Indiana is in the early stages of addressing artificial intelligence through legislation. As of April 2026, the state is tracking 9 AI-related bill. Indiana’s sole current proposal targets employer use of automated decision systems—an area where states like Illinois and New York have already enacted significant protections. Businesses with Indiana employees should monitor HB 1421 closely.
Current Data
Currently tracking 9 bills in Indiana. 0 enacted, 2 in committee. Data updates automatically.
Employer Automated Decision Systems: HB 1421 (Introduced)
House Bill 1421 proposes a ban on employer use of automated decision systems. If enacted, it would restrict how Indiana employers use AI and algorithmic tools in employment decisions including hiring, promotion, termination, and performance evaluation.
Who Is Covered
Employers operating in Indiana who use automated decision-making tools for employment-related decisions. This potentially affects any company using AI-powered hiring platforms, performance analytics, or workforce management tools with Indiana employees.
Key Provisions
- Prohibits employer reliance on automated decision systems for certain employment actions
- Targets AI tools used in hiring, firing, promotion, and evaluation processes
- Follows the national trend established by Illinois AIVII and NYC Local Law 144
HB 1421 has been introduced but has not yet advanced through committee. Employers should monitor its progress, particularly those already subject to similar laws in other states. See our AI hiring laws compliance map for comparison.
What Indiana Doesn’t Regulate—Yet
Indiana has not yet introduced bills addressing several areas where other states are active:
- Healthcare AI: No restrictions on AI in medical or insurance claims decisions
- Deepfakes: No state-level deepfake disclosure or penalty laws
- Consumer AI rights: No comprehensive data privacy or AI transparency framework
- Education AI: No generative AI guidelines for schools
- Algorithmic pricing: No restrictions on AI-driven pricing tools
Companies operating across state lines must still comply with AI laws in states where they have customers or employees. See our 50-state AI laws guide for a complete overview.
Key Bills at a Glance
| Bill | Topic | Status |
|---|---|---|
| HB 1421 | Ban on employer automated decision systems | Introduced |
Compliance Checklist for Indiana
- Audit AI hiring tools — if you use automated decision systems for employment actions involving Indiana workers, document your processes now
- Monitor HB 1421 — track committee hearings and amendments for the employer automated decision system ban
- Review cross-state obligations — Indiana businesses serving customers in states with active AI laws must comply with those states’ requirements
- Prepare for expansion — Indiana’s legislative activity may grow; establish an internal AI governance framework early
For a complete index of Indiana AI legislation, visit our Indiana AI laws page.
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
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