AI Frontier Institute

A bill for an act relating to restrictions on the use of artificial intelligence, and creating a civil cause of action.

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Iowa House File 406, introduced by Wichtendahl, establishes new Chapter 554I of the Iowa Code to restrict how artificial intelligence (AI) may be used on smart devices and applications sold in Iowa on or after July 1, 2025. Under Section 554I.2, device companies—manufacturers with a registered presence in Iowa—must display a standalone consent agreement when a user initializes a new smart device that has AI pre-installed. That agreement must disclose AI's presence, provide the device's 'statement of purpose' explaining what private data the AI accesses and how it will be used, and give the user the option to uninstall the AI or individually refuse its access to each data type. Device companies may not allow AI to access private data beyond what was authorized, may not use that data in ways inconsistent with the statement of purpose, and may not require AI installation as a condition of using the device. Under Section 554I.3, app developers face parallel requirements: a separate consent notice at first launch disclosing AI use, a statement of purpose, and granular opt-out controls for private data access. Section 554I.4 prohibits anyone from using AI to recreate an individual's audio or visual likeness—in a way intended to be substantially indistinguishable from that person—without consent, when used in commercial activity, an unsupported political campaign, or in ways intended to deceive, embarrass, lower the person's standing, or induce them to act or disclose information they otherwise would not. Section 554I.5 creates a civil cause of action for actual and punitive damages (capped at $250,000 per violation), attorney fees, and class actions. Courts must weigh factors such as severity, willfulness, and deterrent effect when setting punitive damages. Each initialized smart device counts as a separate violation for device companies, each device using a developer's AI counts separately for developers, and each day of an ongoing likeness violation counts separately for individuals.

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