Illinois sets national standard for AI safety as the first state to mandate audits

Illinois has become the first state to mandate independent third-party audits of artificial intelligence systems, signing the Artificial Intelligence Safety Measures Act into law on Monday, July 6. According to a press release, Governor JB Pritzker called the bipartisan bill “the first and most protective law” against AI in the nation. The law targets developers of the largest frontier AI models, requiring them to disclose safety practices and report critical safety incidents.

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Starting January 1, 2028, large AI developers—those generating over $500 million in annual revenue—must publish and annually update a frontier AI framework addressing catastrophic risks, according to Crowell & Moring LLP. This framework must detail how companies assess risks like cyberattacks or the creation of weapons, incorporate industry best practices, and maintain cybersecurity. Per the governor’s website, developers must also release transparency reports before deploying new or substantially modified systems.

First-in-nation audits and whistleblower protections

The most significant innovation in SB 315 is its requirement for annual independent third-party audits to verify compliance with safety protocols, the Chicago Business Journal confirmed. This verification step is not mirrored in California's or New York’s earlier AI laws. 

Cesar Fernandez of Anthropic said in the governor’s press release that the bill “makes Illinois the first state to pair AI transparency requirements with independent verification, an important step toward the accountability this technology demands.”

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The law also establishes whistleblower protections for employees who raise safety concerns, prohibiting retaliation and requiring anonymous internal reporting channels, the press release stated. Per the National Law Review, companies must report critical safety incidents to the Illinois Emergency Management Agency and the Attorney General within 72 hours, or 24 hours if the incident poses an imminent risk of death. Violations can result in civil penalties of up to $1 million for the first offense and $3 million for subsequent violations.

Lieutenant Governor Juliana Stratton noted in the governor’s announcement that AI brings new risks, especially for young people, but Illinois is showing that “innovation and accountability can go hand in hand.” With business AI use expected to surge, the law aims to fill the gap left by the absence of federal oversight.