Indiana AI Laws: What's Enacted and What's Next (2027)

As of November 2026, Indiana has enacted targeted AI provisions but, in our search, no comprehensive AI act. The main ones are HB 1271 (Indiana Code 27-1-52-9), in force since July 1, 2026, which limits automated tools including AI in health claims, and SB 150 (2024), whose AI task force and state agency inventory chapters expire December 31, 2027.

How we searched: Where this page says we found no law, we mean a text search of our stored copy of the Indiana Code, captured July 29, 2026, for "artificial intelligence", "chatbot", "machine learning", "algorithm" and "automated decision", the General Assembly's pages for the bills named here, web searches, and the NAIC's list of state insurance bulletins. A code search does not reach uncodified session-law text, and we did not run a full-text search of the 2025 and 2026 acts, so a provision could be missed. Code text on this page comes from that stored copy or the enrolled acts.

This page covers Indiana state law as of November 4, 2026. It is general legal information, not legal advice. For the national picture, see our guide to US AI laws.

Indiana AI Laws at a Glance

HB 1271: AI in Indiana Health Insurance Claims (IC 27-1-52-9)

HB 1271 added a chapter on downcoding of health benefits claims. Its enrolled text has three AI-related rules, each worded narrowly:

• Insurers. An insurer may not use an automated process, system or tool, "including artificial intelligence," as "the sole basis to downcode a claim based on medical necessity" without review of the covered individual's medical record by an employee or contractor of the insurer.
• Providers. A provider may not use such a tool to submit a health benefits claim without review by a provider or other person involved in developing the claim.
• Disclosure. An insurer must disclose in an easily accessible and readable manner when AI is used to make an adverse determination on a prior authorization request or to downcode a claim.

The section does not ban AI in claims handling. The insurer rule reaches sole-basis medical necessity downcoding, and the statutory word is automated, which is broader than AI. The chapter does not apply to the Medicaid program or to a managed care organization that provides services to a Medicaid recipient.

AI in Indiana State Government

AI Task Force (SB 150). SB 150 created IC 2-5-53.7, a fifteen-member "temporary task force serving the general assembly." Its enrolled text requires a report by October 31, 2024 and by October 31 of each year after that. We did not confirm what reports were filed.

State agency AI inventory. IC 4-13.1-5, effective July 1, 2025, says that not later than November 1, 2025, each state agency "may" compile an inventory of its AI technologies. It is permissive, not a mandate.

Budget documents. SB 5 (2025) added IC 4-12-1-7.5: "A state agency may use artificial intelligence software to prepare a statement required under section 7 of this chapter or any budget projections for the state agency."

Government technology contracts. IC 1-1-15.3, added by SEA 256 (P.L. 131-2026), defines a "technological product or service" to include one used for artificial intelligence, and excludes unmanned aerial systems. A contract by the state, a state agency or a political subdivision for one must require the contractor to confirm that it and its subcontractors are not prohibited persons, a term tied to foreign adversaries. It applies to new contracts after June 30, 2026 and to existing contracts amended or renewed after June 30, 2027. A breach may be regarded as a material breach of the contract.

State AI policy. This is executive policy, not a statute. The Management Performance Hub's AI page, read November 4, 2026, says Indiana implemented the policy in February 2024, that it uses the NIST AI Risk Management Framework, and that "Any unapproved AI use is prohibited" for state employees. It also says the Readiness Assessment process merged with the Indiana Office of Technology's intake process as of August 2026. We read that page, not the policy document itself.

Indiana Consumer Data Protection Act: Profiling Rights

The Indiana Consumer Data Protection Act, effective January 1, 2026, does not name AI. It defines profiling as "any form of solely automated processing" of personal data to evaluate, analyze or predict personal aspects of an identified or identifiable individual. A consumer may opt out of profiling "in furtherance of decisions that produce legal or similarly significant effects."

The limits matter:

• Who must comply. A person doing business in Indiana or targeting its residents that, in a calendar year, controls or processes data of at least 100,000 Indiana consumers, or at least 25,000 while deriving more than 50% of gross revenue from selling personal data.
• Who is protected. A consumer is an Indiana resident acting only for a personal, family or household purpose, not someone in a commercial or employment context.
• Who is exempt. Exclusions include state government, financial institutions and data subject to the Gramm-Leach-Bliley Act, and HIPAA covered entities and business associates, among others.

Indiana Deepfake and Election Laws

HB 1047 broadened IC 35-45-4-8 so an intimate image includes one "created or modified by means of a computer software program, artificial intelligence, application, or other digital editing tools." Distribution is the offense, a Class A misdemeanor, or a Level 6 felony with a prior unrelated conviction under the section, and the section lists exceptions. Indiana's civil article on nonconsensual images, IC 34-21.5, defines "computer generated image" in similar terms.

HEA 1133 requires a campaign communication that includes fabricated media of a candidate to carry a disclaimer stating: "Elements of this media have been digitally altered or artificially generated." The depicted candidate may bring a civil action, with a clear and convincing evidence burden. For the details, see our guide to Indiana deepfake laws.

AI Note-Takers and Recording in Indiana

AI meeting assistants raise recording consent questions. Our guide to Indiana AI meeting recording laws covers them.

What We Did Not Find in Indiana Law

In the search described at the top of this page, through November 4, 2026, we found no Indiana statute on AI in employment decisions, no chatbot law for consumers or minors, no frontier model law, and no algorithmic pricing law. Federal and general state laws may still apply.

Indiana is not on the NAIC's list of states acting on its AI model bulletin for insurers as we read it on November 4, 2026. That list may lag, and we did not search the Indiana Department of Insurance's own bulletins. Web searches found no AI executive order from the governor and no Indiana attorney general AI enforcement action, and they would not show every order or action.

The words "artificial intelligence" also appear in two funding-related definitions in the code, a scholarship field of study (IC 21-49-7-6) and "advanced computing" in a sales tax chapter (IC 6-2.5-15-0.5). Neither regulates AI.

Indiana AI Bills That Did Not Pass

The General Assembly's action pages, read November 4, 2026, show no action on these bills after the dates below.

Federal AI Policy and Indiana

As of November 4, 2026, we found no federal statute in the public laws of the 119th Congress that sets general rules for private AI systems or generally preempts state AI laws. In December 2025, Executive Order 14365 directed federal agencies to challenge or discourage state AI laws the administration views as conflicting with national policy, and called for a federal framework from Congress. The order itself does not declare any state law invalid. The Justice Department formed an AI Litigation Task Force in January 2026, the White House issued legislative recommendations in March 2026, and the FTC proposed a policy statement in July 2026. Separately, in April 2026 the Justice Department intervened in a lawsuit against Colorado's AI law under the Civil Rights Act of 1964. We did not find a published Commerce evaluation of state laws in the Federal Register or on ntia.gov, or a BEAD notice carrying the order's AI condition on NTIA's sites. See our pages on the Trump AI executive orders and state AI law preemption.

What Changes in Indiana AI Law in 2027

• After June 30, 2027: existing government contracts for a technological product or service, which includes AI, must carry the IC 1-1-15.3-7 confirmation when amended or renewed.
• December 31, 2027: the AI Task Force chapter (IC 2-5-53.7-9) and the agency inventory chapter (IC 4-13.1-5-5) expire, per the enrolled text of SB 150, unless the legislature changes them.

As of November 4, 2026, we found no other AI law scheduled to take effect in Indiana in 2027; we searched the channels listed at the top of this page.

More Indiana Laws

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

Frequently Asked Questions

Does Indiana have an AI law?

Indiana has targeted AI provisions and, in our search as of November 2026, no comprehensive AI act. They include limits on automated tools in health claims, an intimate image law that reaches AI-made images, an election disclaimer law, an AI task force and a permissive state agency inventory.

Can an Indiana health insurer use AI to downcode a claim?

Not as the sole basis for a medical necessity downcode without review of the covered individual's medical record by an employee or contractor of the insurer. Indiana Code 27-1-52-9, in force since July 1, 2026, also requires insurers to disclose when AI is used to make an adverse prior authorization determination or to downcode a claim. The chapter does not apply to the Medicaid program or Medicaid managed care organizations.

When does Indiana's AI Task Force end?

The chapter creating it, Indiana Code 2-5-53.7, expires December 31, 2027, unless the legislature changes it. The state agency AI inventory chapter expires the same day.

Does Indiana regulate AI in hiring?

We found no Indiana statute on AI in employment decisions as of November 4, 2026, in a text search of our July 29, 2026 copy of the Indiana Code. HB 1421 on employer automated decision systems shows only a first reading on January 8, 2026. Federal and general state laws may still apply.

Is it illegal to share an AI-generated intimate image in Indiana?

It can be. Indiana Code 35-45-4-8 makes it a Class A misdemeanor to distribute an intimate image when the person knows or reasonably should know the depicted individual does not consent, or a Level 6 felony with a prior unrelated conviction under the section. The definition reaches images created or modified by AI, and the section lists exceptions.

Do Indiana political ads have to disclose AI?

A campaign communication that includes fabricated media of a candidate must carry the disclaimer that its elements have been digitally altered or artificially generated. The rule, in Indiana Code 3-9-8, turns on the statute's definition of fabricated media, not on any use of AI in an ad.

Can Indiana state employees use ChatGPT?

The state's AI policy page says employees may use only AI systems reviewed and approved by the Office of the Chief Data Officer, and that any unapproved AI use is prohibited. We read that page on November 4, 2026, not the policy document itself.