North Carolina AI Laws and Regulation (2026)
Overview of North Carolina AI Laws
North Carolina is actively developing its approach to artificial intelligence regulation. While the state does not yet have a single comprehensive AI statute governing all private-sector AI use, it has taken significant steps through executive action and targeted legislation.
The most notable enacted law is Session Law 2024-37 (HB 591), which expanded existing criminal penalties to cover AI-generated deepfake intimate images. Governor Josh Stein further shaped the state's AI posture by signing Executive Order No. 24 on September 2, 2025, creating a state AI governance framework.
The 2025 legislative session saw an unprecedented wave of AI-related bills. Though none were enacted during that session, the breadth of proposals covering deepfakes, healthcare AI, chatbot regulation, AI safety, workforce impacts, and education demonstrates that comprehensive AI regulation is a priority for North Carolina lawmakers.
This article covers North Carolina's enacted and pending AI legislation, the Governor's executive order, and how federal policy intersects with state efforts. This information is current as of March 2026, but you should consult an attorney for advice specific to your situation.
Enacted Law: Deepfake Intimate Images (Session Law 2024-37)
North Carolina's most significant enacted AI legislation is Session Law 2024-37, signed into law in 2024. This law amended G.S. 14-190.5A, North Carolina's disclosure of private images statute, to explicitly cover AI-generated and synthetically manipulated content.
What the Law Changed
Before this amendment, G.S. 14-190.5A only applied to real images of identifiable individuals. Session Law 2024-37 expanded the definition of "image" to include "a realistic visual depiction created, adapted, or modified by technological means, including algorithms or artificial intelligence, such that a reasonable person would believe the image depicts an identifiable individual."
This means that AI-generated intimate images now carry the same criminal penalties as distributing real nonconsensual intimate images.
Criminal Penalties
The penalties under G.S. 14-190.5A apply equally to real and AI-generated intimate images:
| Offense | Classification | Details |
|---|---|---|
| Disclosure of private images (offender age 18+) | Class H felony | Applies to real and AI-generated images |
| Creating/distributing AI intimate images without consent | Class H felony | Added by Session Law 2024-37 |
| Sexual exploitation of a minor (AI-generated) | Felony (varying class) | Updated penalty structure |
| Sexual extortion using AI content | New offense | Established by Session Law 2024-37 |
Key Elements of the Offense
To violate the updated statute, prosecutors must show that:
- The disclosed image depicts a person's intimate parts as exposed or the person engaged in sexual conduct
- The image was disclosed without the depicted person's affirmative consent
- The image was created, adapted, or modified without the depicted person's consent (for AI-generated content)
- A reasonable person would believe the image depicts an identifiable individual
Effective Date
The amendments to G.S. 14-190.5A apply to offenses committed on or after December 1, 2024. This means law enforcement can prosecute AI deepfake intimate image cases that occurred after that date.
Executive Order No. 24: Advancing Trustworthy AI
On September 2, 2025, Governor Josh Stein signed Executive Order No. 24, titled "Advancing Trustworthy Artificial Intelligence That Benefits All North Carolinians." This executive order is the cornerstone of North Carolina's current AI governance framework.
AI Leadership Council
The executive order established the North Carolina AI Leadership Council. The Council's purpose is to advise and support the Governor and state agencies on AI strategy, policy, and training. Key details include:
- Membership: Twenty-five or more members appointed by the Governor
- Leadership: Co-chaired by Secretary of Information Technology Teena Piccione and Secretary of Commerce Lee Lilley
- Representation: Members represent the diversity of stakeholders impacted by AI, including industry, academia, government, and community organizations
- Mission: Ensure North Carolina becomes a national leader in AI literacy, governance, and deployment
AI Accelerator
Executive Order No. 24 created the North Carolina AI Accelerator within the Department of Information Technology (NCDIT). The Accelerator serves as a centralized hub for AI governance, research, partnership, development, implementation, and training across state government.
State Agency Requirements
The executive order imposed concrete obligations on state agencies:
- Each Cabinet agency must identify, document, and propose at least three AI use case proposals within 180 days of the order
- The AI Accelerator evaluates proposals through a structured pilot process
- Agencies must establish AI Oversight Teams to monitor implementation and compliance
Impact on Private Sector
While Executive Order No. 24 primarily applies to state agencies, private companies that contract with or provide services to North Carolina state and local government may face AI governance, data handling, and security requirements through procurement and contract terms. Companies doing business with the state should review their AI practices against the framework outlined in the executive order.
NCDIT Responsible AI Framework
The North Carolina Department of Information Technology has published the North Carolina State Government Responsible Use of Artificial Intelligence Framework, providing detailed guidance for state agencies on reducing privacy and data protection risks when using AI tools.
Pending Deepfake Legislation
Beyond the enacted Session Law 2024-37, North Carolina lawmakers have introduced additional deepfake-related bills in the 2025 session that would expand protections.
HB 375: Artificial Intelligence and Synthetic Media Act
House Bill 375 proposes a new chapter in North Carolina law covering AI and synthetic media. The bill focuses on election-related protections, including definitions for "materially deceptive media" and protections aimed at preventing the misuse of AI-generated content in political campaigns.
Key provisions of HB 375 include:
- Defining what constitutes materially deceptive synthetic media
- Establishing disclosure requirements for AI-generated political content
- Creating enforcement mechanisms for violations involving election interference
- Providing remedies for individuals harmed by deceptive synthetic media
HB 934: Unlawful Distribution of a Deepfake
House Bill 934 takes a broader approach to deepfake regulation beyond intimate images. The bill would make it a criminal offense to distribute audio or video of someone "acting in a manner that the person did not actually speak or act."
Proposed penalties under HB 934 include:
| Violation | Classification | Civil Remedy |
|---|---|---|
| Distributing a deepfake to harass or extort | Class 1 misdemeanor | $1,000 per redistribution |
| Distributing a deepfake to cause harm | Class 1 misdemeanor | $1,000 per redistribution |
| Distributing a deepfake to influence an election | Class 1 misdemeanor | $1,000 per redistribution |
A Class 1 misdemeanor in North Carolina can result in up to 120 days of imprisonment. The civil remedy provision would allow victims to sue distributors for $1,000 in damages each time the deepfake content is redistributed.
Status of Pending Bills
As of March 2026, neither HB 375 nor HB 934 has been enacted. Both bills were introduced during the 2025 session and remain under committee consideration.
Healthcare AI Regulation
North Carolina's legislature has shown particular interest in regulating AI use in healthcare, with multiple bills addressing how insurers and providers use AI in clinical and coverage decisions.
SB 287: AI in Health Insurance Decisions
Senate Bill 287 is the most significant healthcare AI bill introduced in North Carolina. The bill would prevent health insurers from using artificial intelligence-based algorithms as the sole basis for utilization review determinations that deny, delay, or modify healthcare services for insured individuals.
Key provisions of SB 287 include:
- Only licensed and qualified healthcare providers may make determinations regarding medical necessity or appropriateness of healthcare services
- Insurers must verify that all third-party contacts for conducting utilization reviews comply with the act
- Liability for violations extends to agents of the insurer
- The bill reinforces the principle that AI should assist, not replace, human medical judgment in coverage decisions
SB 315 and SB 316: Additional Healthcare AI Bills
The legislature also introduced SB 315 and SB 316 to address related aspects of AI use in healthcare insurance decision-making. These companion bills complement SB 287 by addressing specific scenarios where AI algorithms interact with patient care determinations.
SB 624: AI Chatbot Regulation
Senate Bill 624 takes a different approach to healthcare AI by targeting AI chatbots. The bill proposes comprehensive regulations for AI chatbots in North Carolina, with a particular focus on:
- Licensing requirements for AI chatbot operators
- Safety standards for chatbots handling health information
- Privacy protections for users interacting with AI chatbots
- Requirements for healthcare providers to inform patients when AI is used to determine whether a particular service or treatment is necessary
AI Safety and Innovation
SB 735: AI Innovation Trust Fund
Senate Bill 735 proposes establishing the North Carolina Artificial Intelligence Innovation Trust Fund. The bill would create a special nonreverting fund to support AI development while establishing safety guardrails.
Key definitions and requirements in SB 735 include:
- Developer: Defined as a person that performs the initial training of a covered model
- Safety and security protocol: Documented technical and organizational measures
- Shutdown capability: Requires the capability to promptly enact a full shutdown of covered AI systems
- Advisory panel: The Secretary of Commerce may convene an AI Innovation and Safety Advisory Panel
The bill was proposed with an effective date of July 1, 2025, but was not enacted during the 2025 session.
SB 738: Cryptographic Authentication Standards
Senate Bill 738 addresses digital content authentication through cryptographic standards. This bill responds to concerns about AI-generated content by establishing methods to verify the authenticity and provenance of digital media.
AI in Employment
North Carolina has not enacted specific legislation governing the use of AI in employment and hiring decisions. However, the topic has drawn attention from both lawmakers and legal scholars.
Current Landscape
The UNC Civil Rights Law Review published an analysis in January 2025 examining how AI hiring tools could create discrimination liability for North Carolina employers. The analysis noted that AI systems trained on historical hiring data may perpetuate existing biases based on race, gender, age, or disability status.
Federal Protections Apply
Without state-specific AI employment legislation, North Carolina employers using AI in hiring must comply with:
- Title VII of the Civil Rights Act, which prohibits employment discrimination based on race, color, religion, sex, or national origin
- The Americans with Disabilities Act, which may be implicated when AI screening tools disadvantage candidates with disabilities
- The Age Discrimination in Employment Act, which protects workers over 40 from AI systems that disproportionately screen out older candidates
- The EEOC's guidance on AI and automated systems in employment decisions
Proposed Workforce Study
Senate Bill 746 proposed studying the impact of AI on North Carolina's workforce. While the bill was not enacted, it reflects legislative awareness that AI's effects on employment require systematic analysis and potential regulatory response.
AI in Education
SB 640: AI Ethics and Literacy Across Education
Senate Bill 640 proposes establishing standards for AI instruction in North Carolina schools. The bill recognizes that preparing students to understand and work with AI technology is increasingly important for workforce readiness and responsible citizenship.
NCDIT Framework for Schools
The North Carolina State Government Responsible Use of Artificial Intelligence Framework published by NCDIT provides guidance that extends to public educational institutions, helping schools navigate the use of AI tools in administrative functions and instructional settings.
Additional AI-Related Bills
The 2025 legislative session produced several other AI-related proposals:
| Bill | Topic | Status |
|---|---|---|
| H 970 | Algorithmic rent-fixing prohibition | Pending |
| H 638 / H 1002 | Data center electricity demands | Pending |
| H 936 | AI robocall regulation | Pending |
| S 722 | Online child safety | Pending |
| S 746 | AI workforce impact study | Pending |
| H 1003 | AI research hubs | Pending |
| H 462 | NC Personal Data Privacy Act | Pending |
| S 514 | Data privacy and AI chatbots | Pending |
These bills demonstrate that North Carolina's approach to AI regulation spans consumer protection, infrastructure, telecommunications, child safety, education, and economic development.
Federal AI Policy and North Carolina
Executive Order 14365
President Trump's Executive Order 14365, signed December 11, 2025, established federal AI policy that intersects with state regulatory efforts. The order creates mechanisms for challenging state AI laws and conditions certain federal funding on states' regulatory approaches.
Impact on North Carolina
North Carolina's pending AI legislation interacts with the federal framework in several ways:
Session Law 2024-37 (deepfake intimate images): This enacted law likely falls within federal carve-outs for child safety and criminal law, making it less vulnerable to preemption challenges.
Executive Order No. 24 (state AI governance): The Governor's executive order governs state agency AI use, which falls within states' traditional authority over their own government operations.
Pending healthcare AI bills (SB 287, SB 315, SB 316): These bills regulate health insurance practices, an area where states have traditionally exercised significant authority. However, they could face scrutiny if deemed to impose burdens on AI development that conflict with the federal policy framework.
Broader regulatory proposals: Bills like SB 735 (AI safety requirements) and HB 375 (synthetic media regulation) would need to be evaluated against federal preemption concerns, particularly regarding their impact on AI developers and technology companies.
Data Privacy and AI
North Carolina's data privacy landscape is evolving alongside its AI regulatory efforts.
House Bill 462: NC Personal Data Privacy Act
HB 462 would establish a comprehensive data privacy framework for North Carolina, creating a new chapter focused on data privacy concepts like "controllers" and "processors." While not exclusively an AI bill, the data privacy framework would directly affect how AI systems collect, process, and use personal data.
Existing Protections
North Carolina already has data breach notification requirements under G.S. 75-65 that apply to personal information compromised through AI systems or cyberattacks. These existing protections provide a baseline of data security obligations for organizations using AI.
Looking Ahead: North Carolina's AI Regulatory Future
North Carolina is positioning itself as a state that embraces AI innovation while working to establish guardrails. Several factors will shape the state's AI regulatory future:
Executive leadership: Governor Stein's Executive Order No. 24 and the AI Leadership Council provide a foundation for coordinated AI policy development. The Council's recommendations will likely inform future legislative proposals.
Legislative momentum: The volume of AI bills introduced in the 2025 session signals strong legislative interest. Even though none were enacted during that session, many of these proposals may be reintroduced or incorporated into future legislation.
Healthcare focus: North Carolina's emphasis on regulating AI in healthcare decisions reflects a national trend. As AI tools become more prevalent in insurance coverage determinations, the pressure for legislative action in this area will continue to grow.
Economic considerations: North Carolina's growing technology sector, anchored by the Research Triangle, creates a tension between promoting AI innovation and establishing regulatory guardrails. The AI Innovation Trust Fund proposal (SB 735) illustrates the state's attempt to balance both objectives.
Federal dynamics: The interplay between state AI proposals and federal policy under Executive Order 14365 will continue to shape what North Carolina can and will regulate independently.
More North Carolina Laws
Explore other North Carolina law topics on Recording Law:
Sources and References
- Session Law 2024-37 (HB 591) - Deepfake intimate images amendment(ncleg.gov).gov
- G.S. 14-190.5A - Disclosure of private images statute(ncleg.net).gov
- Governor Stein Executive Order No. 24 on AI(governor.nc.gov).gov
- Governor Stein Announces Executive Order on AI - Press Release(governor.nc.gov).gov
- Senate Bill 287 - AI in Healthcare Insurance Decisions(ncleg.gov).gov
- House Bill 375 - AI and Synthetic Media Act(ncleg.gov).gov
- House Bill 934 - Unlawful Distribution of a Deepfake(ncleg.gov).gov
- Senate Bill 735 - AI Innovation Trust Fund(ncleg.gov).gov
- Senate Bill 624 - AI Chatbot Regulation(ncleg.gov).gov
- NCSL - Artificial Intelligence 2025 Legislation Tracker(ncsl.org)
- UNC School of Government - AI, Government, and the Law Updates(unc.edu)
- UNC Civil Rights Law Review - AI and Hiring Discrimination(unc.edu)