South Dakota AI Laws and Regulation (2026)
Overview of South Dakota AI Laws
South Dakota has taken a focused approach to artificial intelligence regulation, concentrating primarily on deepfakes and synthetic media rather than pursuing broad AI governance legislation. As of March 2026, the state has three enacted AI-specific laws addressing election deepfakes, AI-generated child exploitation material, and nonconsensual adult deepfake pornography.
The state's most recent AI law, Senate Bill 41, was signed by Governor Larry Rhoden on March 17, 2026, making the creation and distribution of deepfake pornography a felony. This builds on the state's 2024 law criminalizing AI-generated child sexual abuse material and the 2025 election deepfake disclosure law.
South Dakota does not have comprehensive AI regulation covering areas like employment, healthcare, or general-purpose AI systems. The state has instead relied on executive-level guidance for state government AI use and a legislative study committee to explore broader AI policy. This article covers South Dakota's enacted and pending AI legislation, state guidance, and the federal policy landscape. This information is current as of March 2026, but you should consult an attorney for advice specific to your situation.
SB 41: Nonconsensual Adult Deepfake Pornography (2026)
Governor Rhoden signed Senate Bill 41 into law on March 17, 2026, making South Dakota one of the latest states to criminalize nonconsensual adult deepfake pornography. The bill was proposed by Attorney General Marty Jackley as part of his 2026 legislative package.
Key Provisions
SB 41 creates a felony offense for creating, possessing, or distributing computer-generated images that depict a person in a state of nudity or engaging in sexually explicit acts without that person's consent. The bill adds these provisions to South Dakota's existing law on nonconsensual recording and photographing.
Penalties
| Offense | Classification | Maximum Penalty |
|---|---|---|
| Creation of nonconsensual deepfake | Felony | Up to 2 years imprisonment |
| Possession of nonconsensual deepfake | Felony | Up to 2 years imprisonment |
| Distribution of nonconsensual deepfake | Felony | Up to 2 years imprisonment |
Legislative Process
The bill was amended on the House floor to more clearly define what constitutes nudity, addressing concerns about unintended consequences raised during committee hearings. The State Senate had previously given unanimous approval to the bill.
Effective Date
SB 41 takes effect on July 1, 2026.
SB 164: Election Deepfake Disclosure Law (2025)
Senate Bill 164, signed by Governor Rhoden on March 31, 2025, was South Dakota's first AI-specific law. The bill prohibits the use of deepfakes to influence elections and establishes disclosure requirements and penalties.
What the Law Prohibits
The law makes it illegal to disseminate a deepfake of a candidate within 90 days of an election with the intent to injure that candidate, if the person knows or reasonably should know the content is a deepfake and does not include the required disclosure.
Disclosure Requirements
The law establishes specific disclosure standards based on the type of media:
For images and video: The disclosure text must appear in a size that is easily readable by the average viewer and be no smaller than the largest font size of other text in the image or video. The disclosure must be superimposed over each deepfake.
For audio recordings: The disclosure must be read in a clearly spoken manner and in a pitch that is easily heard by the average listener at the beginning and end of the audio recording.
The required disclosure language reads: "This [image/video/audio] has been digitally generated or manipulated and is not an accurate representation of fact or actual events."
Penalties and Enforcement
| Violation | Penalty |
|---|---|
| Criminal | Class 1 misdemeanor: up to 1 year imprisonment, up to $2,000 fine |
| Civil | Affected candidates may seek damages; plaintiff must prove knowing misuse by clear and convincing evidence |
Affirmative Defense
The law provides an affirmative defense for any person who includes the proper disclosure statement. Including a properly formatted disclosure on deepfake content is a complete defense against both criminal and civil liability.
Exemptions
The law includes exemptions for:
- Satire and parody
- Broadcasters, newspapers, websites, and radio stations
- News broadcasts that clearly acknowledge the deepfake's questionable authenticity
These exemptions were included after some "election integrity" activists spoke out against the labeling requirements during public hearings.
AI-Generated Child Sexual Abuse Material Law (2024)
South Dakota enacted legislation in 2024 criminalizing AI-generated child sexual abuse material as a felony. The law was championed by Attorney General Jackley and revised the state's existing child pornography definitions to include artificial intelligence-generated content.
Scope of the Law
The 2024 law covers two categories of AI-generated material:
- Deepfake manipulation of actual children: Images or videos of an actual child that have been digitally altered to depict the child engaged in prohibited sexual acts
- Fully synthetic AI images: AI-generated images that do not depict any actual person but have been created to look like a child engaged in prohibited sexual acts
Both categories carry felony penalties, bringing South Dakota in line with the majority of states that have criminalized AI-generated CSAM. The 2026 deepfake pornography law (SB 41) extends similar protections to adult victims.
Legislative Study Committee on AI
The South Dakota Legislature established the Study Committee on Artificial Intelligence and Regulation of Internet Access by Minors during the 2024 interim period. The committee was co-chaired by Sen. Steve Kolbeck (R-Brandon) and Rep. Mike Weisgram (R-Fort Pierre).
Committee Activities
The study committee met multiple times during 2024 and heard from state and national technology professionals about AI risks and regulation. Key topics included:
- AI's impact on youth and internet safety
- Data poisoning and AI security risks
- Power requirements for AI data centers
- Potential regulatory frameworks for AI in South Dakota
- Economic opportunities from AI development
Outcomes
The committee's work informed the 2025 legislative session, which produced SB 164 (election deepfakes) and continued discussions about broader AI governance. The study committee structure reflects South Dakota's cautious, research-first approach to AI regulation.
State Government AI Guidance
The South Dakota Bureau of Information and Telecommunications (BIT) has issued generative AI guidance for state agencies. While not a binding regulation, the guidance establishes principles for responsible AI use in state government operations.
Key Principles
BIT promotes a balanced approach that acknowledges AI's potential to enhance efficiency while recognizing risks related to bias, privacy, and cybersecurity. The state guidelines establish several core practices:
- AI-generated content should be proofed, edited, and fact-checked before use
- AI output should be treated as a starting point, not a final product
- State employees should use AI tools intentionally, transparently, and safely
- Agencies should understand the data privacy implications of AI tools
Delayed Binding Policy
BIT has intentionally delayed implementation of an official binding AI policy, noting that the technology is evolving rapidly and any policy created now may not meet future needs. The current guidance represents an interim framework that allows agencies to experiment with AI while maintaining basic safeguards.
Current AI Applications
South Dakota has deployed AI in several government applications, including an AI chatbot within the citizen portal that helps residents access state services. The state's new CIO has indicated plans to expand AI and data capabilities across state operations.
AI in Employment and Healthcare
South Dakota has not enacted any AI-specific legislation governing employment decisions, hiring practices, or healthcare applications. The state has no pending bills in these areas as of March 2026.
Employers and healthcare providers in South Dakota using AI tools must comply with existing federal and state anti-discrimination laws. AI systems that produce biased outcomes in employment or healthcare decisions could create liability under federal civil rights protections, even in the absence of state-specific AI regulation.
Federal AI Policy and South Dakota
Executive Order 14365
President Trump's Executive Order 14365, signed December 11, 2025, establishes mechanisms to challenge state AI laws and conditions certain federal funding on states' regulatory approaches.
Senate AI Moratorium Removed
In a development particularly relevant to South Dakota, the U.S. Senate removed a provision from a budget reconciliation bill that would have enacted a 10-year prohibition on states from enforcing or regulating any type of AI legislation. The removal of this moratorium preserved South Dakota's ability to continue enacting state-level AI laws.
Senator Rounds' AI Leadership
South Dakota's U.S. Senator Mike Rounds has been active in federal AI policy. Rounds reintroduced the Unleashing AI Innovation in Financial Services Act, which would create a regulatory sandbox for AI experimentation in the financial services industry. South Dakota stakeholders, including representatives from the banking and technology sectors, have responded positively to Rounds' AI policy roadmap.
Impact on South Dakota's Laws
South Dakota's current AI laws are well-positioned under the federal framework:
Enacted deepfake laws (likely protected): All three enacted laws addressing election deepfakes, child exploitation, and nonconsensual intimate imagery fall within EO 14365's protected carve-outs for public safety, election integrity, and child protection.
Minimal regulatory burden: South Dakota's approach of targeting specific harms rather than creating comprehensive AI regulation aligns with the executive order's emphasis on preventing state laws from hindering AI development.
Conservative governance alignment: South Dakota's generally business-friendly regulatory philosophy is consistent with the federal administration's pro-innovation AI policy.
More South Dakota Laws
Explore other South Dakota law topics on Recording Law:
Sources and References
- SB 41 signed into law - deepfake pornography felony(southdakotasearchlight.com)
- Attorney General Jackley 2026 legislative package including deepfakes(southdakotasearchlight.com)
- South Dakota Attorney General press release on deepfake law(atg.sd.gov).gov
- SB 164 election deepfake law - bill text(sdlegislature.gov).gov
- South Dakota cracks down on unlabeled deepfakes in elections(akingump.com)
- South Dakota BIT AI guidance for state agencies(sd.gov).gov
- South Dakota generative AI guidelines for state use(digitalgovernmenthub.org)
- South Dakota Legislature Study Committee on AI(sdlegislature.gov).gov
- SD lawmakers seek answers on AI regulation(sdpb.org)
- US Senate removes state AI moratorium from reconciliation bill(sdpb.org)
- Senator Rounds AI roadmap for financial services(rounds.senate.gov).gov
- Executive Order 14365 on AI state preemption(whitehouse.gov).gov
- State Senate approves AG Jackley deepfake bills(kotatv.com)
- Election integrity activists speak against deepfake labels(southdakotasearchlight.com)
- SD AI-generated child pornography law 2024(kotatv.com)
- State laws criminalizing AI-generated CSAM tracker(enoughabuse.org)
- South Dakota deepfake election bill coverage(thehill.com)