AI legislation affecting Indiana financial services and insurance
Indiana banks, credit unions, insurance companies, and fintech firms face some of the broadest AI regulation in proposed legislation. Federal bills and Indiana General Assembly proposals cover algorithmic lending, AI-driven underwriting, fraud detection systems, consumer credit decisions, insurance pricing models, and trading algorithms. Indiana's financial services sector, from community banks to large insurance carriers headquartered in Indianapolis, must prepare for explainability mandates and disparate impact testing.
193
Bills Affecting Indiana Financial Services
65
High Risk
Key Compliance Considerations
Indiana lenders using AI-driven credit decisions must make them explainable to consumers under proposed federal rules
Insurance underwriting algorithms used by Indiana carriers face disparate impact testing requirements in pending legislation
Fraud detection systems at Indiana banks and credit unions may need human review processes for flagged transactions
Consumer-facing AI pricing and recommendation engines used by Indiana retailers and financial firms require transparency disclosures
AI Bills Affecting Indiana Financial Services
HR 9734
Rep. Herbert Conaway (D-NJ) introduced this bill to restrict how Medicare Advantage plans use AI to deny prior authorization requests. It would require human clinician review of AI-flagged denials and set new transparency and oversight rules for insurers using algorithms to approve or reject care.
Last action: Jul 16, 2026
HR 6461
Representative Ted Lieu introduced the READ AI Models Act (HR 6461) to require companies developing powerful AI systems to run safety tests and share the results with the government. The bill specifically targets frontier AI models (think GPT-4 level and beyond) and would force developers to test for dangerous capabilities like cyberattacks, bioweapon design, or autonomous replication before release.
Last action: Jun 25, 2026
S 4833
Senator Ed Markey's bill would ban employers from using AI and automated decision systems to make high-stakes employment decisions like hiring, firing, promotions, and discipline without meaningful human oversight. It targets the growing use of algorithmic tools that screen resumes, monitor workers, and rank employee performance. The bill sits in the Senate HELP Committee and would create new federal worker protections around workplace AI.
Last action: Jun 18, 2026
HB 3494
Illinois HB 3494, introduced by Rep. Mary Beth Canty and a large group of Democratic co-sponsors, creates a new Health Data Privacy Act regulating how companies collect, use, and share consumer health data. While the bill text is sparse in the summary provided, similar state laws (like Washington's My Health My Data Act) typically restrict AI-driven health data processing, require explicit consumer consent, and ban the sale of health information without authorization.
Last action: May 30, 2026
SB 3114
Illinois SB 3114, introduced by Sen. Dave Koehler with broad bipartisan support, would require health insurers to disclose when they use AI or algorithms to 'downcode' medical claims (paying providers less than what was billed by reassigning codes). Insurers would have to explain the downcoding decision, identify whether AI was involved, and give providers a way to appeal.
Last action: May 27, 2026
SB 3502
Illinois SB 3502 would make AI developers and deployers legally liable when their products cause harm, treating AI systems similarly to defective physical products. Companies could be sued for damages caused by their AI, with liability potentially extending across the development and deployment chain.
Last action: May 22, 2026
SB 3590
Illinois SB 3590, the AI Product Liability Act, would make AI developers and deployers legally liable when their AI systems cause harm to users or third parties. The bill creates a new cause of action under Illinois law, meaning companies could be sued directly for damages caused by their AI products. It's currently stalled in committee (re-referred to Assignments).
Last action: May 22, 2026
SB 2273
Illinois SB 2273, the Health Data Privacy Act, would create new rules for how companies collect, use, and share consumer health data outside of HIPAA's reach. It targets wellness apps, fitness trackers, telehealth platforms, and any business processing health-related information about Illinois residents, including AI systems that infer health status from consumer data.
Last action: May 22, 2026
HB4248
Illinois HB4248, the Algorithmic Pricing Prohibition Act, would ban 'surveillance pricing,' where companies use a shopper's personal data (browsing history, location, past purchases) to set individualized prices. Introduced by Rep. Maura Hirschauer with 40+ co-sponsors, it has passed one chamber and would let the Attorney General fine violators up to $50,000 per violation.
Last action: May 22, 2026
HB 5756
Illinois HB 5756, introduced by Rep. Maura Hirschauer, would require businesses to disclose when they use algorithms or AI to set prices for consumers. The bill targets dynamic and personalized pricing practices, forcing companies to tell customers when a price was generated by an algorithm rather than a human.
Last action: May 15, 2026
HR 8283
Rep. Bill Huizenga (R-MI) introduced legislation to prevent foreign adversaries, particularly China, from stealing or accessing advanced American AI models. The bill would block companies from exporting AI models above certain capability thresholds to China, Russia, Iran, and North Korea, and requires security reviews before sharing powerful AI systems with any foreign entity.
Last action: Apr 22, 2026
HB 5521
Illinois House Bill 5521, the Biometric Surveillance Act, would regulate how organizations use facial recognition and other biometric identification technologies in public and private spaces. Given Illinois already has the nation's strictest biometric privacy law (BIPA), this bill likely adds new restrictions on surveillance-specific uses like real-time face scanning, retail loss prevention cameras, and workplace monitoring.
Last action: Apr 9, 2026
HB 3567
Illinois HB 3567, introduced by Rep. Murri Briel and a large coalition of House Democrats, would require that consequential decisions made with AI receive 'meaningful human review' rather than being fully automated. The bill targets situations where algorithms make or heavily influence decisions about people (think hiring, lending, housing, benefits) and mandates a real human stay in the loop.
Last action: Mar 27, 2026
SB 3657
Illinois SB 3657 would amend the state's Consumer Fraud Act to regulate algorithmic and dynamic pricing, requiring businesses to disclose when prices are set or personalized using AI or consumer data. The bill targets 'surveillance pricing' practices where retailers and platforms use individual consumer information to set different prices for different shoppers.
Last action: Mar 27, 2026
HR 8094
Rep. Don Beyer (D-VA) introduced legislation requiring companies that develop or deploy large AI models (like GPT-4 or Claude) to publicly disclose detailed information about their AI systems. Companies would need to report training data sources, model capabilities, safety testing results, and energy consumption to a new federal registry within 90 days of deployment.
Last action: Mar 26, 2026
S 4199
Senator Markey (D-MA) introduced a bill that would ban companies from using AI to collect or process personal data from anyone under 17 without explicit consent. The Youth AI Privacy Act specifically targets AI systems that analyze biometric data, predict behavior, or make automated decisions about minors, requiring companies to delete collected data and conduct regular impact assessments.
Last action: Mar 25, 2026
HR 8037
Rep. Baumgartner (R-WA) introduced a bill requiring companies to disclose when they use AI systems trained on data from China, Russia, Iran, or North Korea. Companies would face fines up to $5 million for failing to tell customers about these foreign data sources in their AI products.
Last action: Mar 24, 2026
S 3952
Senator Peters introduced a bill that would create new compliance requirements for companies using AI in high-stakes decisions like hiring, lending, healthcare, and criminal justice. Companies would need to conduct annual bias audits, implement human oversight systems, and publicly disclose when AI makes decisions affecting people's lives.
Last action: Mar 19, 2026
HR 7786
Representative Yvette Clarke introduced HR 7786 to make companies liable when their AI tools are used for fraud. If someone uses AI to create deepfakes, forge documents, or run scams, both the fraudster AND the AI company could face penalties unless the company took reasonable steps to prevent misuse.
Last action: Mar 4, 2026
S 3982
Senator Harris introduced S 3982 to make companies criminally liable when their AI systems are used to commit fraud, even if the company didn't intend the fraud. The bill closes a legal loophole where businesses could claim their AI acted independently, forcing companies to take responsibility for fraudulent outcomes from their automated systems.
Last action: Mar 4, 2026
HB 1271
Indiana's HEA 1271, now Public Law 88, cracks down on AI-driven health insurance claims processing. Insurers can no longer use AI alone to downcode a claim without a human reviewing the patient's medical record, and providers can't submit claims through automated tools without human oversight. Insurers must also disclose when AI is used to deny a prior authorization request or downcode a claim.
Last action: Mar 4, 2026
SB3601
Illinois Senator Steve Stadelman's SB3601 would require any professional licensed by the Illinois Department of Financial and Professional Regulation (think real estate agents, accountants, cosmetologists, contractors) to tell paying clients when they're interacting with AI instead of a human, both verbally and in writing. It also amends Illinois consumer fraud law so that any business using AI in commerce must disclose that fact if a consumer asks. Violations carry civil penalties up to $2,500 each, starting January 1, 2027.
Last action: Feb 5, 2026
HB5323
Illinois Rep. Abdelnasser Rashid's HB5323 would require any company using personalized algorithmic pricing (prices set by algorithms based on your personal data) to display a clear disclosure stating 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA' anywhere that price appears. Violations would be treated as consumer fraud, giving the Illinois Attorney General enforcement power. Insurance companies, banks, and existing subscription discounts are exempt.
Last action: Feb 5, 2026
HB5044
Illinois Rep. Jennifer Gong-Gershowitz introduced a bill that would treat chatbots as 'products' under strict liability law, meaning any company that creates or distributes a chatbot could be sued for user injuries even if they took every reasonable precaution. Users could sue for damages, injunctions, and attorney's fees in state or federal court, with no requirement that they had a direct relationship with the chatbot provider.
Last action: Feb 4, 2026
SB3180
Illinois Senator Rachel Ventura's SB3180 would require any company deploying AI to Illinois residents to get explicit written consent before training AI on user data and keeping that training data indefinitely. Starting January 2027, violators face lawsuits from users ($1,000 to $5,000 per violation plus attorney fees) and enforcement by the Illinois Attorney General under the state's consumer fraud law.
Last action: Feb 2, 2026
HB4717
Illinois Rep. Amy Grant's HB4717 would require any company using algorithms plus personal data to set individualized prices to display a clear disclosure reading 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA' on every offer, ad, or listing. Violations would be treated as deceptive business practices, exposing companies to Illinois Attorney General enforcement. Insurance companies, banks, and existing subscription discounts are exempt.
Last action: Jan 30, 2026
SB2995
Illinois Senator Rachel Ventura's SB2995 would require any business using AI to talk to Illinois consumers (think chatbots, AI voice agents, AI sales tools) to clearly disclose that it's AI, not a human. Businesses would also have to offer a free option to talk to a real human during business hours. Violations would be treated as consumer fraud under Illinois law.
Last action: Jan 29, 2026
SB2906
Illinois Senator Ram Villivalam introduced SB2906, which would let rideshare drivers (Uber, Lyft, etc.) unionize and collectively bargain with rideshare companies over pay, benefits, and deactivation policies. The bill creates a state-supervised sectoral bargaining system run by the Illinois Labor Relations Board and Department of Labor, with antitrust immunity for the resulting agreements.
Last action: Jan 27, 2026
HB4544
Illinois Rep. Eva-Dina Delgado's HB4544 would require any business using AI to set personalized prices based on individual consumer data to display a clear warning: 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.' It also bans using protected class data (race, age, gender, etc.) in algorithmic pricing entirely, with the Illinois Attorney General empowered to seek injunctions and $1,000-per-violation penalties.
Last action: Jan 22, 2026
SB2875
Illinois SB2875, introduced by Sen. Laura Murphy, creates a comprehensive Consumer Data Privacy Act similar to laws in California and Virginia. It gives Illinois residents rights to access, correct, delete, and port their personal data, opt out of targeted advertising and data sales, and challenge AI-driven profiling decisions that affect things like loans, jobs, housing, and healthcare.
Last action: Jan 16, 2026
HB 1421
Indiana House Bill 1421 would completely ban employers from using automated decision systems (like AI hiring software, resume screening tools, or performance evaluation algorithms) to make employment decisions. The bill has just been introduced and sent to the Employment, Labor and Pensions Committee for review.
Last action: Jan 8, 2026
HB1201
Indiana HB1201, introduced by Rep. Elizabeth Rowray and coauthors, would ban AI systems from impersonating or acting as a substitute for a licensed mental health professional. It also tackles insurance reforms like network adequacy audits, reimbursement parity for mental health providers, and limits on retroactive claim audits.
Last action: Jan 5, 2026
HR 6253
Representative Kat Cammack's bill would force large online platforms to disclose when they use algorithms to curate content, ads, or search results, and give users a way to opt out of algorithmic personalization. It targets recommendation systems on social media, search engines, and e-commerce sites, requiring plain-language transparency notices and a non-algorithmic alternative feed or ranking option.
Last action: Dec 11, 2025
HR 6356
Rep. Yvette Clarke (D-NY) introduced legislation requiring companies to audit their AI systems for bias and discrimination before using them to make decisions about people. The bill would give individuals the right to know when AI makes decisions about them and to appeal those decisions to a human.
Last action: Dec 2, 2025
S 3308
Senator Ed Markey (D-MA) introduced a sweeping federal bill that would regulate how companies use AI in consequential decisions like hiring, lending, housing, healthcare, and education. It requires pre-deployment bias testing, independent audits, human review of AI decisions, and bans certain uses like emotion recognition in workplaces and schools.
Last action: Dec 2, 2025
HR 6361
Rep. Greg Landsman (D-OH) introduced this bill to prohibit Medicare Advantage plans and Medicare providers from using AI or algorithms as the sole basis to deny, reduce, or terminate coverage for beneficiaries. A human clinician would need to make the final call on coverage denials, not an automated system.
Last action: Dec 2, 2025
S 3108
Senator Robert Casey Jr. introduced the AI-Related Job Impacts Clarity Act (S 3108), which would require companies to tell the government before using AI in ways that could affect jobs. Companies planning to deploy AI systems that might automate work or change employment would need to file advance notices with the Department of Labor, explaining how many workers could be affected and what support they'll provide.
Last action: Nov 5, 2025
S 2938
Senator Cantwell introduced the Artificial Intelligence Risk Evaluation Act, which would require companies developing AI systems to conduct safety evaluations before release and report critical failures to the government. The bill creates a new federal office to oversee AI safety and gives regulators power to investigate AI incidents, similar to how the NTSB investigates plane crashes.
Last action: Sep 29, 2025
HR 5511
Rep. Yvette Clarke (D-NY) introduced legislation requiring companies to conduct impact assessments before deploying AI systems that could affect consumers. The bill would give the FTC power to enforce these assessments and create a public registry of high-impact AI systems, marking the first major federal attempt to regulate commercial AI use across industries.
Last action: Sep 19, 2025
HR 4695
Representative Ted Lieu introduced HR 4695 to restrict how companies and government agencies use facial recognition technology. The bill would require businesses to get explicit consent before scanning faces, ban certain uses like emotion detection in hiring, and give people the right to opt out of facial recognition systems.
Last action: Jul 23, 2025
S 2367
Senator Durbin introduced S 2367, which would require companies using AI for important decisions (like hiring, lending, or healthcare) to explain how their AI works and prove it doesn't discriminate. Companies would need to conduct regular audits of their AI systems, tell people when AI makes decisions about them, and let people opt out of certain AI decisions.
Last action: Jul 21, 2025
S 2164
Senator Ron Wyden (D-OR) introduced the Algorithmic Accountability Act of 2025, which would require companies using AI and automated decision-making systems to conduct impact assessments and document how their algorithms work. The bill targets businesses using AI for critical decisions like hiring, lending, healthcare, and housing, forcing them to evaluate their systems for bias, discrimination, and privacy risks before deployment.
Last action: Jun 25, 2025
SB 1425
Illinois Senator Laura Fine's SB 1425 would regulate how health insurers use AI and automated decision systems for coverage decisions like prior authorizations, claims denials, and medical necessity determinations. Insurers would need to ensure a qualified human (not just an algorithm) makes final adverse decisions, and the Department of Insurance would gain audit authority over these AI tools.
Last action: Apr 11, 2025
SB 50
Illinois SB 50 would require online platforms likely to be accessed by minors to design their services with kids' safety and privacy as the default. It targets algorithmic recommendations, data collection, and design features (like autoplay and infinite scroll) that can harm young users, modeled after similar laws in California and the UK.
Last action: Apr 11, 2025
SB 52
Illinois SB 52, the Privacy Rights Act, would create a comprehensive consumer data privacy framework similar to California's CCPA, giving Illinois residents rights to access, delete, and opt out of the sale of their personal data. It also includes specific provisions on automated decision-making and profiling, meaning AI systems that make consequential decisions about consumers would face new transparency and opt-out requirements. The bill is currently stalled in Senate committee after an amendment.
Last action: Apr 11, 2025
HB3021
Illinois HB3021, introduced by Rep. Abdelnasser Rashid, would make it illegal under the state's Consumer Fraud Act to use chatbots, AI agents, or voice AI in customer interactions without clearly telling consumers they are talking to a machine, not a human. If passed, it takes effect January 1, 2026.
Last action: Feb 6, 2025
S 321
Senator Josh Hawley (R-MO) introduced this bill to sever U.S. AI development from China by banning imports of AI tech from China, blocking American investment in Chinese AI, and restricting research collaboration. Violators face steep civil and criminal penalties, including up to 20 years in prison and $1 million in fines for individuals.
Last action: Jan 29, 2025
S 232
Senator Amy Klobuchar's bill would ban companies from using pricing algorithms that share competitor data to coordinate prices, treating this as illegal collusion under antitrust law. It also forces companies using pricing algorithms to disclose that fact, gives the FTC audit authority, and would specifically target algorithmic rent-setting tools like RealPage that landlords use.
Last action: Jan 23, 2025
SB0124
Illinois Senator Javier Cervantes introduced the Motor Vehicle Insurance Fairness Act, which would ban auto insurers from using 16 rating factors (including credit scores, ZIP codes, gender, age, occupation, and education) when setting premiums. Insurers would also have to prove their algorithms and models do not disparately impact protected groups, get prior approval for rate changes, and pay a 0.05% premium fee to fund enforcement.
Last action: Jan 17, 2025
SB0051
Illinois Senator Sue Rezin's SB0051 would require any business running an online service likely to be used by anyone under 18 to complete data protection impact assessments, turn on high-privacy defaults, and stop profiling kids or using dark patterns. Violations could cost $2,500 per child for negligence or $7,500 per child for intentional violations, enforced by the Illinois Attorney General.
Last action: Jan 13, 2025
HB1252
Illinois Rep. Will Guzzardi's HB1252 (the Motor Vehicle Insurance Fairness Act) would ban auto insurers from using 16 factors like credit scores, ZIP codes, gender, age, occupation, education, and homeownership when setting rates or deciding whom to insure. Insurers would also need to prove their algorithms and models don't discriminate against protected groups, and every rate change would require state approval with public hearings.
Last action: Jan 10, 2025
HB 5918
Illinois Rep. Bob Morgan's HB 5918 would regulate how health insurers use AI and algorithms to make coverage decisions, likely requiring human oversight on claim denials and prior authorizations. The bill is currently in the Rules Committee and targets one of the most controversial uses of AI in healthcare: automated denial of patient claims.
Last action: Jan 4, 2025
HB 4093
Illinois Rep. Ann Williams and 18 co-sponsors introduced the Health Data Privacy Act to regulate how companies collect, use, and share consumer health data outside of HIPAA's reach (think period-tracking apps, wellness wearables, and mental health platforms). The bill would require explicit consumer consent before processing health data and give Illinois residents new rights to access and delete their information.
Last action: Apr 19, 2024
HB 4869
Illinois Representatives Hoan Huynh, Norma Hernandez, and Kevin Olickal introduced HB 4869 to amend the state's Consumer Fraud and Deceptive Business Practices Act, requiring businesses to disclose when they use AI in consumer-facing interactions. The bill targets undisclosed AI use in customer service, marketing, and sales communications. It's currently stalled in the Rules Committee.
Last action: Apr 5, 2024
SB 150
Indiana's SB 150, now signed into law, requires companies using AI in high-stakes decisions (like hiring, lending, or healthcare) to conduct regular bias audits and provide clear explanations when AI affects people's lives. The law creates new compliance requirements for businesses using AI tools, with penalties for companies that don't properly test their systems or notify customers about AI use.
Last action: Mar 13, 2024
SB 3080
Illinois SB 3080 would create a new health data privacy law regulating how companies collect, use, and share consumer health information outside of HIPAA's reach, including data from wellness apps, fitness trackers, and online health searches. It would require explicit consumer consent, restrict geofencing around healthcare facilities, and give consumers rights to access and delete their health data.
Last action: Feb 2, 2024
HB 3603
Illinois Rep. Ann Williams and 24 co-sponsors introduced the PROTECT Health Data Act (HB 3603) to tighten how companies collect, share, and sell consumer health data in Illinois. While the bill description is sparse, similar 'protect health data' frameworks in other states restrict tracking of reproductive health, mental health, and biometric data, and often limit AI/algorithmic processing of that data without consent.
Last action: Aug 17, 2023
SB 452
Indiana just passed SB 452 to regulate how banks and lenders use AI in credit decisions. The law requires financial institutions to explain AI-driven loan denials and conduct regular fairness audits of their automated credit scoring systems.
Last action: May 4, 2023
SB 468
Indiana has updated its commercial code to address AI and other automated systems in business transactions. The bill, signed into law, creates new rules for when AI systems can form contracts and make business decisions, and clarifies liability when AI systems malfunction or make errors.
Last action: May 4, 2023
SB 5
Indiana's SB 5 creates comprehensive consumer data privacy rules similar to California's CCPA and Europe's GDPR. The law gives Indiana residents rights to access, delete, and opt out of the sale of their personal data, while requiring businesses that collect data from Indiana residents to implement specific privacy practices and safeguards.
Last action: May 1, 2023
HB 1563
Indiana HB 1563 would regulate how businesses and government agencies can use facial recognition software. Representative sponsors are pushing this bill through the Roads and Transportation Committee (an unusual committee assignment that may signal focus on transportation-related uses). The bill would likely create new restrictions and requirements for any organization using facial recognition technology in Indiana.
Last action: Jan 19, 2023
SB 358
Senator Freeman's SB 358 requires businesses to get explicit consent before using AI to analyze consumer data in Indiana. Companies would need to tell customers exactly how AI processes their information, let them opt out, and delete data on request. This brings GDPR-style data rights specifically to AI systems.
Last action: Feb 17, 2022
HB 1261
Indiana HB 1261 would create a comprehensive consumer data privacy law, giving residents rights to access, delete, and opt out of the sale of their personal data. The bill requires businesses that collect data on Indiana residents to provide privacy notices and honor consumer requests, similar to laws in California and other states.
Last action: Jan 10, 2022
SB 576
Indiana's SB 576 would ban employers from using AI systems that scan faces or voices during hiring unless they tell candidates first and get written consent. The bill, currently in committee, creates new rules for any company using AI-powered video interviews or voice analysis tools to screen job applicants.
Last action: Jan 14, 2019
HB 1540
Indiana HB 1540 creates new rules for healthcare professionals using AI to make medical decisions. The bill requires doctors, nurses, and other licensed healthcare providers to disclose when they use AI tools for diagnosis or treatment recommendations, and makes them legally responsible for any AI-generated medical advice they provide to patients.
Last action: Apr 26, 2017
HR 9757
Rep. Mariannette Miller-Meeks (R-IA) introduced HR 9757, the Conversational AI Services Act, which would establish federal rules for chatbots and conversational AI systems (think ChatGPT-style assistants, customer service bots, and voice agents). The bill sits in the House Energy and Commerce Committee and would likely require clear disclosure when consumers are interacting with AI rather than a human.
Last action: Jul 16, 2026
HR 9706
Rep. Josh Gottheimer (D-NJ) introduced this bill to require facial recognition or similar age-verification technology in certain settings to protect children, likely targeting online platforms and age-restricted product sales. It has been referred to House committees but is still in early stages with no committee vote yet.
Last action: Jul 15, 2026
HR 9715
Rep. David Schweikert (R-AZ) introduced this bill to explicitly allow the use of artificial intelligence in arbitration proceedings. It would greenlight AI tools acting as arbitrators or assisting in dispute resolution, a practice currently in legal gray area under federal arbitration law.
Last action: Jul 15, 2026
HR 9619
Rep. Valerie Foushee (D-NC) introduced this bill to require AI chatbot providers (think ChatGPT, Claude, Gemini, and customer service bots) to protect user data and follow specific privacy and security rules. It targets how chatbots collect, store, and use consumer information during conversations.
Last action: Jul 9, 2026
HR 8893
Rep. Valerie Foushee (D-NC) introduced this bill to require NIST to develop standards for identifying AI-generated content and detecting deepfakes, particularly synthetic audio, video, and images that could deceive consumers. It directs federal agencies to create guidelines for watermarking and content provenance, pushing platforms and AI developers toward clearer disclosure of synthetic media.
Last action: Jul 7, 2026
SB 343
Illinois SB 343, sponsored by Senator Napoleon Harris and colleagues, has passed both chambers and is heading to the Governor's desk. The bill amends Illinois civil law provisions related to technology, though the specific AI regulatory scope is not detailed in the available text. Business leaders in Illinois should track this closely given its advanced status.
Last action: Jun 30, 2026
HR 9477
Rep. Nathaniel Moran (R-TX) introduced this bill to create a federal system for reporting serious AI incidents, meaning cases where AI systems cause harm, malfunction, or produce dangerous outputs. It would require AI developers and deployers to notify the government when their systems cause specified harms, similar to how airlines report safety incidents.
Last action: Jun 25, 2026
HR 9371
Rep. Suhas Subramanyam (D-VA) introduced a bill requiring companies to tell customers when they're using AI or algorithms to set personalized prices based on individual data. If a retailer charges you $50 for a product while charging your neighbor $40 based on browsing history or location, they'd have to disclose that practice upfront.
Last action: Jun 23, 2026
S 4825
Senator Bernie Sanders introduced this bill to slap a new federal excise tax on 'systemically important AI activity,' which is his way of taxing the biggest AI players (think frontier model developers like OpenAI, Google, and Anthropic). It uses the tax code rather than direct regulation to discourage large-scale AI deployment and likely fund worker or social programs.
Last action: Jun 18, 2026
HR 9352
Rep. Steven Horsford (D-NV) introduced this bill to require employers to disclose when AI is used in decisions that affect workers, including hiring, firing, promotions, and job restructuring. It aims to give workers and regulators clearer visibility into how AI is reshaping employment before layoffs or reassignments happen.
Last action: Jun 18, 2026
S 4743
Senator Elizabeth Warren introduced this bill to force public companies and large private AI firms to disclose more about their AI-related financial exposure, including revenue concentration, circular financing deals between AI companies, and infrastructure spending. The goal is to give regulators and investors visibility into whether the AI sector is forming a financial bubble similar to the dot-com era.
Last action: Jun 10, 2026
HR 9125
Rep. Sara Jacobs (D-CA) introduced the Sectoral AI Governance Act of 2026, which would assign AI oversight to existing federal agencies based on the sector where AI is used (think FDA for medical AI, EEOC for hiring AI) rather than creating one new mega-regulator. The bill is sitting in the House Judiciary and Oversight Committees, so nothing is law yet, but it signals where federal AI rules are heading.
Last action: Jun 3, 2026
SB 3890
Illinois SB 3890 would overhaul the state's consumer data privacy framework, creating new rules for how companies collect, use, and share personal data, including data fed into AI systems. The bill is currently stalled in committee (re-referred to Assignments under Rule 3-9(a)), meaning it has not advanced to a floor vote.
Last action: May 22, 2026
SB 3571
Illinois Senator Mike Simmons and colleagues want to update the state's WARN Act to require employers to disclose when AI or automation is the reason for mass layoffs. Companies conducting large-scale job cuts driven by AI would face new notification requirements beyond the existing 60-day advance notice rule.
Last action: May 22, 2026
SB 3261
Illinois Senator Mary Edly-Allen and 11 co-sponsors introduced SB 3261, the Artificial Intelligence Safety Act, which aims to create safety guardrails around AI systems developed or deployed in Illinois. The bill is currently stalled in committee (re-referred to Assignments), so the specific provisions have not yet advanced to active debate.
Last action: May 22, 2026
SB 3312
Illinois SB 3312, the AI Safety Measures Act, would establish state-level safety requirements for AI systems developed or deployed in Illinois. The bill is currently stalled in committee after being re-referred to Assignments, meaning it has not advanced and faces procedural hurdles before any vote.
Last action: May 22, 2026
SB 3220
Illinois SB 3220 would expand the state's consumer data privacy framework, adding new rules around how businesses collect, use, and share personal data, including data processed by AI systems. It's currently stuck in committee after being re-referred to Assignments, so it hasn't advanced to active debate.
Last action: May 22, 2026
SB 3816
Illinois SB 3816, introduced by Senators Celina Villanueva and Graciela Guzmán, regulates how automated license plate recognition (ALPR) systems can be used in the state. The bill restricts data sharing and retention by law enforcement and private operators of camera networks that scan and store license plate data.
Last action: May 22, 2026
SB 3364
Illinois SB 3364 would prohibit the use of AI systems that violate civil or human rights, creating a new cause of action against companies deploying discriminatory AI. The bill is currently stalled in committee with a Senate Committee Amendment under Rule 3-9(a), meaning it's been re-referred to Assignments.
Last action: May 22, 2026
SB 3444
Illinois SB 3444, introduced by Senator Bill Cunningham, aims to regulate the safety of AI models developed or deployed in Illinois. The bill is currently stalled in committee (re-referred to Assignments), so specific requirements aren't finalized, but it signals Illinois intends to join California and Colorado in setting AI model safety standards.
Last action: May 22, 2026
HB 4705
Illinois House Bill 4705, introduced by Rep. Dan Didech and a group of Democratic co-sponsors, is an 'Artificial Intelligence Safety' bill currently in its earliest stage with limited public detail available. Based on the title and Illinois's recent AI legislative trends, it appears aimed at establishing safety standards for AI systems deployed in the state, though specific provisions have not yet been published.
Last action: May 8, 2026
HB 4735
Illinois HB 4735, the Transparency in Downcoding Act, targets the practice of 'downcoding' in healthcare billing, where insurers or their AI tools reduce the billing code submitted by a provider to a lower-paying one. The bill would force health insurers to disclose when and how they downcode claims, including any algorithms or AI systems used to make those decisions.
Last action: May 5, 2026
HR 8479
Rep. Valerie Foushee (D-NC) introduced this House bill to crack down on deceptive AI-generated content, particularly deepfakes and synthetic media that could mislead consumers. It would direct NIST to develop standards for identifying and labeling AI-generated content, and require platforms and creators to disclose when content is synthetic.
Last action: Apr 23, 2026
HB 4980
Illinois Rep. Abdelnasser Rashid and 20 co-sponsors introduced the Human Control of AI Act, which would require meaningful human oversight of AI systems used in consequential decisions. The bill is currently parked in the Rules Committee, meaning it has not advanced but signals where Illinois Democrats want to take AI regulation.
Last action: Apr 17, 2026
HB 5151
Illinois HB 5151 regulates how police and other entities use automatic license plate recognition (ALPR) systems, which are cameras that scan and log license plates. The bill would restrict how long ALPR data can be stored, who can access it, and what it can be used for. It's currently stuck in the Rules Committee, meaning it's not moving forward right now.
Last action: Apr 17, 2026
HB 4987
Illinois HB 4987 would restrict employers from using surveillance data and AI-driven algorithms to set or adjust individual worker wages. The bill targets 'algorithmic wage discrimination,' where companies use real-time data collected from workers (location, productivity metrics, behavior) to personalize pay rates. It's currently stalled in the Rules Committee.
Last action: Mar 27, 2026
HB 4985
Illinois Rep. Nabeela Syed's HB 4985 would ban 'surveillance-based pricing,' the practice of using personal data (like browsing history, location, or demographics) to charge different customers different prices for the same product. The bill targets dynamic pricing algorithms that adjust prices based on individual consumer profiles rather than market conditions. It's currently stalled in the Rules Committee.
Last action: Mar 27, 2026
HB 3041
Illinois Rep. Abdelnasser Rashid introduced HB 3041, a comprehensive data privacy bill that would regulate how companies collect, use, and share consumer data, including data used to train and operate AI systems. The bill has stalled in the Rules Committee, but if revived, it would create new consumer rights (access, deletion, opt-out) and impose obligations on businesses handling Illinois residents' data.
Last action: Mar 27, 2026
HB 5231
This Illinois bill (HB 5231) targets Automated License Plate Readers (ALPRs), the camera systems that scan and log vehicle plates on roads, in parking lots, and on police cars. It would regulate how ALPR data gets collected, stored, shared, and used by law enforcement and private operators in Illinois. The bill is currently parked in the Rules Committee.
Last action: Mar 27, 2026
HB 4988
Illinois HB 4988 amends the state's criminal fraud statutes to specifically address fraud committed using artificial intelligence tools like deepfakes, voice cloning, and AI-generated content. The bill is currently stalled in the Rules Committee, meaning it has not advanced to substantive debate.
Last action: Mar 27, 2026
HR 8031
Representative Boebert introduced HR 8031 to repeal Biden's Executive Order on AI that established federal AI safety standards and oversight requirements. The bill would eliminate current federal AI governance frameworks, removing requirements for federal agencies to assess AI risks and for companies to report on their AI development activities.
Last action: Mar 20, 2026
S 4113
Senator Elissa Slotkin (D-MI) introduced the AI Guardrails Act to force federal agencies to set safety rules for AI systems before they can deploy them. The bill requires agencies to identify risks, establish testing procedures, and create ways to shut down AI systems that go wrong, with the Department of Defense and intelligence agencies mostly exempt.
Last action: Mar 17, 2026
S 4098
Senator Ted Budd (R-NC) introduced the Artificial Intelligence-Ready Data Act to create federal guidelines for how businesses prepare and manage data used in AI systems. The bill would establish new requirements for data quality, documentation, and transparency when companies use data to train or operate AI tools, affecting any business that develops or deploys AI systems.
Last action: Mar 16, 2026
HR 7576
Representatives Beyer and Obernolte introduced HR 7576 to create AI workforce training programs through tax credits. Companies that train workers in AI skills would get tax breaks, and the bill establishes government programs to help workers whose jobs are displaced by AI automation.
Last action: Feb 13, 2026
HB 4799
Illinois HB 4799, the AI Safety Measures Act, is sitting in the Rules Committee with limited public detail available so far. Based on its title, it aims to establish baseline safety requirements for AI systems used or deployed in Illinois, though the specific obligations have not yet been made public.
Last action: Feb 6, 2026
SB 3564
Illinois SB 3564, the POLICE-FACIAL RECOGNITION ACT, would regulate how law enforcement agencies in Illinois use facial recognition technology. While aimed at police, it directly affects the vendors that sell facial recognition software and the businesses that share data or video feeds with law enforcement.
Last action: Feb 5, 2026
SB3257
Illinois Senator Laura Murphy's SB3257 updates the state's rules on automated license plate readers (ALPRs), redefining them to explicitly include camera systems using computer algorithms and setting strict retention limits: records must be archived after 90 days, require agency head approval to access after that, and be destroyed after 5 years. The bill also blocks out-of-state agencies from searching archived records older than 90 days.
Last action: Feb 3, 2026
HR 7270
Rep. Pete Sessions (R-TX) introduced this bill to combat identity fraud and identity theft, likely targeting AI-enabled synthetic identity schemes and deepfake-driven financial fraud. The bill is in early committee review across Oversight, Financial Services, and Energy and Commerce, so specifics on AI verification requirements remain undefined.
Last action: Jan 27, 2026
S 3680
Senator Ed Markey (D-MA) introduced this bill to require federal agencies that use AI systems to test them for bias, appoint civil rights officers to oversee AI use, and be transparent about how algorithms make decisions affecting the public. It targets government use of AI, not private companies directly, but sets standards that could ripple into federal contracting requirements.
Last action: Jan 15, 2026
HR 7110
Rep. Summer Lee's bill would require federal agencies to root out bias in any AI systems they use or fund, mandating civil rights reviews, bias testing, and public transparency. It targets algorithms used in federal decisions like benefits, housing, law enforcement, and hiring, and would create new oversight requirements before agencies can deploy AI.
Last action: Jan 15, 2026
HR 5388
Rep. Michael Baumgartner (R-WA) introduced this bill to establish federal uniformity over AI regulation, likely preempting the patchwork of state AI laws emerging in places like California, Colorado, and New York. If passed, it would centralize AI rules at the federal level and position the US to lead globally on AI standards.
Last action: Dec 19, 2025
S 3495
Senator Amy Klobuchar's bill targets AI-generated scams by directing the FTC to crack down on fraudsters who use AI tools like voice cloning, deepfakes, and chatbots to impersonate people or businesses. It would expand FTC enforcement authority and likely require platforms and AI vendors to help identify and prevent AI-enabled fraud schemes.
Last action: Dec 16, 2025
HR 6646
Rep. Pramila Jayapal (D-WA) introduced this bill to give app-based workers (think Uber drivers, DoorDash couriers, Instacart shoppers) stronger labor protections while they remain classified as independent contractors. It would establish portable benefits, anti-discrimination rules, and collective bargaining rights for gig workers, though the AI angle is minimal unless algorithmic management provisions are included in the final text.
Last action: Dec 11, 2025
S 3354
Senator John Curtis (R-UT) introduced the QUIET Act to address AI-generated robocalls and deepfake voice scams. The bill would require disclosure when AI is used to generate voices or content in phone calls and other communications, targeting the rising fraud problem where scammers clone voices to impersonate family members, executives, or officials.
Last action: Dec 4, 2025
HR 6371
Rep. Suzanne Bonamici's No Robot Bosses Act would restrict employers from relying solely on automated decision systems (like AI resume screeners, productivity trackers, and firing algorithms) to make employment decisions. It requires human oversight, disclosure to workers, and independent audits before these tools can be used in hiring, firing, promotion, or discipline.
Last action: Dec 3, 2025
S 3312
Senator Gary Peters (D-MI) introduced this bill to prepare the U.S. for the shift to quantum computing, which threatens to break today's encryption standards. It would fund quantum research, workforce development, and push federal agencies to adopt quantum-resistant cybersecurity measures.
Last action: Dec 2, 2025
HR 6266
Rep. Mike Kennedy (R-UT-3) introduced the Algorithm Accountability Act, which sits in the House Energy and Commerce Committee. Based on its title and referral, the bill aims to impose transparency and accountability requirements on companies deploying algorithmic and AI systems, likely targeting automated decision-making that affects consumers.
Last action: Nov 21, 2025
S 3193
Sen. John Curtis (R-UT) introduced the Algorithm Accountability Act, which targets how companies use algorithms and AI systems to make consequential decisions about consumers. The bill sits in the Senate Commerce Committee and would likely require businesses to assess and document the impact of their automated decision-making tools in areas like credit, housing, employment, and healthcare.
Last action: Nov 18, 2025
HR 5885
Rep. John Moolenaar's GAIN AI Act would require advanced AI chip makers like Nvidia and AMD to prioritize American customers before exporting cutting-edge chips to foreign buyers, particularly China. The bill aims to ensure US companies get first dibs on scarce high-end AI hardware amid global supply constraints.
Last action: Oct 31, 2025
S 2937
Senator Thom Tillis introduced the AI LEAD Act to regulate how federal agencies use AI systems. The bill requires agencies to tell Congress before buying or using AI, sets up testing requirements to catch problems before deployment, and creates new oversight rules with real penalties if agencies mess up their AI implementations.
Last action: Sep 29, 2025
HR 5288
Rep. Eugene Vindman (D-VA) introduced the AI Sovereignty Act, a federal bill focused on protecting US leadership in artificial intelligence. Currently in early committee review across Foreign Affairs, Energy and Commerce, and Science committees, the bill likely addresses export controls, foreign investment restrictions, and national security safeguards around AI technology, though specific provisions are not yet public.
Last action: Sep 10, 2025
HR 5045
Rep. Ted Lieu (D-CA) introduced the HEALTH AI Act, which would establish federal oversight of artificial intelligence used in healthcare settings like clinical decision-making, diagnostics, and patient care. The bill is currently in the House Energy and Commerce Committee and aims to set safety, transparency, and validation standards for medical AI tools.
Last action: Aug 26, 2025
HR 4873
Rep. Jimmy Patronis (R-FL) introduced HR 4873 to turn Biden's Executive Order 14319 into permanent law, which requires federal agencies to avoid using AI systems that show bias based on race, gender, or other protected characteristics. The bill would make it illegal for any federal agency to use AI tools that discriminate in hiring, benefits distribution, or service delivery.
Last action: Aug 5, 2025
HR 4640
Rep. Greg Casar (D-TX) introduced this bill to ban companies from using AI algorithms to set prices or wages in ways that could amount to collusion or exploitation. It would treat algorithmic price-setting and wage-setting that uses competitor data as a form of illegal coordination, even without a traditional agreement between companies.
Last action: Jul 23, 2025
HR 4628
Rep. Yassamin Ansari (D-AZ) introduced this bill to make AI-powered impersonation (think deepfake voices, faces, or likenesses used to defraud or deceive) explicitly illegal at the federal level. It targets bad actors who use generative AI to mimic real people for scams, fraud, or misinformation. The bill sits in the House Judiciary Committee and has not yet advanced.
Last action: Jul 23, 2025
S 2081
Senator Cynthia Lummis (R-WY) introduced the RISE Act of 2025, which addresses liability for AI developers when their models are used by professionals like doctors, lawyers, and financial advisors. The bill would grant AI developers civil liability protection if they publicly disclose model specifications, training data characteristics, and known limitations, shifting responsibility to the licensed professionals who deploy these tools.
Last action: Jun 12, 2025
HR 3460
Rep. Jay Obernolte (R-CA) introduced this federal bill to protect employees at AI companies who report safety concerns or violations to the government. It would shield workers from retaliation (firing, demotion, harassment) when they blow the whistle on AI-related risks, similar to existing protections in finance and healthcare.
Last action: May 15, 2025
S 1638
Senator Bill Cassidy (R-LA) introduced a bill that would restrict U.S. businesses and government agencies from using AI systems developed by companies based in foreign adversary nations like China, Russia, Iran, and North Korea. Think of it as an export-controls-style crackdown, but for AI models like DeepSeek. It sits in the Senate Commerce Committee awaiting review.
Last action: May 7, 2025
SB 2203
Illinois SB 2203 would regulate 'automated decision tools' used to make consequential decisions about people, things like hiring, lending, housing, healthcare, and education. Companies deploying these AI systems would need to conduct impact assessments, notify affected individuals, and avoid algorithmic discrimination. The bill is currently stuck in committee (re-referred to Assignments under Rule 3-9(a)), meaning it has stalled but is not dead.
Last action: Apr 11, 2025
SB 1792
Illinois SB 1792 amends the state's criminal fraud statutes to explicitly cover fraud committed using artificial intelligence, including deepfakes and AI-generated impersonations. It would let prosecutors charge AI-enabled scams (like voice cloning for wire fraud or synthetic identity fraud) under existing fraud laws with potentially enhanced penalties.
Last action: Apr 11, 2025
SB 1554
Illinois SB 1554, sponsored by Senator Meg Loughran Cappel, amends the state's Criminal Code to address artificial intelligence. The bill is currently stalled in committee (re-referred to Assignments under Rule 3-9(a)), meaning it has not advanced and specific provisions are not publicly detailed.
Last action: Apr 11, 2025
HB 3720
Illinois Rep. Abdelnasser Rashid introduced HB 3720 to require 'meaningful human review' when AI systems make consequential decisions about people. The bill targets automated decision-making in areas like employment, housing, credit, and government benefits, ensuring a real person (not just a rubber stamp) reviews AI outputs before they affect someone's life. It's currently stalled in the Rules Committee.
Last action: Mar 21, 2025
HR 1027
Rep. Eric Sorensen (D-IL-17) introduced the QUIET Act, which stands for Quashing Unwanted and Interruptive Electronic Telecommunications. The bill targets AI-generated robocalls and deepfake voice scams by requiring clear disclosure when AI is used in phone calls and text messages, and it strengthens penalties for scammers using voice-cloning technology to impersonate real people.
Last action: Feb 6, 2025
HB 1620
Indiana Representative King introduced HB 1620, requiring healthcare providers to tell patients when they use AI in medical decisions. If a doctor, hospital, or insurance company uses AI to diagnose you, recommend treatment, or decide coverage, they must disclose this to patients in writing.
Last action: Jan 21, 2025
HR 334
Rep. Rick Allen (R-GA) introduced this bill to amend the Communications Act of 1934, requiring the FCC to set technical and procedural standards for AI-generated voice systems used in phone calls. It targets the growing problem of AI voice clones and synthetic robocalls by mandating disclosure and authentication rules for generative AI voices.
Last action: Jan 13, 2025
HR 238
Rep. David Schweikert (R-AZ-1) introduced the Healthy Technology Act of 2025, a very short bill that would let artificial intelligence and machine learning technology qualify as a 'practitioner' eligible to prescribe drugs, as long as it's authorized by state law and approved by the FDA. In practice, this would open the door for AI systems to legally prescribe medications in the United States for the first time.
Last action: Jan 7, 2025
HB 5848
Illinois HB 5848, introduced by Rep. Janet Yang Rohr and nine co-sponsors, would expand the state's school bullying definition to explicitly include AI-generated deepfakes (think fake nude images or fabricated videos of students). Schools would have to treat deepfake harassment as bullying under existing anti-bullying policies, triggering investigation and discipline procedures.
Last action: May 15, 2024
HB 3338
Illinois HB 3338 (SAFE PATIENT LIMITS) sets mandatory nurse-to-patient staffing ratios in hospitals and restricts how hospitals can use AI or algorithmic tools to determine staffing levels or override nurse clinical judgment. It targets workforce management software that healthcare systems increasingly rely on to schedule nurses and predict patient acuity.
Last action: Apr 24, 2024
HB 3385
Illinois Rep. Abdelnasser Rashid introduced HB 3385, a broad data privacy and protection bill currently stalled in the Rules Committee. While the full text details aren't available, the bill appears to establish consumer data privacy rights similar to laws in California and other states, which would directly affect how businesses collect, store, and use personal data including data fed into AI systems.
Last action: Apr 5, 2024
HB 5649
Illinois Rep. Abdelnasser Rashid's HB 5649 directs the Department of Financial and Professional Regulation to regulate the use of AI in delivering mental health services. The bill aims to set guardrails on how therapy chatbots, AI counseling tools, and similar products can be used with patients in Illinois. It's currently stuck in the Rules Committee.
Last action: Apr 5, 2024
SB 2847
Illinois SB 2847, introduced by Sen. Meg Loughran Cappel, would amend the state criminal code to address artificial intelligence, likely targeting harmful AI uses such as deepfakes or AI-assisted crimes. The bill is currently stalled in committee after being re-referred to Assignments, meaning it has not advanced to active consideration.
Last action: Mar 15, 2024
HB 1554
HB 1554, introduced in Indiana, aims to protect consumer data privacy. The bill would likely create new requirements for businesses that collect and use personal data, similar to laws in other states like California and Virginia. Without the full bill text, specific requirements and scope remain unclear.
Last action: Jan 19, 2023
S 5061
Senator Mark Warner (D-VA) introduced this bill to create a federal system for tracking AI security incidents and vulnerabilities, similar to how we track cybersecurity threats today. It would task federal agencies (likely NIST and CISA) with building processes to collect, analyze, and share information about AI safety failures and security risks. The bill sits in the Commerce Committee and does not yet impose direct requirements on private companies.
Last action: Jul 21, 2026
S 5055
Senator Mark Warner (D-VA) introduced this bill to create a National Workforce Transition Board that would fund training and education for workers displaced by AI and emerging tech. It's an advisory and grant-making body, not a regulatory one, so it doesn't impose new rules on how companies use AI.
Last action: Jul 21, 2026
HR 9686
Rep. Zach Nunn (R-IA) introduced the FARM AI Act to push the USDA to develop and support AI tools specifically for American agriculture, covering things like crop monitoring, livestock management, and supply chain optimization. It's a pro-innovation bill focused on funding, research, and coordination rather than restricting AI use. Currently sitting in the House Agriculture Committee.
Last action: Jul 14, 2026
HR 9501
Rep. Vern Buchanan (R-FL) introduced the AI Tax Integrity Act of 2026, which aims to ensure the IRS uses artificial intelligence responsibly when auditing taxpayers and processing returns. The bill would likely require oversight, transparency, or guardrails on IRS use of AI tools for tax enforcement. It's currently sitting in the House Ways and Means Committee.
Last action: Jul 1, 2026
HR 9333
Rep. Deborah Ross (D-NC) introduced this bill to create a coordinated system for reporting security flaws and vulnerabilities in AI systems, similar to how cybersecurity bugs get reported today. It would direct NIST to establish standardized processes for researchers and companies to disclose AI vulnerabilities responsibly.
Last action: Jun 25, 2026
HR 9341
Rep. Brian Babin (R-TX) introduced this bill to direct federal agencies to make their public datasets more usable for training AI models, things like standardized formats, machine-readable structures, and clear metadata. It targets government data practices, not private sector AI use, aiming to give US companies and researchers better raw material for building AI systems.
Last action: Jun 25, 2026
HR 2385
The CREATE AI Act, introduced in the House of Representatives, would establish the National AI Research Resource (NAIRR) to give academic researchers and small businesses access to computing power and datasets for AI development. This federal program would level the playing field between Big Tech companies and smaller organizations by providing free access to expensive AI infrastructure that currently only major corporations can afford.
Last action: Jun 25, 2026
HR 4801
Rep. French Hill's bill directs federal financial regulators (SEC, CFTC, FDIC, OCC, Federal Reserve, NCUA, CFPB) to create 'AI innovation labs' where banks, broker-dealers, and fintech companies can test AI tools with regulatory feedback before full deployment. It aims to give financial firms a sanctioned sandbox to experiment with AI for fraud detection, underwriting, trading, and customer service without fear of immediate enforcement action.
Last action: Jun 24, 2026
HR 8881
Rep. Brad Finstad's bill would require the Small Business Administration (SBA) to develop a strategy for using AI internally to improve how it serves small businesses. It's an internal government modernization bill, not a regulation on private companies or their AI tools.
Last action: Jun 24, 2026
HR 9439
Rep. Zoe Lofgren (D-CA) introduced this bill to create a voluntary federal pilot program where consumer-facing AI companies can opt in to standardized disclosure labels, similar to nutrition labels for food. Participation is optional and the program is designed to test what AI transparency information consumers actually find useful before any mandatory rules get written.
Last action: Jun 24, 2026
S 4916
Senator Mark Kelly (D-AZ) introduced this bill to create a federal task force studying how AI can help older Americans age safely at home and improve elder care. It's a research and recommendations effort, not a regulatory action, focused on things like AI-powered fall detection, medication management, and caregiver support tools.
Last action: Jun 24, 2026
HR 2152
Rep. Zachary Nunn (R-IA) introduced the AI PLAN Act, which directs federal agencies to develop a national strategy for protecting against AI-enabled threats like deepfakes, fraud, and cyberattacks. The bill cleared committee unanimously (52-0) and focuses on government coordination rather than imposing new rules on private companies.
Last action: Jun 24, 2026
HR 8671
Rep. Mike Flood (R-NE) introduced this bill to encourage banks and credit unions to use AI and machine learning to detect fraud. It likely provides regulatory clarity or safe harbors for financial institutions deploying AI-based fraud detection systems, making it easier for banks to adopt these tools without regulatory pushback.
Last action: Jun 18, 2026
HR 9323
Rep. Luz Rivas (D-CA) introduced this bill to create a new federal agency, the Department of Advanced Technology and Artificial Intelligence, to coordinate U.S. AI policy and oversight. The bill is currently sitting in the House Oversight Committee and would centralize federal AI governance rather than imposing direct rules on private companies.
Last action: Jun 15, 2026
HR 9285
Representative Michael Lawler's bill directs federal agencies to use AI to better track, predict, and respond to extreme heat emergencies. It focuses on improving government forecasting and public health response, not on regulating private-sector AI. The bill sits in the House Energy and Commerce Committee.
Last action: Jun 11, 2026
HR 635
Illinois House Resolution 635, introduced by Rep. Carol Ammons with co-sponsors Lilian Jiménez and Maurice West, expresses state support for a 4-day work week. As a resolution, it's a symbolic statement of legislative intent rather than a binding law, and it has no direct connection to AI regulation.
Last action: May 28, 2026
SB 2413
Illinois SB 2413 creates a state-run Family and Medical Leave Program, not an AI-specific bill. It establishes paid family and medical leave benefits for Illinois workers and has no direct AI regulation component. It currently sits in committee with no active sponsor movement.
Last action: May 22, 2026
S 4627
Senator Ted Budd's FARM AI Act of 2026 directs the USDA to study and support artificial intelligence adoption in American agriculture, covering uses like precision farming, crop monitoring, livestock management, and supply chain optimization. The bill is currently sitting in the Senate Agriculture Committee and focuses on research, coordination, and farmer access to AI tools rather than imposing new restrictions.
Last action: May 21, 2026
HB 5760
Illinois HB 5760 would create a state commission to study how AI is displacing workers and recommend transition programs. It's a research and advisory body, not a regulation, so no immediate compliance requirements for businesses.
Last action: May 5, 2026
S 4456
Senator Jim Banks (R-IN) introduced the AI OVERWATCH Act to monitor how foreign adversaries (think China, Russia, Iran, North Korea) use artificial intelligence in ways that could threaten U.S. national security and economic interests. The bill likely directs federal agencies, possibly Treasury and intelligence community, to track and report on adversarial AI development, with implications for export controls and foreign investment review.
Last action: Apr 30, 2026
S 4414
Senator Adam Schiff's LIFT AI Act would direct the National Institute of Standards and Technology (NIST) to study AI literacy and workforce readiness across the U.S. economy. It does not create new rules for businesses; it sets up federal research and recommendations on closing the AI skills gap.
Last action: Apr 28, 2026
HR 6996
The Full AI Stack Export Promotion Act (HR 6996) aims to boost US exports of AI technologies by streamlining export controls and creating new government programs to help American AI companies sell internationally. While the full text isn't available yet, the title suggests it covers the entire AI technology chain from chips to software, likely reducing barriers that currently make it hard for US companies to export AI products.
Last action: Apr 22, 2026
HB 3483
Illinois HB 3483 establishes a state Family & Medical Leave Program, not an AI-focused bill. It creates paid leave benefits for Illinois workers and has no direct AI regulatory provisions based on available information.
Last action: Apr 7, 2026
S 4216
Senator Brian Schatz (D-HI) introduced a bill to repeal President Biden's Executive Order on AI, which currently requires federal agencies to develop AI safety standards and companies to share AI safety test results with the government. This would eliminate federal AI oversight requirements that the Executive Order put in place.
Last action: Mar 26, 2026
HR 7058
Representative Jim Himes introduced HR 7058, which requires the State Department to create an office that evaluates AI risks from China, Russia, and other adversary nations. The bill doesn't regulate businesses directly but mandates government reports on foreign AI threats that could influence future regulations and federal AI procurement decisions.
Last action: Mar 26, 2026
HRES 1007
House Resolution 1007 is a non-binding resolution that expresses Congress's opinion on how AI should be used in banking, lending, and housing. It doesn't create any new laws or requirements; it just states that Congress thinks financial companies should use AI responsibly, avoid discrimination, and be transparent about their AI systems.
Last action: Mar 19, 2026
HR 3679
Rep. Mike Collins (R-GA) introduced this bill to help small businesses adopt AI tools through education, training, and resources via the Small Business Administration. It directs the SBA to create programs that teach small business owners how to use AI responsibly and competitively, rather than imposing new restrictions or compliance burdens.
Last action: Feb 24, 2026
SRES 598
Senator Elizabeth Warren introduced this resolution condemning President Trump's decision to allow exports of advanced AI chips to the United Arab Emirates, citing national security concerns and alleged conflicts of interest tied to a $500 million UAE investment in the Trump family's crypto company. It is a non-binding Senate resolution expressing disapproval, not a law that creates new rules or penalties.
Last action: Feb 5, 2026
HR 7294
Rep. Robert Menendez (D-NJ) introduced the AI for Secure Networks Act to improve cybersecurity in critical infrastructure by using AI to detect and respond to threats. The bill would direct the Department of Homeland Security to develop AI tools for protecting power grids, water systems, and other essential services from cyber attacks.
Last action: Jan 30, 2026
HR 5764
Rep. Mark Alford (R-MO) introduced a bill requiring the Small Business Administration to create free AI training programs for small businesses. The bill would establish a nationwide network of AI resource centers at universities and community colleges, plus require SBA to publish guides on how small businesses can actually use AI tools to compete with larger companies.
Last action: Jan 26, 2026
HR 5784
The AI-WISE Act, introduced by Rep. Hillary Scholten (D-MI), directs the Small Business Administration to help small businesses understand and adopt AI tools through education, training, and resources. It is an SBA-focused support measure, not a regulatory mandate, and has cleared the House and moved to the Senate Small Business Committee.
Last action: Jan 26, 2026
HR 7226
Rep. Blake Moore (R-UT) introduced this bill directing federal agencies to use AI to review the Code of Federal Regulations and identify outdated, duplicative, or unnecessary rules for repeal. It's aimed at government deregulation, not at regulating private-sector AI use.
Last action: Jan 22, 2026
HR 7064
Rep. Pablo Jose Hernández (D-PR) introduced this bill to study how AI is being used in healthcare and identify ways it can improve efficiency across the U.S. health system. It doesn't impose new rules on companies; it directs a federal study and report on AI applications in medical settings.
Last action: Jan 14, 2026
S 3586
Senator Todd Young (R-IN) introduced a bill to create a voluntary AI certification program specifically for small businesses. The bill would establish an 'AI Center of Excellence' at the Small Business Administration that helps small companies adopt AI responsibly through training, resources, and a certification process that could give them advantages in federal contracting.
Last action: Jan 7, 2026
S 3557
Senator Ed Markey (D-MA) introduced this bill to explicitly protect states' rights to pass and enforce their own AI laws, blocking any federal preemption efforts. It's a direct response to Congressional proposals that would prevent states like California, Colorado, and New York from regulating AI independently. If passed, businesses would continue facing a patchwork of state AI rules rather than a single federal standard.
Last action: Dec 17, 2025
S 3339
Senator Jim Banks (R-IN) introduced the AI Workforce PREPARE Act to help American workers adapt to AI-driven changes in the labor market. The bill focuses on workforce training, education, and preparing employees for jobs affected by AI automation. It's currently sitting in the Senate HELP Committee with no compliance mandates for private businesses.
Last action: Dec 3, 2025
HR 6304
Rep. Jennifer Kiggans (R-VA) introduced a bill to create a new AI research hub within the National Science Foundation that would fund academic research into AI safety and ethics. The bill would allocate $100 million annually for five years to universities studying how to make AI systems more transparent, secure, and aligned with American values.
Last action: Nov 25, 2025
HR 6306
Rep. Ted Lieu (D-CA) introduced the AI Fraud Deterrence Act, which would increase criminal penalties for fraud, impersonation, and other crimes when AI is used to commit or amplify them. It targets bad actors using generative AI for scams, deepfake impersonation, and mass fraud schemes, rather than regulating legitimate business AI use.
Last action: Nov 25, 2025
HR 6077
Rep. Nanette Barragán's HEAL-AI Act (HR 6077) directs federal health agencies to study how AI is used in healthcare, focusing on patient safety, bias, privacy, and clinical decision-making. It's an information-gathering bill at this stage, not a regulatory mandate, and sits in the House Energy and Commerce Committee.
Last action: Nov 18, 2025
S 3063
Senator Bill Cassidy (R-LA) introduced the LIFE with AI Act to study how artificial intelligence is reshaping American life, including its impact on jobs, education, and healthcare. The bill appears focused on research and policy recommendations rather than immediate AI regulation, and it has been referred to the Senate HELP Committee.
Last action: Oct 28, 2025
HRES 694
Rep. Greg Landsman (D-OH) introduced a non-binding House resolution urging CMS to halt its WISeR pilot program, which uses AI to help make Medicare prior authorization decisions. It expresses the sense of the House but does not carry the force of law.
Last action: Sep 10, 2025
HR 5227
Rep. Jim Costa (D-CA-21) introduced this bill to expand AI infrastructure and access in rural areas, likely through federal support for low-cost AI computing resources in underserved regions. It's currently sitting in the House Science Committee with no compliance requirements attached, this is about funding and access, not regulation.
Last action: Sep 9, 2025
S 2615
Senator John Hickenlooper (D-CO) introduced the VET Artificial Intelligence Act to create a federal framework for third-party auditing and verification of AI systems. It would direct NIST to develop voluntary specifications and guidelines that independent evaluators use to assess whether AI systems comply with existing laws and industry standards.
Last action: Jul 31, 2025
S 2528
Senator Mike Rounds (R-SD) introduced this bill to make it easier for banks, investment firms, and insurers to experiment with AI tools. It would require federal financial regulators (like the SEC, FDIC, and CFPB) to create 'regulatory sandboxes' where financial firms can test AI applications with temporary waivers from certain rules.
Last action: Jul 29, 2025
S 2488
Senator Brian Schatz (D-HI) introduced this bill to give gig workers (think Uber drivers, DoorDash couriers, Instacart shoppers) access to portable benefits without forcing companies to reclassify them as employees. It would let app-based platforms contribute to benefits like retirement, health insurance, and paid leave for independent contractors. The bill is currently sitting in the Senate HELP Committee with no hearing scheduled.
Last action: Jul 28, 2025
S 2381
Senator John Cornyn (R-TX) introduced the PROACTIV AI Data Act, which aims to expand access to high-quality training data for American AI developers. The bill focuses on making federal data more available to AI companies to strengthen US competitiveness in AI development. It's currently sitting in the Senate Commerce Committee.
Last action: Jul 22, 2025
HR 1709
Rep. Greg Landsman's bill directs the federal government to study cybersecurity vulnerabilities in US mobile networks, including threats from foreign adversaries and weaknesses in older protocols like SS7 and Diameter. It requires a report to Congress within one year but creates no new business regulations or compliance obligations.
Last action: Jul 15, 2025
SB 2027
Illinois Senator Celina Villanueva's SB 2027 amends the state's Use Tax and Occupation Tax laws related to vehicles. Despite the bill number appearing in AI legislation tracking, the actual content addresses vehicle taxation rather than artificial intelligence regulation.
Last action: Jun 2, 2025
S 1110
Senator Jon Husted (R-OH) introduced this bill to have federal agencies use AI to comb through the Code of Federal Regulations and flag outdated, duplicative, or overly burdensome rules for elimination. It's a government-facing efficiency effort, not a regulation on private AI use.
Last action: Mar 25, 2025
HB 3529
Illinois Rep. Janet Yang Rohr introduced HB 3529 to establish state-level AI principles, likely setting baseline expectations for how AI systems should be developed and used in Illinois. The bill is currently stalled in the Rules Committee, meaning it has not advanced to substantive debate or amendment.
Last action: Mar 21, 2025
HR 1694
Rep. Josh Harder (D-CA-9) introduced the AI Accountability Act, which directs federal agencies to study how AI is being used and its risks. The bill sits in the House Energy and Commerce Committee and, based on available information, appears to focus on federal reporting rather than imposing direct rules on private companies.
Last action: Feb 27, 2025
SB 1252
Illinois SB 1252 appears to be a standard identification documentation bill currently sitting in committee. Without published bill text or sponsor details available, the specific AI implications are unclear, but ID documentation laws can intersect with AI through biometric verification, facial recognition, and digital identity systems.
Last action: Jan 24, 2025
HB 3882
Illinois HB 3882 is a technical amendment to the state's Identification Card Act, dealing with standard ID documentation requirements. Despite appearing in an AI legislation tracker, the bill text shows no substantive AI provisions and has already been enacted as Public Act 103-0210. It appears to be a routine ID administration update with no direct AI regulatory impact.
Last action: Jun 30, 2023
SB 107
Illinois SB 107 would authorize law enforcement and public safety agencies to deploy drones as first responders, expanding the situations in which police and emergency services can use unmanned aircraft without a warrant. The bill modifies existing drone restrictions under the Freedom from Drone Surveillance Act to allow proactive drone dispatch to 911 calls and emergency scenes.
Last action: May 19, 2023
SB 2397
Illinois SB 2397, titled STANDARD ID-DOCUMENTATION, is currently in introduced status with limited public details available. Based on available information, this appears to be a state-level measure focused on identification documentation standards, with Sen. Kimberly A. Lightford recently added as Chief Co-Sponsor. Until bill text becomes public, AI-specific impacts remain unclear.
Last action: May 11, 2023
SB 754
Illinois SB 754, introduced by Senators Julie Morrison and Bob Morgan, is a regulatory technology bill currently sitting in the Rules Committee. With no detailed description published and the bill re-referred to Rules (often a parking spot for stalled legislation), the specific AI provisions remain unclear, but the 'REGULATION-TECH' shorthand signals it targets how technology is regulated in the state.
Last action: Apr 28, 2023
Common questions
Frequently Asked Questions
What AI laws affect Indiana banks and financial services companies?
Indiana financial institutions face AI regulation from multiple directions. Federal bills target AI-driven credit decisions, algorithmic lending, and fraud detection systems. Pending legislation would require explainability for any AI that denies credit, sets insurance rates, or flags fraud. The CFPB is also pursuing enforcement around AI in consumer finance. Financial services companies in Indiana should track both federal proposals and state-level consumer protection bills.
Can banks use AI for credit decisions in Indiana?
Currently, yes, but multiple bills would add requirements. Proposed legislation requires that AI credit decisions be explainable to consumers, tested for disparate impact across protected classes, and subject to human review for denials. The Equal Credit Opportunity Act already prohibits discrimination, and regulators are increasingly scrutinizing whether AI models comply. Proactive testing and documentation is the safest path.
How should financial services firms prepare for AI regulation?
Start with model governance: document every AI model used in customer-facing decisions, including credit scoring, fraud detection, and pricing. Implement disparate impact testing on a regular schedule. Ensure consumers can request a human review of any AI-driven denial. Build explainability into your models now, before legislation mandates it. These steps align with requirements in both current enforcement actions and pending bills.
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