State and Federal AI Actions to Keep on Your Radar

The AI industry moves fast, and lawmakers are attempting to catch up. State and federal AI actions are introducing new requirements and compliance obligations for AI developers and deployers. With all the developments in the AI regulatory space, it can be difficult to keep up with major developments. A recent Hinshaw memo highlights six state and federal AI actions that are worth keeping on your radar:

“Trump AI Executive Order: Promoting Advanced AI Innovation and Security

Signed: June 2, 2026

On June 2, President Trump signed an executive order establishing two new federal AI oversight mechanisms. The order does not impose direct compliance obligations on businesses but formalizes the government’s role in the AI development cycle in ways that may affect companies relying on frontier models.

Connecticut Artificial Intelligence Responsibility and Transparency Act

Effective Dates: October 1, 2026; October 1, 2027; July 1, 2027

On May 27, Connecticut Governor Ned Lamont signed SB 5, also known as the Connecticut Artificial Intelligence Responsibility and Transparency Act (the Act), into law.

The Act takes a targeted approach to AI regulation, with key business-facing requirements for automated employment-related decision technologies (AEDT), subscription-based AI services, and generative AI transparency. The Act also directs the state to develop a plan for an AI regulatory sandbox program.

Colorado’s AI Act Revisions

Effective Date: January 1, 2027

On May 14, Colorado Governor Jared Polis signed SB 26-189, revising the 2024 Colorado AI Act. The revised law, the Colorado Automated Decision-Making Technology Act (CADMA), replaces the original governance-heavy framework for “high-risk” AI systems with a narrower, disclosure-focused approach.

Illinois Artificial Intelligence Safety Measures Act (Frontier Model Safety Law)

On July 6, following New York and California, Illinois became the third state to enact a frontier AI safety law, the Artificial Intelligence Safety Measures Act. (the AI Act).

This law imposes transparency, catastrophic-risk management, safety frameworks, and incident-reporting obligations on covered developers, with additional requirements applying to “large frontier developers.”

The AI Act requires covered developers to assess and address potential catastrophic risks posed by frontier models and establish processes for responding to critical safety incidents.

Virginia Independent Verification Organization Framework Study (HB 797 / Chapter 425)

Virginia enacted HB 797, directing the Joint Commission on Technology and Science to study whether the Commonwealth should develop a framework for independent verification organizations that assess AI models or applications against standards designed to prevent personal injury and property damage.

The report, due November 1, must evaluate AI-related risks, measurable risk metrics, existing mitigation standards, approaches in other states, and the feasibility of licensing independent verification organizations.

New Chatbot Laws

State legislatures have moved aggressively in 2026 to regulate AI-powered chatbots, with nearly 100 chatbot-specific bills introduced across 34 states and at the federal level, creating a rapidly expanding patchwork of compliance obligations for companies that develop or deploy conversational AI.”

The tension between state and federal regulation remains unresolved. At this juncture it is impossible to tell how the battle for authority over AI regulation will shake out. This means that companies cannot ignore state law developments. If and when a federal regulatory scheme does come it is unknown which state laws it will attempt to preempt. For now, companies must plan for compliance with all emerging AI regulation.