Why Mid-Market Companies Can’t Afford to Ignore Governance in AI

Mack
Sep 3
2 min read

When I talk to CEOs of growing companies in Southlake, Dallas, and Fort Worth, one thing becomes clear: AI isn’t a distant future, it’s happening now. And while everyone focuses on innovation, few talk about governance. But make no mistake: governance isn’t a bureaucratic luxury, it’s a growth accelerator; especially in North Texas.

AI Adoption Is Exploding - With Little Guardrails

A recent Dallas Fed survey shows AI tools are being adopted faster than previous major tech waves. Last year, only 38% of Texas businesses used generative or traditional AI and today it’s 59%. That’s almost 60% of firms, many mid-sized, leaning into AI out of necessity or curiosity (Texas Association of Business - How Texas Can Lead the AI Revolution)

This rapid uptake is great until things go wrong. Without clear governance:

Bias in hiring or customer targeting can expose legal risk.
AI systems can unknowingly erode brand trust.
Investors penalize companies that can’t explain how they’re using AI.

Texas Leads with TRAIGA: It’s Not Optional Anymore

On June 22, 2025, Texas passed the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), effective January 1, 2026. It’s not just for tech giants it applies to anyone using AI in the state, including companies deploying third-party tools. (Texas Association of Business- Texas Enacts Responsible AI Governance Act)

TRAIGA prohibits AI systems used intentionally for discrimination, privacy violations, or harm. It also introduces a state-level “regulatory sandbox” and envisions a statewide AI council. This isn’t theoretical noncompliance carries steep penalties, and the clock is already ticking.

Local Example: McLane Co. Goes Big (and Smarts)

Fort Worth-adjacent Temple-based McLane Co., owned by Berkshire Hathaway, recently opened an AI technology hub in Austin. Their 100-person center will drive digital supply chain, data infrastructure, and AI innovation for one of the nation’s largest distribution networks. (Statesman.com- Warren Buffett's McLane Co opens AI tech hub in Austin)

If a distribution giant sees the value in AI, and the need for governance, what does that say for regional leaders? The bar is rising, and mid-market firms must decide whether to lead or fall behind.

Why Governance Drives Growth, Not Blocks It

Here’s the disconnect I see: many leaders still think governance slows things down. In reality, it's exactly what makes fast, scalable growth possible:

Faster Trust Building: With governance, you can deploy AI confidently to clients, partners, and investors.
Better Risk Control: You can prove you’re not targeting, manipulating, or operating in legal gray zones.
Investor Confidence: Governance frameworks translate to higher valuations and readiness for investment or exit.

Final Thought: Don’t Wait Until It’s Mandatory

TRAIGA’s coming. But don’t treat governance as a compliance checkbox. Instead, treat it as your competitive edge. Whether you're streamlining your business operations with AI or designing new products, the companies who succeed will be those who build for scale and responsibility.

If you're ready to build governance-first AI foundations, I’d welcome a conversation.