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Policy

Illinois Just Became the First State to Force AI Companies Into Independent Safety Audits

Illinois Governor JB Pritzker signed Senate Bill 315, the Artificial Intelligence Safety Measures Act, into law on July 6, 2026, making Illinois the third US state — after California and New

AnonymousCryptoCompass newsroom
July 31, 2026
4 min read
NEWS
Illinois Just Became the First State to Force AI Companies Into Independent Safety Audits
CryptoCompass editorial visual for policy coverage.

Illinois Governor JB Pritzker signed Senate Bill 315, the Artificial Intelligence Safety Measures Act, into law on July 6, 2026, making Illinois the third US state — after California and New York — to impose transparency and safety obligations on developers of the largest AI models. Its standout provision goes further than either predecessor: Illinois is the first state to require independent third-party audits of frontier AI developers’ safety practices.

The law applies to “frontier models” — foundation models trained using more than 10^26 floating-point operations of compute — and places the heaviest obligations on “large frontier developers,” defined as those with annual gross revenue exceeding $500 million, according to an analysis from Skadden. Most provisions take effect January 1, 2027, while the audit and safety-framework requirements phase in a year later, on January 1, 2028.

What the audit requirement actually demands

Starting in 2028, covered developers must retain an independent auditor — one with no financial interest in the relationship — to assess compliance annually according to generally accepted auditing standards. The audit must evaluate the developer’s internal controls, including who inside the company is designated and empowered to ensure compliance, and recommend improvements. A high-level summary must be published publicly within 30 days of the developer receiving the report, with the full redacted version going to the Illinois Attorney General and the state’s Emergency Management Agency.

Beyond the audit: transparency and incident reporting

The Act also requires large frontier developers to publish transparency reports alongside new or substantially modified models, covering intended uses, supported languages and modalities, and points of contact, plus summaries of their catastrophic-risk assessments. Developers must maintain a written framework describing how they identify and respond to critical safety incidents, and report incidents posing imminent risk of death or serious injury within 24 hours, with a broader 72-hour window for other safety incidents.

The bigger pattern: a state-level patchwork forming fast

Illinois joins California’s Transparency in Frontier Artificial Intelligence Act and New York’s RAISE Act to create what legal analysts are increasingly describing as a de facto national framework for frontier AI — built entirely at the state level in the absence of comprehensive federal legislation. That patchwork now sits in some tension with the Trump administration’s June 2026 executive order pushing a lighter federal approach, raising an open question about whether Washington eventually moves to preempt state AI laws like Illinois’s.

The law passed with bipartisan support in Illinois’s Democratic-controlled General Assembly, with backing from both AI safety advocates and industry players — a combination that isn’t guaranteed in every state considering similar legislation. Supporters have framed the bill as filling a genuine gap left by federal inaction, while critics within the industry have raised concerns about compliance costs for mid-sized developers that clear the $500 million revenue threshold but lack the legal and audit infrastructure that the largest labs already maintain.

What to watch next

  • Whether Illinois’s audit mandate becomes a template other states adopt, given it goes further than California’s and New York’s laws.
  • How covered developers structure compliance ahead of the January 2027 and 2028 deadlines.
  • Whether federal action preempts or coexists with this growing state-level patchwork.

Sources

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