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

As of November 2026, Iowa has enacted targeted AI laws but, in our search, no comprehensive AI act. The main ones are HF 2635 (Iowa Code 514F.8(2A)), in force since July 1, 2026, which bars AI as the sole basis for denying certain prior authorization requests, and SF 2417 (Iowa Code chapter 554J) on conversational AI, which applies from July 1, 2027.

How we searched: Where this page says we found no law, we mean a text search of every chapter of the 2025 and 2026 Iowa Acts posted on legis.iowa.gov (371 chapters) for "artificial intelligence", "automated", "algorithm", "machine learning", "chatbot", "synthetic media", "generative" and "deepfake", the bill histories named here, a text search of our stored copy of the Iowa Code captured July 29, 2026, the NAIC's list of state insurance bulletins, and web searches. Those searches do not cover other wording, or acts from before 2025 that were not caught in the code search.

This page covers Iowa 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.

Iowa AI Laws at a Glance

HF 2635: AI in Iowa Prior Authorization (Iowa Code 514F.8)

HF 2635 is 2026 Iowa Acts chapter 1087. New subsection 2A of section 514F.8 applies to utilization review organizations. One "may use an artificial intelligence-based algorithm or system to provide an initial review of a request for prior authorization."

For a prior authorization request for a health care service based on medical necessity, it "shall not use an artificial intelligence-based algorithm or system as the sole basis" for a decision to deny, delay or downgrade the request. So the rule does not ban AI review, and it does not reach every kind of decision.

Section 514F.8E provides that the remedies for noncompliance are those authorized by chapters 505 and 507B. On a finding of a pattern or practice of noncompliance, the insurance commissioner may also suspend an organization's authority to conduct utilization review.

SF 2417: Iowa's Conversational AI Law (Chapter 554J)

SF 2417 is 2026 Iowa Acts chapter 1068. Section 7 says "This Act applies July 1, 2027." The legislature's page lists an effective date of July 1, 2026 and an applicability date of July 1, 2027.

Who is covered. A conversational AI service is an AI available by software application, web interface or computer program "that is accessible to the general public and that has the primary purpose of simulating human conversation and interaction." An operator is a person who develops and makes such a service available to the public. App stores and search engines are not operators solely because they provide access.

Who is not covered. The definition excludes tools primarily designed and marketed for research and development, features without that primary purpose, tools limited to a narrow and discrete topic, products primarily marketed for businesses to assist customers in obtaining services or buying goods, voice assistants for widely available consumer devices, and tools used by a business solely for internal purposes.

Duties for all users. If a reasonable individual would believe they are interacting with a human, the operator must clearly and conspicuously disclose that the service is AI, through a persistent visible disclaimer or one that appears after every three hours of continuous interaction. The operator must adopt protocols for prompts on suicidal ideation or self-harm, including reasonable efforts to refer users to crisis services. It may not knowingly and intentionally program the service to suggest it provides psychology or behavioral health services that require licensure under chapter 154B or 154D.

Duties for minors. A minor is someone an operator knows is, or is reasonably certain is, under 18. The operator must:

• Disclose AI use to minor account holders by a persistent visible disclaimer, or at the start of each interaction and at least once every three hours of continuous interaction
• Not provide points or similar rewards at unpredictable intervals with the intent to encourage increased engagement
• Take reasonable measures to prevent visual depictions of sexually explicit material, statements that the minor should engage in sexually explicit conduct, and sexual objectification of the minor
• Take reasonable measures to prevent statements that would lead a reasonable individual to believe they are interacting with a human, including claims of sentience, simulated emotional dependence, romantic interaction or sexual innuendo, and adult-minor romantic role-play
• Offer privacy and account tools to minor account holders, and to parents or guardians of those under 13 and, as appropriate based on relevant risks, of other minors

Enforcement. Under section 554J.6, a violating operator is subject to an injunction and liable for the greater of actual damages or a civil penalty of $1,000 per violation, up to $500,000 per operator. The attorney general enforces the chapter and "shall adopt rules pursuant to chapter 17A." The chapter creates no private right of action under it or any other law, and a model developer is not liable solely because a third party used its model to create or train a service.

Iowa Regulators on AI

Insurance. Iowa Insurance Division Bulletin 24-04, dated November 7, 2024, reminds insurers that decisions made or supported by AI systems must comply with Iowa insurance laws, including those on unfair trade practices and unfair discrimination. It states the Division's expectations for governing AI and the information it may request in an investigation or examination. It is a regulator's statement of expectations under existing law, not a new law.

State agencies. The Department of Management's Enterprise Generative AI Policy is an interim policy effective March 31, 2025. It says "The use of freely available AI tools by Supported Entities is expressly prohibited under this policy without prior written approval from the Department of Management." It is binding on Supported Entities and a best practice for others, and it requires human fallback systems if AI tools fail. The copy we read on November 4, 2026 lists a next review of March 31, 2026 and shows no revision date, so we could not confirm whether it has been updated.

Iowa v. OpenAI: The Attorney General's ChatGPT Suit

Attorneys general in Arizona, Arkansas, Idaho, Iowa, Montana, Nebraska and West Virginia announced separate suits against OpenAI on October 14, 2026. Official releases from several of those states also name Kansas.

Attorney General Bird's release says she is suing OpenAI for hurting Iowa children, deceiving parents and violating Iowa's Consumer Fraud Act. Those are allegations. The suit does not rest on chapter 554J, which applies from July 1, 2027. The release does not name the court, and we did not read the complaint or check the docket.

Iowa Deepfake and AI Image Laws

Iowa Code 728.12(3), amended by SF 2243, covers knowingly purchasing or possessing a depiction created, adapted or modified to give the appearance that an identifiable minor is engaged in a prohibited sexual act. It is a class D felony for a first offense and a class C felony after that. An identifiable minor must be recognizable as an actual person, so the definition does not reach imagery of no real, recognizable child.

Iowa Code 708.7(1)(a)(5), amended by HF 2240, makes it harassment to disseminate, with intent to intimidate, annoy or alarm, a depiction showing another person nude or in a sex act without consent, including a recognizable person whose image was used to create or modify it. It is first-degree harassment, an aggravated misdemeanor, and an offender 18 or older must register as a sex offender. For the details, see our guide to Iowa deepfake laws.

AI Note-Takers and Recording in Iowa

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

What We Did Not Find in Iowa Law

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

The 2025 and 2026 acts mention AI in a few other places that do not regulate it: education appropriations in both years name AI among technology subjects. A 2026 infrastructure act's division that mentioned AI in a state health IT study was item vetoed. Web searches found no AI executive order from the governor, and they would not show every order.

Iowa AI Bills That Did Not Become Law

Bill histories on legis.iowa.gov, read November 4, 2026, show no action after the dates below.

Federal AI Policy and Iowa

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 Iowa AI Law in 2027

• July 1, 2027: chapter 554J applies, per section 7 of the act.
• Attorney general rules: section 554J.6 requires them and sets no date. Web searches found no rulemaking notice as of November 4, 2026; we did not search the Iowa Administrative Bulletin.
• Other parts of HF 2635: audit rules apply to audits initiated on or after January 1, 2027, and electronic submission applies to prior authorization requests made on or after July 1, 2027. Neither is an AI rule.

As of November 4, 2026, we found no other AI law scheduled to take effect in Iowa in 2027; we searched the 2025 and 2026 Iowa Acts and the channels listed at the top of this page.

More Iowa Laws

• Iowa Data Privacy Laws
• Iowa Data Breach Notification Laws
• Iowa Biometric Privacy Laws
• Iowa Surveillance Camera Laws
• Iowa Background Check Laws
• Iowa Whistleblower Laws
• Iowa Sexting Laws
• Iowa Deepfake Laws
• Iowa AI Meeting Recording Laws

Frequently Asked Questions

Does Iowa have an AI law?

Yes, targeted ones. As of November 2026, Iowa has a law limiting AI in prior authorization (HF 2635), in force since July 1, 2026; a conversational AI chapter (SF 2417, chapter 554J) that applies July 1, 2027; and 2024 laws on sexual depictions of identifiable people. In our search, it has no comprehensive AI act.

When does Iowa's chatbot law take effect?

Chapter 554J applies July 1, 2027. The act says so in section 7. The legislature's page lists an effective date of July 1, 2026 and an applicability date of July 1, 2027.

Can an Iowa health insurer deny prior authorization using AI?

A utilization review organization may use AI for an initial review, but for a request for a health care service based on medical necessity it may not use AI as the sole basis to deny, delay or downgrade the request. That rule, in Iowa Code 514F.8, has been in effect since July 1, 2026.

Who enforces Iowa's conversational AI law?

The attorney general. From July 1, 2027, a violating operator is subject to an injunction and liable for the greater of actual damages or a civil penalty of $1,000 per violation, up to $500,000 per operator. The chapter creates no private right of action.

Is Iowa suing OpenAI?

Yes. Attorney General Bird announced on October 14, 2026 that she is suing OpenAI, alleging violations of Iowa's Consumer Fraud Act. The suit does not rest on chapter 554J, which applies from July 1, 2027.

Does Iowa require disclosure of AI in political ads?

We found no such law as of November 4, 2026. HF 2609 passed the House 89-2 on March 12, 2026, but its history shows no action after a Senate subcommittee was assigned on March 17, 2026.

Does Iowa regulate AI in hiring?

We found no Iowa statute on AI in employment decisions as of November 4, 2026, in a text search of the 2025 and 2026 Iowa Acts. SSB 3014, on state agency employment decisions, shows no action after January 27, 2026. Federal and general state laws may still apply.

Can Iowa state employees use ChatGPT?

Iowa's interim Enterprise Generative AI Policy says the use of freely available AI tools by Supported Entities is prohibited without prior written approval from the Department of Management. The policy lists a next review of March 31, 2026, and we could not confirm whether it has been updated.