Conner Dickerson: Indiana AI laws: A cautious step into a changing landscape

When it comes to artificial intelligence, it still feels like a lawless frontier in the United States. And that’s not just because the technology is evolving faster than we can comprehend. Most states simply have yet to regulate AI.

Without any federal action, states are trying to balance the potential benefits of AI with concerns over ethics, bias and data privacy. While some states aim to be at the forefront of shaping national conversations around AI law, Indiana has taken a more measured approach, focusing on building a framework for responsible AI use within its own government and specific campaign practices.

Indiana is dipping its toes into regulating AI by studying it and developing robust cybersecurity policies. One key piece of Indiana’s AI legislation is Senate Bill 150, which was signed into law in March.

This bill establishes an Artificial Intelligence Task Force that will begin its work in July and conclude in December 2027. The task force is composed of 15 members, including legislators, representatives from various state agencies, academic professionals, and an individual with expertise in cybersecurity.

The task force will be responsible for studying the current landscape of AI use by state agencies, the potential benefits and risks of this use, and making recommendations for appropriate policies and legislation. The goal is to ensure that any AI systems deployed by the government are secure, reliable, and fair.

Beyond the task force, this law also mandates the development of cybersecurity policies for public entities, including state agencies, schools, and local governments. These policies are set to be implemented by July 2025.

Indiana has also taken a proactive stance on AI in political campaigns. A separate law, effective since March, requires disclaimers on any political materials that use AI-generated content, such as images or videos of candidates. This aims to prevent voters from being misled by synthetic media, a potential concern as AI technology continues to advance.

While Indiana isn’t moving as quickly as other states in regulating AI, it is moving quickly to support its pro-business policies. The Office of Indiana’s Chief Data Officer authored an internal AI policy, mandating the completion of a maturity assessment for the majority of AI projects before their execution.

Industry has been concerned with compliance costs and burdensome reporting requirements, but Indiana is hoping to balance AI benefits and data, ethical, and cybersecurity concerns. The pre-deployment assessment aligns with the National Institute of Standards and Technology’s Artificial Intelligence Risk Management Framework, encompassing 72 subcategories.

The goal is to encourage development teams to adopt human-centric AI-enabled IT rather than a chaotic approach. In compliance with the Indiana Fair Information Practices Act, all users will be informed about how their data is being used by AI.

While Indiana’s approach doesn’t position it as a leader in shaping national AI policy discussions, it reflects a cautious and deliberate strategy.

The state prioritizes building trust in AI technology within its own borders by focusing on internal responsibility and transparency. This includes establishing clear guidelines for government agencies, ensuring data security, and preventing voter manipulation through AI-generated political content. Looking ahead, it will be interesting to see how Indiana’s AI laws evolve.

The work of the AI task force may lead to the development of stricter regulations or specific ethical guidelines for government use of AI. However, for now, Indiana’s approach demonstrates a state prioritizing responsible internal adoption of AI technology over becoming a major player in the national AI policy debate.•

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Conner Dickerson is a member of the Business Services & Litigation and Real Estate Services & Litigation practice groups at Cohen & Malad. Opinions expressed are those of the author.