Texas has emerged as a leader in artificial intelligence, and Dallas is poised to benefit from the tailwinds, AI experts say.

Why it matters: Between Claude, ChatGPT, Gemini and other platforms, AI is driving a major tech transformation that will have generational impacts.

• "I see AI as the enabler, as one of those things which is not good to have anymore — it is required," Aamer Charania, president of the nonprofit Dallas AI, said at an Axios event in downtown Dallas yesterday.

State of play: Texas tends to be business friendly, enabling innovation like AI, Jennifer Sanders, executive director of the North Texas Innovation Alliance, said at the event.

• And Dallas has the space and people to accommodate the infrastructure for AI, Sanders said.

Yes, but: AI tools are still relatively new and don't have many guardrails yet.

• Conservationists are also concerned that data centers, which house AI infrastructure, could threaten Texas' already strained water supply.

What they're doing: Beth Van Duyne (R-Irving), said policies and regulations are necessary for mitigating concerns around data centers' power and water consumption.

• Texas became the third state to adopt a comprehensive AI law, which took effect Jan. 1 and bans harmful AI systems that encourage a person to commit physical self-harm or engage in criminal activity. It also prohibits discrimination, constitutional rights violations and exploitation of minors.
• Meanwhile, organizations such as Dallas AI and the North Texas Innovation Alliance are trying to keep up with AI's rapid transformation while helping companies and workers understand how to use it.
• "When tech transformations happen, people have the time to train themselves to adapt. For this one, there isn't much time," Charania says.

The bottom line: "AI will never take the place of human decision making in shaking a hand and knocking on a door," Van Duyne says.

Go deeper: Watch the event recording to hear what our guests said about deepfakes, AI super PACs and cybersecurity.

👋 Nick here. I'm Axios' publisher, and a Waymo superfan.

• While in town for the event yesterday, I got off Dallas' Waymo wait list and of course had to take one back to my hotel and file a full report for you.

State of the ride: I waited about five minutes for pickup. The .08-mile drive was seven minutes long, costing $11.29.

• The electric car was super clean. I got to sit in the front seat and pick the music, without having to make small talk with a human driver. A win.

Yes, but: The car was a little tentative in traffic around stopped cars and delivery trucks. It also dropped me off on the street in front of the hotel, so I had to exit into traffic (yikes — Dallas drivers are insane).

The bottom line: Waymo's limited coverage area meant I could only take a Waymo from the venue to my hotel nearby, not to lunch in Las Colinas (stay tuned for that report!) or to DFW Airport.

• The hotel trip was a little ridiculous but the future is now and I think self-driving cars are awesome.

Go deeper: Tasha's Waymo experience

🚘 Dallas City Council members rejected a city plan to reroute the traffic connection between North Oak Cliff and downtown and sent staff back to the drawing board. (WFAA)

🏒 The Dallas Stars will play the Minnesota Wild in the first round of the Stanley Cup Playoffs. (DMN)

✈️ Dallas-based Southwest Airlines will soon limit portable lithium chargers to one per passenger. (CBS)

🧺 Take a beat. Check out this night market on Friday for live music, food and shopping. You can bring your own booze and lawn chairs.

• 6-10pm Friday at Richardson's CityLine Plaza. Free.

✄ Let it go. Dispose of sensitive documents you don't need anymore at Comerica Bank's Shred Day DFW. Donations will be accepted for the North Texas Food Bank.

• 8am-3pm Saturday at Mercer Business Park in Dallas. Free.

🚦 Try a new route. NTTA is hosting a kid-friendly day where visitors can learn about the tollway authority's trucks and equipment and participate in STEM activities.

• 9am-1pm Saturday at 5900 W. Plano Parkway in Plano. Free.

🍍 Visit Bikini Bottom. The SpongeBob Musical has two more days left in Fort Worth.

• Saturday and Sunday at Casa Mañana. Tickets start at $19.