Trump loses more control over AI regulation as Illinois passes landmark law

Reading between the lines, the companies’ support suggests that the big AI firms may benefit from requirements that they can easily meet but might pose a greater challenge to smaller AI firms. Scott Wisor, a policy director at a nonprofit called Secure AI Project, which supported the bill, told Wired that without the law, “we’re in a situation where the AI companies grade their own homework.” To force companies to be more transparent about rapid developments, Illinois would likely rely on “the Big Four accounting and auditing firms—Deloitte, EY, KPMG, and PwC—to audit their safety practices,” Wisor said. The required independent audits will likely frustrate Trump, who has tried and failed to stop states from implementing AI safety laws as Congress stalls on passing any legislation. Democratic Rep. Daniel Didech, who sponsored the bill in the Illinois House, told NBC News that the “legislation is designed to put up some guardrails and make sure we have some safeguards in place to protect against some of the worst catastrophic risks.” Didech made it clear in that interview, however, that he never would have sponsored the bill if the federal government hadn’t delayed implementing meaningful protections. “The states shouldn’t be doing this,” Didech said. “The best way to regulate these types of catastrophic risks would be a federal approach.” But “the reality is that Congress has not taken up this issue yet, and the technology is developing at such a rapid pace that states have had no choice but to step in.” Once Pritzker puts the law on the books, AI firms will be subject to its provisions starting January 1, 2027. While the legislation stipulates that there is no private right of action, any violations could expose firms to civil penalties. Steve Wimmer, a senior policy and technical advisor for the Transparency Coalition, worked with Illinois lawmakers on the language of the law. His nonprofit group lobbies to influence generative AI policies and advocates for AI technologies to be “developed and used in ways which prioritize safety, transparency, and the public good,” the website says. In a post on the Transparency Coalition site, Wimmer said his group considers the law to be “one of the most important pieces of legislation in 2026.” Pushing back on claims that such laws will hamper innovation, Democratic Illinois Sen. Mary Edly-Allen, another co-sponsor, said her goal was to put “minimal guardrails in place” to ensure AI can be a “powerful tool for good.” By passing the law, Edly-Allen suggested that Illinois was creating a “roadmap for responsible innovation to prevent catastrophic risks” rather than an obstacle impeding AI’s explosive growth. “Senate Bill 315 is not about stopping innovation but balancing the great promise of AI with its potential harms,” she said. Didech agreed with Edly-Allen, telling Wired that the Illinois law could become a “testing ground” for AI governance that could show the federal government how to manage risks as public distrust in AI continues to grow. “Laws like this create a world where it’s more likely for the federal government to pass something,” Didech said.