Trump loses more control over AI regulation as Illinois passes landmark law

Illinois has enacted the nation's strongest artificial intelligence (AI) safety law, SB 315, which mandates that major AI firms submit public safety plans and conduct third-party safety testing. They must also report critical safety incidents within 72 hours, or 24 hours if there's an imminent risk of serious physical harm or death. This legislation provides whistleblower protections for employees reporting emerging safety concerns.

Illinois Governor J.B. Pritzker has voiced his intent to sign the bill, emphasizing the state's commitment to holding "Big Tech accountable." Both OpenAI and Anthropic, key players in the AI industry, have expressed support for SB 315. Their backing may stem from a desire to establish a consistent regulatory baseline across states, which could inadvertently benefit larger firms while posing challenges for smaller ones.

The law aims to increase transparency, particularly regarding rapid AI developments, and will likely rely on major accounting and auditing firms to verify safety practices. This initiative by Illinois highlights a growing trend of states stepping in due to a lack of federal action on AI regulation, despite concerns from critics about the preparedness of governments and independent auditors to evaluate advanced AI models.

While some industry groups, like Chamber of Progress, oppose the law, citing concerns about exposing sensitive systems to "untested auditors," proponents argue it's essential for establishing "minimal guardrails." Democratic Rep. Daniel Didech, a sponsor of the bill, acknowledged that federal regulation would be ideal but stated that states have been compelled to act given the rapid pace of technological development and the absence of federal protections.

Starting January 1, 2027, AI firms will be subject to the law's provisions, with potential civil penalties for violations. This legislative effort by Illinois is viewed by policymakers and advocacy groups as a crucial step towards ensuring that AI is developed and used responsibly, balancing its transformative potential with the imperative to prevent catastrophic risks.