Which AI laws have small business exemptions and what the thresholds are. Here is what Indiana businesses need to know in 2026.
Indiana has enacted SB 150 (2024) — Artificial Intelligence and Cybersecurity (state-agency AI inventory). Indiana requires executive- and legislative-branch state agencies to inventory the AI systems they use or are developing and report them to the state Office of Technology and the AI Task Force. This is a government-governance law and imposes no direct private-sector compliance obligation.
State law does not replace federal law — you must comply with both. These federal rules apply to small business ai nationwide:
It depends on the thresholds written into the specific statute, and those are not comparable across laws — some key on employee count or revenue, others on user volume or on the kind of system you deploy. We do not publish a generic small-business exemption for Indiana, because stating one the statute does not contain would be worse than stating none. Read the primary source linked from our Indiana law page to confirm whether you are in scope.
The key deadline in Indiana is In effect since July 1, 2024 (agency inventories; provisions expire Dec 31, 2027). The law is enacted and compliance is required by the deadline above.
Indiana penalties for AI non-compliance: N/A (state-government governance). Who enforces, and how, varies by statute — check the primary source linked from our Indiana law page for the enforcement authority and process that actually applies to you.
Federal law does not currently preempt state AI law. Indiana's AI statutes apply independently of federal rules, and federal laws like ECOA, FCRA, and HIPAA apply alongside them — so you must comply with both.
Best practice: document all AI systems used, conduct an internal audit, implement required disclosures, and keep records for at least 3 years. For high-risk uses like small business ai, consider hiring an independent third-party auditor to validate compliance.
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