IndianaAI regulation

Regulation Status

• Indiana regulates AI through a mix of criminal-law amendments, its consumer-privacy statute, and 2026 sector bills rather than a single AI act. In March 2024 the state enacted HB 1047, extending prohibitions on the distribution of intimate images to reach computer-generated images, including those created or modified using computer software, artificial intelligence, applications, or other design-editing tools, with existing criminal penalties applying.
• The Indiana Consumer Data Protection Act (Ind. Code § 24-15-1 et seq.), effective 1 January 2026, gives consumers the right to opt out of solely automated processing used to evaluate or predict personal aspects in furtherance of decisions producing legal or similarly significant effects, and requires a data-protection assessment of such processing, enforceable at up to $7,500 per violation. In 2026 Indiana also enacted HB1271, barring insurers from using automated processes or AI as the sole basis for downcoding claims on medical necessity or submitting a health-benefits claim without human review of the medical record, and requiring disclosure when AI is used for adverse prior-authorization determinations or claim downcoding.
• SB256 conditions state and local contracts for technological products or services, including AI, on contractor and subcontractor confirmation that they are not “prohibited persons” tied to specified foreign adversaries, with requirements applying to new contracts after 30 June 2026 and amended or renewed contracts after 30 June 2027. It also prohibits state educational institutions from admitting foreign students into AI programs on or after 15 August 2026 until a foreign-influence and research-security review is completed.
• Indiana has not enacted a comprehensive algorithmic-discrimination or frontier-model statute; its posture emphasizes privacy-based automated-decision rights, synthetic intimate-image harms, AI in health-claims adjudication, and national-security controls on AI procurement and academic programs.