as the best state in the nation to invest, build, and grow.
Thank you for your attention to this issue. TAB stands ready to work with the committee, state agencies, educators, and employers as Texas develops its approach.
Editor’s Note: The above letter was penned by Gabriela von zur Muehlen, senior vice president and chief policy officer for the Texas Association of Business, and submitted as written testimony to the Texas Senate Committee on Economic Development on Sept. 22, 2026.
