Nebraska AI Laws and Regulation (2026)

Nebraska has taken a targeted approach to artificial intelligence regulation, enacting specific laws addressing AI-generated child exploitation material, nonconsensual intimate deepfakes, and the use of AI in health insurance decisions. While the state has not passed broad comprehensive AI legislation, its 2025 session produced three significant AI-related laws, and several additional bills are moving through the 2026 legislative session.

This guide covers every enacted and pending Nebraska AI law, how federal AI policy affects the state, and what businesses and residents need to know. This article is for informational purposes only. Consult an attorney for advice specific to your situation.

AI-Generated Child Sexual Abuse Material (LB 383)

Governor Jim Pillen signed LB 383 on May 20, 2025, making Nebraska one of a growing number of states to explicitly criminalize AI-generated child sexual abuse material (CSAM). The law renamed the Child Pornography Prevention Act to the Child Sexual Abuse Material Prevention Act and expanded its scope to cover computer-generated imagery.

Criminal Penalties

LB 383 establishes a tiered penalty structure based on the offender's age and prior record. For anyone 19 years of age or older, knowingly possessing or receiving child sexual abuse material, including AI-generated content, is a Class IIA felony. Nebraska's Class IIA felony carries a maximum sentence of 20 years in prison with no mandatory minimum.

For offenders under 19 years of age, a first offense is a Class I misdemeanor (up to one year in jail and a $1,000 fine). A second or subsequent offense by someone under 19 is elevated to a Class IV felony, carrying up to two years in prison, one year of post-release supervision, and a $10,000 fine.

Any person who violates the possession and receipt provisions and who has a prior conviction for a covered sex offense is guilty of a Class IC felony for each new offense. Class IC felonies carry a mandatory minimum of five years and a maximum of 50 years in prison.

Forfeiture Provisions

Courts may order forfeiture of money, securities, firearms, conveyances, electronic communication devices, and any related equipment, components, software, or hardware used in connection with the offense. This provision gives law enforcement tools to seize the technology used to create or distribute AI-generated CSAM.

Affirmative Defense

The law includes a narrow affirmative defense for defendants between 18 and 19 years of age. If the defendant can prove they did not coerce the child into creating or sending the visual depiction, this defense may apply. This provision addresses scenarios involving consensual sharing between peers close in age.

The operative date for LB 383 is January 1, 2026. Senator Brian Hardin introduced the original bill, which incorporated provisions from LB 172 specifically targeting AI-generated content.

Nonconsensual Deepfake Intimate Images (LB 371)

Governor Pillen signed LB 371 on May 30, 2025, after the bill passed the legislature on a unanimous 49-0 vote. The law amends the Uniform Civil Remedies for Unauthorized Disclosure of Intimate Images Act to cover images created by computer generation or digital manipulation.

Civil Liability Framework

LB 371 creates a civil cause of action for victims whose intimate images have been created or shared using AI or computer-generation technology without their consent. Under the law, a depicted individual may bring a civil lawsuit against anyone who creates, distributes, or publishes a computer-generated intimate image without the depicted person's authorization.

The law redefines key terms within the Disclosure of Intimate Images Act to ensure that AI-generated or digitally manipulated images receive the same legal treatment as real photographs or video. This means victims of deepfake intimate content can seek damages, injunctions, and other relief through civil court.

Connection to Federal Efforts

Nebraska Attorney General Mike Hilgers has also taken an active role in combating deepfake nonconsensual intimate imagery at the national level. The AG joined multistate letters to search engines and payment platforms urging them to take stronger action against the distribution of deepfake intimate content on their platforms.

AI in Health Care: Prior Authorization Reform (LB 77)

One of Nebraska's most impactful AI-related laws addresses the health care industry. Governor Pillen signed LB 77, the Ensuring Transparency in Prior Authorization Act, on June 4, 2025. The law prohibits health insurers from using artificial intelligence as the sole basis for denying, delaying, or modifying health care services.

Key Requirements

LB 77 imposes several requirements on utilization review agents and health insurers operating in Nebraska:

Requirement	Details
AI denial prohibition	AI cannot be the sole basis for denying, delaying, or modifying health care services
Physician-led determinations	Adverse determinations must involve a physician review
Standardized forms	The Department of Insurance must approve uniform prior authorization request forms
Notice of new requirements	Insurers must give providers at least 60 days notice before implementing new prior authorization requirements
Accessible criteria	Health plan prior authorization criteria must be easily accessible to providers
Clear timelines	The law sets specific review timelines for prior authorization requests

Implementation Timeline

The Nebraska Department of Insurance was required to approve standardized prior authorization forms by November 1, 2025. These new forms took effect January 1, 2026, and apply to all fully insured health plans in Nebraska. Senator Eliot Bostar introduced LB 77.

State Government AI Policy (NITC 8-609)

The Nebraska Information Technology Commission (NITC) established Policy 8-609, an artificial intelligence policy governing the use of AI by state agencies. This policy sets guidelines for how Nebraska state government entities may adopt and use AI tools in their operations.

The NITC policy represents Nebraska's executive branch approach to AI governance. While it does not carry the force of legislation, it establishes standards and expectations for state agencies evaluating or deploying AI systems. The policy addresses issues including data security, transparency, and responsible use of AI tools by government employees.

Pending AI Legislation (2026 Session)

Nebraska's 109th Legislature, Second Session (2026) introduced several additional AI-related bills that are currently working through the legislative process.

LB 1083: Transparency in Artificial Intelligence Risk Management Act

Senator Tanya Storer introduced LB 1083, which would require large frontier AI developers to create and publicly post risk management plans. The bill targets AI companies with annual revenue of $500 million or more (together with affiliates).

Under LB 1083, covered developers would need to describe how they assess and reduce "catastrophic" risks, defined as risks that could contribute to the serious injury or death of more than 50 people or cause more than $1 billion in damage from a single incident. The bill would require AI safety incidents be reported to the Nebraska Attorney General and would authorize the AG to update key definitions over time.

The approach differs from California's vetoed SB 1047 in that it leaves technical decisions to developers while giving the state accountability tools if companies fall short of their own stated standards. No one testified in opposition during the committee hearing.

LB 1185: Conversational Artificial Intelligence Safety Act

Senator Eliot Bostar introduced LB 1185, which addresses AI chatbot safety with a particular focus on protecting minors. The bill would impose several requirements on conversational AI providers:

• Disclosure when a user could reasonably believe they are interacting with a human
• Recurring AI disclaimers for minor account holders
• Limits on engagement-based rewards for minors
• Measures to prevent sexually explicit or sexualizing content directed at minors
• Prohibitions on AI systems presenting themselves as human or fostering emotional or romantic dependence
• Protocols to respond to prompts involving suicidal ideation or self-harm, including referral to crisis services
• A ban on AI services claiming to provide professional mental or behavioral health care

Provisions of LB 1185 were recently amended into an agriculture privacy bill and advanced to the next round of debate, indicating forward momentum for the chatbot safety provisions.

LB 642: Artificial Intelligence Consumer Protection Act

Senator Bostar also introduced LB 642 during the 2025 session. This bill would establish comprehensive regulations for high-risk AI systems in Nebraska. If enacted, developers would need to use reasonable care to protect consumers from algorithmic discrimination and provide detailed documentation about their AI systems.

The bill defines "high-risk" AI systems as those that operate without human review and affect consequential decisions about individuals, including housing, employment, criminal justice, and health care. Deployers would need to implement risk management policies, complete impact assessments, and notify consumers when AI systems make consequential decisions affecting them.

LB 642 gives exclusive enforcement authority to the Nebraska Attorney General, with a notice-and-cure process before formal action. The bill does not create a private right of action. It was referred to the Judiciary Committee in January 2025, where it received a hearing on February 6, 2025. The bill has not advanced from committee as of early 2026, though it could be reintroduced or amended into other legislation during the current session.

Deepfakes in Elections

Nebraska has addressed the use of AI-generated deepfakes in elections through legislative proposals, though no comprehensive election deepfake law has been enacted.

LB 1203: AI in Political Advertisements

Senator John Cavanaugh introduced LB 1203 during the 2025 session, which would have required political advertisements containing AI-generated content to disclose that information to the Nebraska Accountability and Disclosure Commission (NADC).

The bill defined "materially deceptive media" as content created with AI that falsely depicts conduct or speech that did not occur, distributed with the intent to deceive voters. Such media would be prohibited within 90 days of an election unless it carried a disclaimer. Exemptions covered news broadcasts, satire, and parody.

However, the NADC testified that it could not administer or enforce the bill as written, stating it is not equipped to judge the truth or falsity of campaign claims. The bill did not advance from committee during the 2025 session.

Federal AI Policy and Nebraska

Federal AI policy has a direct effect on Nebraska's regulatory landscape. President Trump's executive order on AI, issued in January 2025, revoked the Biden administration's 2023 AI executive order and emphasized a deregulatory approach favoring innovation over prescriptive rules.

Impact on State Regulation

Governor Pillen was among 17 Republican governors who signed a letter opposing a proposed congressional moratorium on state AI regulation. This indicates Nebraska's position that states should retain the ability to set their own AI policies rather than deferring entirely to federal standards.

The federal approach creates a patchwork dynamic where states like Nebraska fill regulatory gaps with their own legislation. Nebraska's targeted laws on deepfakes, health care AI, and child exploitation complement federal efforts without creating conflicts with current federal policy.

Federal Preemption Concerns

As Congress considers broader AI legislation, there is ongoing tension between federal preemption and state authority. Nebraska's existing AI laws in areas like health insurance regulation and criminal law are unlikely to face preemption challenges, as these fall within traditional areas of state authority. However, broader comprehensive AI regulation at the state level, such as the proposed LB 642, could face preemption questions if Congress passes a national AI framework.

Summary of Nebraska AI Laws

Law	Subject	Status	Effective Date	Key Provision
LB 383	AI-generated CSAM	Enacted	January 1, 2026	Criminalizes AI-generated child sexual abuse material; Class IIA felony for adults
LB 371	Deepfake intimate images	Enacted	2025	Civil liability for nonconsensual AI-generated intimate images
LB 77	Health care AI	Enacted	January 1, 2026	Bans AI as sole basis for health care denials
NITC 8-609	Government AI use	In effect	N/A	AI policy for state agencies
LB 1083	Frontier AI risk management	Pending (2026)	TBD	Risk management plans for large AI developers
LB 1185	Chatbot safety	Pending (2026)	TBD	Disclosure requirements and minor protections for AI chatbots
LB 642	Comprehensive AI regulation	Pending	TBD	Consumer protection from high-risk AI systems
LB 1203	Election deepfakes	Did not advance (2025)	N/A	Would have required AI disclosure in political ads

More Nebraska Laws

• Nebraska Recording Laws
• [Nebraska Data Privacy Laws](/us-laws/data-privacy-laws/nebraska-data-privacy-laws)
• Nebraska Surveillance Camera Laws
• Nebraska Background Check Laws
• Nebraska Sexting Laws