Illinois Governor JB Pritzker signed the Artificial Intelligence Safety Measures Act into law on Monday, establishing the nation's first independent safety audit requirement for major artificial intelligence developers.
The law targets developers with more than $500 million in annual gross revenue and massive computing power.
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They must publish transparency frameworks and report critical safety incidents within 72 hours starting January 1, 2028.
Attorney General Kwame Raoul received authority to fine violating companies up to $1 million for initial infractions and up to $3 million for subsequent violations.
The regulatory framework defines catastrophic events as incidents resulting in at least 50 deaths or causing a minimum of $1 billion in total damages.
State Intervention Due to Federal Inaction
"AI is the most significant technological innovation and development of the modern age," said Governor Pritzker.
"When managed properly, it can foster tremendous growth, productivity and innovation across the economy and vastly improve our quality of life.
But with that transformative potential comes catastrophic risk, much of which isn't fully understood yet."
Pritzker noted that state intervention became necessary due to federal inaction on comprehensive technology oversight.
"Where the federal government is unwilling to step up, states must venture once more unto the breach," said Governor Pritzker.
"History has shown time and again that thoughtful regulation is a requirement for sustainable innovation when our economic and national security is at stake."
State lawmakers modeled the transparency rules after prior legislative efforts enacted in New York and California to address emerging technologies.
