Indiana AI Laws and Regulation (2026)

Indiana has taken a measured, targeted approach to artificial intelligence regulation. Rather than enacting comprehensive AI oversight legislation, the Hoosier State has focused on specific harms like deepfake pornography and election manipulation while developing internal government AI policies through its Management Performance Hub.

This guide covers all enacted and pending Indiana AI laws, the state's AI governance framework for government agencies, deepfake regulations, healthcare AI proposals, and how federal AI policy interacts with Indiana's regulatory landscape.

Indiana's Enacted AI Laws

Indiana has enacted three AI-specific laws since 2024, addressing deepfake intimate images, election integrity, and state government AI oversight.

HB 1047: AI-Generated Intimate Images (2024)

Indiana House Bill 1047, authored by State Rep. Sharon Negele, took effect on July 1, 2024. The law criminalizes the creation and distribution of AI-generated intimate images and videos without the depicted person's consent.

HB 1047 expands Indiana's existing revenge pornography statutes by broadening the definition of "intimate images" to include unauthorized and undisclosed images generated or altered using AI, computer software programs, design editing tools, or other applications.

Penalties under HB 1047:

Offense	Classification	Maximum Penalty
First offense	Class A misdemeanor	Up to 1 year imprisonment, up to $5,000 fine
Prior conviction for revenge pornography	Level 6 felony	Up to 30 months imprisonment, up to $10,000 fine

The law provides exemptions for criminal investigations, court orders, and news reporting. It applies to any AI-generated or digitally altered content that depicts intimate imagery of a real, identifiable person without their knowledge or consent.

HEA 1133: Deepfake Disclosure in Elections (2024)

House Enrolled Act 1133, authored by State Rep. Julie Olthoff, was signed by Governor Eric Holcomb on March 12, 2024. The law requires disclaimers on AI-generated or digitally altered political advertisements, making Indiana one of the first states to address deepfakes in campaign communications.

Key provisions of HEA 1133:

Disclosure requirement: Any campaign communication containing "fabricated media" must include the disclaimer: "Elements of this media have been digitally altered or artificially generated."

Definition of fabricated media: The law covers three categories: (1) audio or visual recordings of a person's speech, conduct, or appearance altered without their consent; (2) artificially generated audio or visual imitations of a person; and (3) audio or visual material depicting the speech, conduct, or appearance of an artificially generated person. The content must inaccurately depict the person and be unrecognizable as an imitation to a "reasonable" person.

Scope: The law covers political communications for both federal and state elections in Indiana, providing broad protection against AI-manipulated campaign material.

Enforcement: If a disclosure label is not included, the depicted candidate may bring a civil action against those responsible for paying for or sponsoring the content. Successful plaintiffs are awarded damages, court costs, and attorney fees.

HEA 1133 passed the Indiana General Assembly without any opposition, reflecting bipartisan agreement on the need to protect electoral integrity from AI manipulation.

SB 150: AI Task Force and Cybersecurity (2024)

Indiana Senate Bill 150, effective July 1, 2024, established a 15-member Artificial Intelligence Task Force to study and assess the use of AI technology by state agencies.

Task Force composition: The 15 members come from varied backgrounds, including legislative members, executive branch officials, and private sector experts.

Task Force mandate: The group is charged with examining how AI is currently used by Indiana state agencies and the private sector, identifying opportunities to better serve constituents through new technologies, and recommending safeguards for data privacy and security.

Reporting requirement: The task force was required to submit a report of its findings to the General Assembly before October 31, 2024.

Additional provisions: SB 150 also authorizes political subdivisions, state agencies, school corporations, and state educational institutions to adopt technology resources and cybersecurity policies. It specifies requirements for entities connecting to Indiana's state technology infrastructure.

Indiana's State Government AI Policy

Beyond legislation, Indiana has developed one of the more detailed state government AI governance frameworks in the country through executive policy rather than statute.

AI Policy (February 2024)

On February 20, 2024, Indiana adopted a formal Artificial Intelligence Policy through the Office of the Chief Data Officer (OCDO), Chief Privacy Officer (CPO), and Management Performance Hub (MPH).

Pre-deployment risk assessments: The policy requires most AI projects implemented by state agencies to pass a maturity assessment before deployment. This assessment is based on the NIST AI Risk Management Framework and includes 72 subcategories evaluating AI system risks.

Transparency requirements: The policy mandates "just-in-time" notices to users interacting with AI systems, informing them about how their data is used by AI, consistent with the Indiana Fair Information Practices Act.

Scope: The policy applies to a majority of AI initiatives across state agencies, with the exception of employees using general-purpose web-based generative AI applications like ChatGPT for routine tasks.

State Agency AI Systems Policy

Indiana also published a separate State Agency AI Systems Policy (Version 1.1, December 2024) providing more detailed guidance on implementation, risk classification, and ongoing monitoring requirements for AI systems used in state government operations.

Pending AI Legislation

HB 1620: Healthcare AI Disclosure (2025)

Indiana House Bill 1620, introduced on January 21, 2025, would establish disclosure requirements for the use of AI in healthcare and insurance decisions.

Requirements for healthcare providers: The bill would require providers to disclose to patients when AI is used to (1) make or inform any decision involved in the provision of health care, or (2) generate any part of a communication to the patient regarding their health care.

Requirements for insurers: Health insurers providing accident and sickness coverage would be required to disclose to insured individuals when AI is used to (1) make or inform any decision involved in the provision of coverage, or (2) generate any part of a communication to the insured regarding their coverage.

New statutory chapters: HB 1620 would create two new chapters in Indiana law: IC 16-51-2.5 for healthcare providers and IC 27-8-44 for insurers.

Effective date: If enacted, the bill would take effect July 1, 2025.

HB 1620 represents Indiana's first attempt to regulate AI in healthcare, focusing on transparency and disclosure rather than restricting AI use.

AI in Indiana Employment Law

Indiana has not enacted any AI-specific employment legislation. The state does not require bias audits for automated hiring tools, impact assessments for AI-driven employment decisions, or specific disclosures when AI is used in recruitment, screening, or termination.

Indiana employers using AI in hiring are subject to federal anti-discrimination protections under Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, and EEOC guidance on AI and automated systems. Indiana's Civil Rights Law (IC 22-9) prohibits employment discrimination based on race, religion, color, sex, disability, national origin, and ancestry, but does not specifically address AI-driven discrimination.

AI in Indiana Education

Indiana has not enacted AI-specific education legislation, though the state's AI Task Force has examined AI use in educational settings as part of its broader mandate. The Indiana Department of Education has not issued formal AI guidance for school districts.

How Federal AI Policy Affects Indiana

Federal AI policy has direct implications for Indiana businesses and residents.

Executive Order 14179 (January 2025): President Trump's deregulatory approach to AI aligns with Indiana's generally business-friendly regulatory stance. The order's emphasis on removing barriers to AI innovation rather than imposing new requirements is consistent with Indiana's focus on studying AI use before implementing restrictions.

The TAKE IT DOWN Act (May 2025): This federal law criminalizing nonconsensual intimate deepfakes supplements Indiana's HB 1047 by adding federal criminal penalties (up to 2 years for adults, 3 years for minors) on top of the state's misdemeanor and felony provisions. Indiana residents now have both state and federal avenues for addressing AI-generated intimate imagery.

NIST AI Risk Management Framework: Indiana's state government AI policy is already built around the NIST AI RMF, placing the state ahead of many peers in adopting federal best practices. Private sector employers in Indiana can reference the framework for voluntary compliance guidance.

FTC Enforcement: The Federal Trade Commission's enforcement actions against deceptive AI practices apply nationwide, providing a baseline of protection for Indiana consumers even without state-specific AI consumer protection laws beyond existing unfair practices statutes.

Indiana's Consumer Data Protection Act and AI

Indiana's consumer data protection law (SB 5, effective January 1, 2026) includes provisions relevant to AI. The Indiana Consumer Data Protection Act gives residents the right to opt out of automated profiling that produces legal or similarly significant effects.

This right to opt out of automated profiling creates an indirect constraint on AI systems that make consequential decisions about Indiana consumers, even though the law does not specifically target AI. Businesses subject to the ICDPA must provide mechanisms for consumers to exercise this right and must conduct data protection assessments for processing activities that present a "heightened risk of harm," which includes profiling.

More Indiana Laws

• Indiana Recording Laws
• Indiana Data Privacy Laws
• Indiana Background Check Laws
• Indiana Surveillance Camera Laws
• Indiana Sexting Laws
• Indiana Whistleblower Laws

This article is for informational purposes only and does not constitute legal advice. AI regulation is a rapidly evolving area of law. Consult a qualified attorney licensed in Indiana for advice on your specific situation.