38 US states enacted AI laws in 2025.
Most businesses don't know they apply.
There's no single federal AI law — but that doesn't mean no obligations. California, Colorado, Texas, and Illinois laws are live right now. If you use AI in any US hiring decision, Illinois law already applies to you. If you have California customers, California law applies. Most businesses are non-compliant and don't know it.
"No federal AI law" does not mean "no obligation."
The most common mistake US businesses make is waiting for federal legislation before acting. State laws don't wait. They're enforced now. And most of them apply to you regardless of which state your business is registered in — it's about where your employees and customers are.
Illinois HB 3773 applies to any employer using AI in hiring, promotion, or performance review decisions — regardless of which state the employer is based in. Written notice is required.
The Colorado AI Act requires annual impact assessments and consumer disclosure rights for any AI system influencing decisions about employment, credit, housing, insurance, education, or healthcare.
The California AI Transparency Act and Automated Decision-Making Technology regulations require disclosure and opt-out rights for consumers subject to AI-driven decisions.
Texas RAIGA prohibits intentional AI discrimination and requires policies and audit trails for AI systems used in employment, lending, housing, education, and healthcare decisions.
In 2025, state legislators introduced over 1,100 AI-related bills across all 50 states. 145 were enacted. More are coming.
US AI law moved faster than anyone expected.
Illinois amends its AI Video Interview Act. New York City Local Law 144 requires bias audits for AI hiring tools. The foundation is laid.
Colorado passes the most comprehensive US state AI law. California enacts multiple AI transparency measures. The patchwork accelerates.
38 states enacted AI legislation in 2025. Four major state AI compliance regimes are now fully enforceable. If you haven't built your compliance framework yet, you're already behind.
The America AI Act is in active discussion in the Senate. A federal framework will eventually preempt or augment state laws. Businesses compliant now will not need to scramble when it passes.
If any of these apply to your business, you have compliance obligations today.
- Using AI tools to screen CVs, rank candidates, or assist with any US hiring decision
- AI-assisted performance reviews, promotion decisions, or disciplinary actions for US employees
- AI chatbots or automated systems interacting with California, Colorado, or Texas customers
- Automated decision-making affecting consumer credit, insurance, or housing for US residents
- AI tools processing personal data of residents in any of the 20 states with active privacy laws
- Any business that wants to be ready for federal AI legislation when it passes
US AI Compliance Packages.
Every package builds a documented compliance position for your business. Prices in GBP — approximate USD and EUR equivalents shown. Stripe accepts all major cards.
~$250 · ~€230
- AI Acceptable Use Policy
- Employee AI guidelines
- AI tool inventory template
- Plain-English summary of obligations by state
Best for: small businesses wanting a baseline policy that covers all 50 states before specific obligations kick in.
Turnaround: 3–5 working days
~$1,010 · ~€930
- Everything in US AI Policy
- State obligations assessment (CA, CO, TX, IL)
- Employment AI disclosure notices
- Algorithmic discrimination prevention procedures
- Consumer-facing AI transparency disclosures
- Data processing documentation for AI tools
Best for: businesses operating in or serving customers in California, Colorado, Texas, or Illinois — or any business using AI in US employment decisions.
Turnaround: 5–7 working days
~$1,900 · ~€1,750
- Everything in US AI Compliance Foundation
- Multi-state compliance matrix
- Full HR AI procedures and disclosure templates
- Impact assessment templates for high-risk AI use
- Incident response procedure
- Federal legislation readiness assessment
- 12-month policy update included
Best for: multi-state businesses, businesses with 15+ employees, or any business wanting a comprehensive position ahead of federal legislation.
Turnaround: 7–10 working days · Valid for 12 months
Annual update available at £497 as new state laws are enacted.
Ongoing Compliance
~$250 · ~€230/month
6-month minimum term, then rolling monthly with 30 days' notice.
- New state AI laws monitored and applied to your framework
- Federal legislation tracking — policy updated when it passes
- Quarterly compliance reviews
- New state coverage added automatically as laws are enacted
- Priority support for HR or regulatory enquiries
Best for: businesses that operate nationally and can't afford to track 50 state legislatures themselves.
How we build your US AI compliance framework.
Audit
We identify every AI tool your business uses, what decisions it influences, and which employees and customers are affected.
Assess States
We map your operations against active state laws — California, Colorado, Texas, Illinois, and any other states you operate in — and identify your specific obligations.
Document
We build your compliance framework — acceptable use policy, state-specific disclosures, HR notices, impact assessments, and incident procedures.
Maintain
On a managed plan, we monitor new state laws and federal developments and update your framework automatically — so you never have to track this yourself.
Straight answers.
Does US state law apply to a non-US business?
In many cases, yes. If you have US-based employees or customers in states with active AI laws, those laws can apply to you regardless of where your business is incorporated. California law applies based on where your customers are. Illinois employment AI law applies based on where your employees are. If you're a UK or European business with US operations or staff, you're likely in scope for at least some of these laws.
What does Illinois law actually require?
Illinois HB 3773 requires employers to provide written notice before using an AI system to make or assist with employment decisions — including hiring, firing, promotion, demotion, and performance evaluation. This applies to employers with 15 or more employees. The notice must explain how the AI is used and what characteristics it evaluates. Violation can result in complaints to the Illinois Department of Human Rights.
My business is in a state that hasn't passed AI laws. Am I safe?
Not necessarily. Two things still apply to you: first, if you have customers or employees in California, Colorado, Texas, or Illinois, those states' laws apply. Second, state privacy laws (CCPA in California, VCDPA in Virginia, the Colorado Privacy Act, and others in 20 states) already cover automated decision-making systems that process personal data — and most AI tools qualify. A baseline AI policy protects you regardless of your state.
What is the federal AI legislation being discussed?
The America AI Act is a Senate bill in active discussion as of early 2026. It aims to establish a uniform federal AI framework that would apply across all 50 states and preempt conflicting state laws. The direction of the legislation aligns with governance principles from Colorado and California — meaning businesses that are already compliant with those state laws will be well-positioned when federal rules pass.
What happens if I don't comply?
Penalties vary by state. California's AI transparency laws carry significant fines for non-compliance. Colorado's AI Act allows the Attorney General to enforce violations, with civil penalties per affected consumer. Illinois employment AI violations can be filed with the state Department of Human Rights. Beyond direct fines, non-compliance creates exposure in employment disputes and consumer litigation where your AI practices come under scrutiny.
Is this legal advice?
No. We produce compliance documentation frameworks and policy documents — we are not US attorneys. For businesses in regulated sectors or facing specific enforcement actions, we recommend reviewing your documentation with US-qualified legal counsel. For most businesses using standard AI tools, our frameworks provide a practical, well-documented compliance position that demonstrates good-faith effort.
Get compliant before more states add requirements.
145 AI bills were enacted in the US in 2025. That number will be higher in 2026. Building your compliance framework now means you adapt, not scramble, as new laws pass.
See the Packages →Or book a free 20-minute call to discuss your situation — scott@opsintel.io