North Carolina AI Laws and Regulation (2026)

North Carolina regulates AI through two main actions: Session Law 2024-37 extended several criminal statutes to AI-generated imagery effective December 1, 2024, covering the nonconsensual disclosure of deepfake intimate images under G.S. 14-190.5A and obscene AI-generated depictions of minors under a new G.S. 14-190.17C, and Executive Order No. 24, signed in September 2025, created the NC AI Leadership Council and a state agency AI governance framework. No comprehensive private-sector AI statute exists yet.

Overview of North Carolina AI Laws

North Carolina is actively developing its approach to artificial intelligence regulation. While the state does not yet have a single comprehensive AI statute governing all private-sector AI use, it has taken significant steps through executive action and targeted legislation.

The most notable enacted law is Session Law 2024-37 (HB 591), which expanded existing criminal penalties to cover AI-generated imagery, both deepfake intimate images of adults and obscene depictions of minors. Governor Josh Stein further shaped the state's AI posture by signing Executive Order No. 24 on September 2, 2025, creating a state AI governance framework.

The 2025 legislative session saw an unprecedented wave of AI-related bills. Though none were enacted during that session, the breadth of proposals covering deepfakes, healthcare AI, chatbot regulation, AI safety, workforce impacts, and education demonstrates that comprehensive AI regulation is a priority for North Carolina lawmakers. In 2026, House Bill 1161 gathered much of that agenda into a single omnibus proposal.

This article covers North Carolina's enacted and pending AI legislation, the Governor's executive order, and how federal policy intersects with state efforts. It was last reviewed in September 2026. Bill status in North Carolina changes quickly, so confirm the current status of any bill named here with the General Assembly before relying on it, and consult an attorney for advice specific to your situation.

Enacted Law: Deepfake Intimate Images (Session Law 2024-37)

North Carolina's most significant enacted AI legislation is Session Law 2024-37, signed into law in 2024. This law amended G.S. 14-190.5A, North Carolina's disclosure of private images statute, to explicitly cover AI-generated and synthetically manipulated content.

What the Law Changed

Before this amendment, G.S. 14-190.5A only applied to real images of identifiable individuals. Session Law 2024-37 expanded the definition of "image" to include "a realistic visual depiction created, adapted, or modified by technological means, including algorithms or artificial intelligence, such that a reasonable person would believe the image depicts an identifiable individual."

This means that disclosing an AI-generated intimate image can be prosecuted the same way as disclosing a real nonconsensual intimate image.

Criminal Penalties

The penalties under G.S. 14-190.5A apply equally to real and AI-generated intimate images:

A Class H felony in North Carolina carries a presumptive sentence range of 5 to 6 months of imprisonment for a first offense, though active sentences may be suspended in favor of probation depending on the offender's prior record.

Key Elements of the Offense

Subsection (b) of the statute lists five elements, and a prosecutor has to prove all of them:

• The person knowingly disclosed an image of another person with the intent to coerce, harass, intimidate, demean, humiliate, or cause financial loss to the depicted person, or to cause others to do so
• The depicted person is identifiable from the disclosed image itself or from information offered in connection with the image
• The depicted person's intimate parts are, or are realistically depicted to be, exposed, or the depicted person is, or is realistically depicted to be, engaged in sexual conduct
• The image was disclosed without the affirmative consent of the depicted person
• The person obtained, created, adapted, or modified the image without the consent of the depicted person, or under circumstances such that the person knew or should have known that the depicted person expected the images to remain private

Two points get misreported often enough to be worth stating plainly. First, creating an AI-generated intimate image is not by itself an offense under this section: the conduct the statute punishes is the knowing disclosure, and only where the discloser acted with one of the listed intents. Absence of consent alone does not complete the crime. Second, the fifth element is written in the alternative, so it can be satisfied either by a lack of consent to obtaining or making the image or by circumstances where the person knew or should have known the images were expected to stay private, which means an image the depicted person originally shared willingly can still fall inside the statute.

For an AI-generated depiction, the definition of "image" in subsection (a)(2) adds a further requirement on top of those elements: a reasonable person would have to believe the image depicts an identifiable individual.

Exceptions

Subsection (d) places three categories outside the statute entirely:

• Images involving voluntary exposure in public or commercial settings
• Disclosures made in the public interest, including the reporting of unlawful conduct, the lawful and common practices of law enforcement, criminal reporting, legal proceedings, medical treatment, and scientific or educational activities
• Providers of an interactive computer service, as defined in 47 U.S.C. 230(f), for images provided by another person

The third exception matters on a page about AI-generated content. A platform that hosts or transmits a deepfake image supplied by someone else is outside the reach of this criminal section, which leaves the person who disclosed the image as the target of enforcement.

Effective Date

The amendments to G.S. 14-190.5A apply to offenses committed on or after December 1, 2024. This means law enforcement can prosecute AI deepfake intimate image cases that occurred after that date.

Beyond Intimate Images: AI Depictions of Minors

Session Law 2024-37 was not limited to G.S. 14-190.5A. The same act rewrote parts of Article 26 of Chapter 14 so that the state's child exploitation offenses reach AI-generated material:

• G.S. 14-190.13: the definition of "material" that governs the child exploitation offenses now includes "digital or computer-generated visual depictions or representations created, adapted, or modified by technological means, such as algorithms or artificial intelligence." The same section defines an "identifiable minor" by face, likeness, or other distinguishing characteristic and states that proof of the minor's actual identity is not required.
• G.S. 14-190.17C: a new offense of obscene visual representation of sexual exploitation of a minor. Knowingly producing, distributing, receiving, or possessing with intent to distribute obscene material that depicts a minor engaging in sexual activity is a Class E felony, and knowing possession of such material is a Class H felony. Subsection (c) states that it is not a required element of any offense under the section that the minor depicted actually exist, which is what allows it to reach fully synthetic AI-generated material.
• G.S. 14-202.7: the sexual extortion statute carries the same AI-inclusive definition of "image," so a threat to disclose an AI-generated private image can support a sexual extortion charge. Sexual extortion is a Class F felony for an adult offender, and aggravated sexual extortion, where the victim is a minor or an individual with a disability and the offender is an adult, is a Class E felony.

Measured by substance, the AI-generated child sexual abuse material provision is the larger half of what North Carolina actually enacted in 2024, even though the deepfake nude amendment drew most of the coverage.

Executive Order No. 24: Advancing Trustworthy AI

On September 2, 2025, Governor Josh Stein signed Executive Order No. 24, titled "Advancing Trustworthy Artificial Intelligence That Benefits All North Carolinians." This executive order is the cornerstone of North Carolina's current AI governance framework.

AI Leadership Council

The executive order established the North Carolina AI Leadership Council. The Council's purpose is to advise and support the Governor and state agencies on AI strategy, policy, and training. Key details include:

• Membership: Twenty-five or more members appointed by the Governor
• Leadership: Co-chaired by Secretary of Information Technology Teena Piccione and Secretary of Commerce Lee Lilley
• Representation: Members represent the diversity of stakeholders impacted by AI, including industry, academia, government, and community organizations
• Mission: Ensure North Carolina becomes a national leader in AI literacy, governance, and deployment

AI Accelerator

Executive Order No. 24 created the North Carolina AI Accelerator within the Department of Information Technology (NCDIT). The Accelerator serves as a centralized hub for AI governance, research, partnership, development, implementation, and training across state government.

State Agency Requirements

The executive order imposed concrete obligations on state agencies:

• Each Cabinet agency must identify, document, and propose at least three AI use case proposals within 180 days of the order
• The AI Accelerator evaluates proposals through a structured pilot process
• Agencies must establish AI Oversight Teams to monitor implementation and compliance

Impact on Private Sector

While Executive Order No. 24 primarily applies to state agencies, private companies that contract with or provide services to North Carolina state and local government may face AI governance, data handling, and security requirements through procurement and contract terms. Companies doing business with the state should review their AI practices against the framework outlined in the executive order.

NCDIT Responsible AI Framework

The North Carolina Department of Information Technology has published the North Carolina State Government Responsible Use of Artificial Intelligence Framework, providing detailed guidance for state agencies on reducing privacy and data protection risks when using AI tools.

House Bill 1161: Omnibus Artificial Intelligence Protections

The broadest AI proposal in North Carolina to date is House Bill 1161, "Omnibus Artificial Intelligence Protections," filed April 30, 2026 by Representatives Logan, Cervania, Greenfield, and Hawkins. It pulls most of the subjects the 2025 session handled in separate bills into a single act.

Part III would be enforced by the Attorney General through civil fines of $500 to $5,000 per day, and the bill carries appropriations to the Department of Public Instruction, the State Human Resources Commission, the Department of Justice, the Department of Administration, and the Office of State Budget and Management.

Everything in the table above is drawn from the text of the filed bill, which is a proposal and not current law. Check the General Assembly's own bill page for where HB 1161 stands before relying on any of it.

Pending Deepfake Legislation

Beyond the enacted Session Law 2024-37, North Carolina lawmakers have introduced additional deepfake-related bills in the 2025 session that would expand protections.

HB 375: Artificial Intelligence and Synthetic Media Act

House Bill 375 proposes a new chapter in North Carolina law covering AI and synthetic media. The bill focuses on election-related protections, including definitions for "materially deceptive media" and protections aimed at preventing the misuse of AI-generated content in political campaigns.

Key provisions of HB 375 include:

• Defining what constitutes materially deceptive synthetic media
• Establishing disclosure requirements for AI-generated political content
• Creating enforcement mechanisms for violations involving election interference
• Providing remedies for individuals harmed by deceptive synthetic media

HB 934: Unlawful Distribution of a Deepfake

House Bill 934 takes a broader approach to deepfake regulation beyond intimate images. The bill would make it a criminal offense to distribute audio or video of someone "acting in a manner that the person did not actually speak or act."

Proposed penalties under HB 934 include:

A Class 1 misdemeanor in North Carolina can result in up to 120 days of imprisonment. The civil remedy provision would allow victims to sue distributors for $1,000 in damages each time the deepfake content is redistributed.

Status of Pending Bills

As of the last status check in March 2026, neither HB 375 nor HB 934 had been enacted. Both bills were introduced during the 2025 session.

Healthcare AI Regulation

North Carolina's legislature has shown particular interest in regulating AI use in healthcare, with multiple bills addressing how insurers and providers use AI in clinical and coverage decisions.

SB 287: AI in Health Insurance Decisions

Senate Bill 287 is the most significant healthcare AI bill introduced in North Carolina. The bill would prevent health insurers from using artificial intelligence-based algorithms as the sole basis for utilization review determinations that deny, delay, or modify healthcare services for insured individuals.

Key provisions of SB 287 include:

• Only licensed and qualified healthcare providers may make determinations regarding medical necessity or appropriateness of healthcare services
• Insurers must verify that all third-party contacts for conducting utilization reviews comply with the act
• Liability for violations extends to agents of the insurer
• The bill reinforces the principle that AI should assist, not replace, human medical judgment in coverage decisions

SB 315 and SB 316: Additional Healthcare AI Bills

The legislature also introduced SB 315 and SB 316 to address related aspects of AI use in healthcare insurance decision-making. These companion bills complement SB 287 by addressing specific scenarios where AI algorithms interact with patient care determinations.

SB 624: AI Chatbot Regulation

Senate Bill 624 takes a different approach to healthcare AI by targeting AI chatbots. The bill proposes comprehensive regulations for AI chatbots in North Carolina, with a particular focus on:

• Licensing requirements for AI chatbot operators
• Safety standards for chatbots handling health information
• Privacy protections for users interacting with AI chatbots
• Requirements for healthcare providers to inform patients when AI is used to determine whether a particular service or treatment is necessary

AI Safety and Innovation

SB 735: AI Innovation Trust Fund

Senate Bill 735 proposes establishing the North Carolina Artificial Intelligence Innovation Trust Fund. The bill would create a special nonreverting fund to support AI development while establishing safety guardrails.

Key definitions and requirements in SB 735 include:

• Developer: Defined as a person that performs the initial training of a covered model
• Safety and security protocol: Documented technical and organizational measures
• Shutdown capability: Requires the capability to promptly enact a full shutdown of covered AI systems
• Advisory panel: The Secretary of Commerce may convene an AI Innovation and Safety Advisory Panel

The bill was proposed with an effective date of July 1, 2025, but was not enacted during the 2025 session.

SB 738: Cryptographic Authentication Standards

Senate Bill 738 addresses digital content authentication through cryptographic standards. This bill responds to concerns about AI-generated content by establishing methods to verify the authenticity and provenance of digital media.

AI in Employment

North Carolina has no AI-specific employment statute in force from its earlier sessions. The topic has drawn attention from both lawmakers and legal scholars, and Part III of House Bill 1161, filed April 30, 2026, would change that by creating a Fair AI Hiring Act.

Current Landscape

The UNC Civil Rights Law Review published an analysis in January 2025 examining how AI hiring tools could create discrimination liability for North Carolina employers. The analysis noted that AI systems trained on historical hiring data may perpetuate existing biases based on race, gender, age, or disability status.

Federal Protections Apply

With no state AI employment statute in force, North Carolina employers using AI in hiring must comply with:

• Title VII of the Civil Rights Act, which prohibits employment discrimination based on race, color, religion, sex, or national origin
• The Americans with Disabilities Act, which may be implicated when AI screening tools disadvantage candidates with disabilities
• The Age Discrimination in Employment Act, which protects workers over 40 from AI systems that disproportionately screen out older candidates
• The EEOC's guidance on AI and automated systems in employment decisions

Proposed Legislation

Senate Bill 746 proposed studying the impact of AI on North Carolina's workforce. It was not enacted in the 2025 session. The Fair AI Hiring Act in Part III of HB 1161 goes considerably further than a study: it would require an independent bias audit of any automated employment decision tool within the 12 months before an employer uses it, public disclosure of that audit, and advance notice to job candidates, with Attorney General enforcement.

AI in Education

SB 640: AI Ethics and Literacy Across Education

Senate Bill 640 proposes establishing standards for AI instruction in North Carolina schools. The bill recognizes that preparing students to understand and work with AI technology is increasingly important for workforce readiness and responsible citizenship.

Part II of HB 1161 would approach the same subject from a different direction, letting local boards of education restrict student access to AI tools and directing the UNC System and community colleges to develop classroom AI standards.

NCDIT Framework for Schools

The North Carolina State Government Responsible Use of Artificial Intelligence Framework published by NCDIT provides guidance that extends to public educational institutions, helping schools navigate the use of AI tools in administrative functions and instructional settings.

Additional AI-Related Bills

The 2025 legislative session produced several other AI-related proposals:

These bills demonstrate that North Carolina's approach to AI regulation spans consumer protection, infrastructure, telecommunications, child safety, education, and economic development.

Federal AI Policy and North Carolina

Executive Order 14365

President Trump's Executive Order 14365, signed December 11, 2025, established federal AI policy that intersects with state regulatory efforts. The order creates mechanisms for challenging state AI laws and conditions certain federal funding on states' regulatory approaches.

Impact on North Carolina

North Carolina's pending AI legislation interacts with the federal framework in several ways:

Session Law 2024-37 (deepfake intimate images and AI depictions of minors): This enacted law likely falls within federal carve-outs for child safety and criminal law, making it less vulnerable to preemption challenges.

Executive Order No. 24 (state AI governance): The Governor's executive order governs state agency AI use, which falls within states' traditional authority over their own government operations.

Pending healthcare AI bills (SB 287, SB 315, SB 316): These bills regulate health insurance practices, an area where states have traditionally exercised significant authority. However, they could face scrutiny if deemed to impose burdens on AI development that conflict with the federal policy framework.

Broader regulatory proposals: Bills like SB 735 (AI safety requirements), HB 375 (synthetic media regulation), and HB 1161 (omnibus protections) would need to be evaluated against federal preemption concerns, particularly regarding their impact on AI developers and technology companies.

Data Privacy and AI

North Carolina's data privacy landscape is evolving alongside its AI regulatory efforts.

House Bill 462: NC Personal Data Privacy Act

HB 462 would establish a comprehensive data privacy framework for North Carolina, creating a new chapter focused on data privacy concepts like "controllers" and "processors." While not exclusively an AI bill, the data privacy framework would directly affect how AI systems collect, process, and use personal data.

Existing Protections

North Carolina already has data breach notification requirements under G.S. 75-65 that apply to personal information compromised through AI systems or cyberattacks. These existing protections provide a baseline of data security obligations for organizations using AI.

Looking Ahead: North Carolina's AI Regulatory Future

North Carolina is positioning itself as a state that embraces AI innovation while working to establish guardrails. Several factors will shape the state's AI regulatory future:

Executive leadership: Governor Stein's Executive Order No. 24 and the AI Leadership Council provide a foundation for coordinated AI policy development. The Council's recommendations will likely inform future legislative proposals.

Legislative momentum: The volume of AI bills introduced in the 2025 session signals strong legislative interest, and the omnibus HB 1161 filed in April 2026 shows that interest consolidating into a single vehicle rather than fading.

Healthcare focus: North Carolina's emphasis on regulating AI in healthcare decisions reflects a national trend. As AI tools become more prevalent in insurance coverage determinations, the pressure for legislative action in this area will continue to grow.

Economic considerations: North Carolina's growing technology sector, anchored by the Research Triangle, creates a tension between promoting AI innovation and establishing regulatory guardrails. The AI Innovation Trust Fund proposal (SB 735) illustrates the state's attempt to balance both objectives.

Federal dynamics: The interplay between state AI proposals and federal policy under Executive Order 14365 will continue to shape what North Carolina can and will regulate independently.

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