Texas businesses are navigating rapid changes in technology, workforce needs and the broader economy. A recent update from the Texas Association of Business highlights several developments worth watching as employers prepare for what’s ahead.

AI and the Texas Workforce

Artificial intelligence continues to change the way businesses operate, but the conversation in Texas is increasingly focused on how AI is changing jobs rather than simply replacing them.

During a recent Senate Economic Development Committee hearing, discussion centered on preparing the Texas workforce for increased use of AI. According to information shared by the Texas Association of Business, Dallas Fed survey data shows that two-thirds of responding Texas firms now use AI, compared with roughly 40 percent two years ago.

Among businesses using AI, 76 percent reported no change in the number of workers they need, while 71 percent reported increased productivity.

For employers, that points to an important shift. As technology changes individual tasks, businesses will also need employees who know how to use new tools effectively.

The Texas Association of Business encouraged lawmakers to focus on practical, role-specific AI training while continuing to invest in existing workforce programs. The organization also noted that AI-related growth could increase demand for electricians, technicians, operators and other skilled trades.

Employer-Led Training Takes Center Stage

A major investment announced in Houston provides one example of how businesses and educational institutions can work together to meet future workforce needs.

Eli Lilly recently broke ground on a $6.5 billion pharmaceutical manufacturing facility at Generation Park in northeast Houston. The project is expected to support approximately 4,000 construction jobs and more than 600 permanent positions when it comes online around 2030.

Alongside the investment, Lilly announced a $15 million collaboration with San Jacinto College that includes funding to develop training pathways for advanced manufacturing careers and student scholarships. Industry experts will help develop curriculum and prepare instructors for technician, operator and maintenance roles.

While the project itself is in the Houston area, the approach is relevant across Texas. Partnerships between employers, colleges and workforce organizations can help communities prepare workers for jobs that are changing quickly and build stronger talent pipelines for growing industries.

Texas Economic Trends

The latest update also points to several developments affecting the state's business climate.

The Federal Reserve Bank of Dallas now expects Texas employment to grow 1.2 percent in 2026, representing approximately 173,600 jobs. Year-to-date job growth was reported at 1 percent, while the state's unemployment rate remained at 4.4 percent.

Energy infrastructure is another area to watch. The Senate Business & Commerce Committee is examining transmission planning, construction and ratemaking, grid-enhancing technologies and recent changes to ERCOT's interconnection process.

What This Means for Local Businesses

For businesses in Angelina County, these statewide conversations reinforce something we see here at home: workforce development, technology and infrastructure are becoming more connected.

Businesses of every size are being challenged to think about the skills their employees will need tomorrow, how new technology can improve productivity and where partnerships can help close workforce gaps.

The Lufkin/Angelina County Chamber of Commerce will continue sharing information and resources that help our Investors stay informed about issues affecting the Texas business community and prepare for opportunities ahead.