US AI Law Tracker: Indiana | AI Law Center

State/Terr	AI Scope	Relevant Law	Law Link	Effective Date	Key Requirements	Enforcements & Penalties
Indiana	AI Intimate Images	Amendment of Indiana Law Governing Distribution of Intimate Images	HB 1047	3/12/2024	• Extends prohibitions on the distribution of intimate images to include computer generated images, including images of an individual created or modified by means of a computer software program, artificial intelligence, application, or other design editing tools.	Existing criminal penalties apply.
Indiana	AI in Government	An Act to Amend the Indiana Code Concerning State Offices and Administration	SB256	7/1/2026	• Requires the state, a state agency, or political subdivision to ensure that contracts they enter into for the provision of a technological product or service contain a provision requiring the contractor to confirm that the contractor and any subcontractors working under the contract are not prohibited persons. • A "prohibited person" is a business that is organized under the laws of, headquartered in, or controlled by an individual who is a citizen of, or domiciled in, a foreign adversary. A "foreign adversary" is China, Russia, North Korea, Iran, a country listed under 15 CFR § 791.4, or a country designated by the Governor as a threat to critical infrastructure. • A "technological product or service" is defined as a product or service used for information systems, surveillance, light detection and ranging, or artificial intelligence. • The law applies to new contracts entered into after June 30, 2026, and existing contracts amended or renewed after June 30, 2027. • Prohibits state educational institutions from admitting a foreign student into an artificial intelligence program at the undergraduate, graduate, doctoral, or postdoctoral level on or after August 15, 2026, until after a foreign influence and research security review has been completed for the student.	N/A
Indiana	Automated Decision-Making	Indiana Consumer Data Protection Act	Ind. Code. §24-15-1	1/1/2026	• Provides consumers the right to opt-out of any form of solely automated processing performed on personal data to evaluate, analyze, or predict personal aspects related to an identified or identifiable individual’s economic situation, health or health records, personal preferences, interests, reliability, behavior, location, or movements in furtherance of decisions that produce legal or similarly significant effects concerning the consumer (i.e., the provision or denial of financial or lending services, housing, insurance, education enrollment, criminal justice, employment opportunities, health care services, or access to basic necessities like food and water). • Requires a data protection assessment of each processing activity involving such automated processing of personal data. Other obligations and restrictions may apply depending on the type of data processed.	Up to $7,500 per violation.
Indiana	AI Healthcare	Payment of Health Claims	HB1271	7/1/2026	• Prohibits insurers from using automated processes, systems or tools, including artificial intelligence as the sole basis for downcoding claims based on medical necessity or to submit a health benefits claim, without a human review of the medical record. • Requires an insurer to disclose when artificial intelligence is used to make an adverse determination on a prior authorization or request or to downcode a claim.	Existing penalties apply.

State/Terr

AI Scope

Relevant Law

Law Link

Effective Date

Key Requirements

Enforcements & Penalties

Indiana

AI Intimate Images

Amendment of Indiana Law Governing Distribution of Intimate Images

HB 1047

3/12/2024

• Extends prohibitions on the distribution of intimate images to include computer generated images, including images of an individual created or modified by means of a computer software program, artificial intelligence, application, or other design editing tools.

Existing criminal penalties apply.

Indiana

AI in Government

An Act to Amend the Indiana Code Concerning State Offices and Administration

SB256

7/1/2026

• Requires the state, a state agency, or political subdivision to ensure that contracts they enter into for the provision of a technological product or service contain a provision requiring the contractor to confirm that the contractor and any subcontractors working under the contract are not prohibited persons.

• A "prohibited person" is a business that is organized under the laws of, headquartered in, or controlled by an individual who is a citizen of, or domiciled in, a foreign adversary. A "foreign adversary" is China, Russia, North Korea, Iran, a country listed under 15 CFR § 791.4, or a country designated by the Governor as a threat to critical infrastructure.
• A "technological product or service" is defined as a product or service used for information systems, surveillance, light detection and ranging, or artificial intelligence.
• The law applies to new contracts entered into after June 30, 2026, and existing contracts amended or renewed after June 30, 2027.
• Prohibits state educational institutions from admitting a foreign student into an artificial intelligence program at the undergraduate, graduate, doctoral, or postdoctoral level on or after August 15, 2026, until after a foreign influence and research security review has been completed for the student.

N/A

Indiana

Automated Decision-Making

Indiana Consumer Data Protection Act

Ind. Code. §24-15-1

1/1/2026

• Provides consumers the right to opt-out of any form of solely automated processing performed on personal data to evaluate, analyze, or predict personal aspects related to an identified or identifiable individual’s economic situation, health or health records, personal preferences, interests, reliability, behavior, location, or movements in furtherance of decisions that produce legal or similarly significant effects concerning the consumer (i.e., the provision or denial of financial or lending services, housing, insurance, education enrollment, criminal justice, employment opportunities, health care services, or access to basic necessities like food and water).

• Requires a data protection assessment of each processing activity involving such automated processing of personal data.

Other obligations and restrictions may apply depending on the type of data processed.

Up to $7,500 per violation.

Indiana

AI Healthcare

Payment of Health Claims

HB1271

7/1/2026

• Prohibits insurers from using automated processes, systems or tools, including artificial intelligence as the sole basis for downcoding claims based on medical necessity or to submit a health benefits claim, without a human review of the medical record.

• Requires an insurer to disclose when artificial intelligence is used to make an adverse determination on a prior authorization or request or to downcode a claim.

Existing penalties apply.

Information updated monthly

Indiana

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