AI Frontier Institute

AI PRODUCT LIABILITY ACT

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Illinois SB3590, introduced February 5, 2026 by Sen. Mary Edly-Allen, creates the Artificial Intelligence Product Liability Act (Section 1). The Act establishes a civil liability framework for AI developers and deployers whose systems cause harm. Under Section 15, developers may be held liable if a plaintiff proves defective design, failure to provide adequate instructions or warnings, or failure to conform to an express warranty. For defective design claims, plaintiffs must show by a preponderance of evidence that the developer knew or should have known of the danger, accounted for foreseeable unintended uses, and that a feasible alternative design existed. Under Section 20, deployers are treated as developers and held to the same standard when they make a material and substantial change to the product or intentionally misuse it contrary to the express warranty in a way that proximately causes harm. The Act covers 'products' defined as high-impact AI systems or generative AI systems; small entities with fewer than 20 employees or fewer than 10,000 users are excluded from the definition of 'deployer.' Section 25 establishes comparative negligence and allows joint and several liability for developers and deployers. Courts must recognize a rebuttable presumption of non-defectiveness if a deployer has conducted documented testing and auditing consistent with the NIST AI Risk Management Framework, mitigated foreseeable risks, maintained an AI data sheet available to the Attorney General, and implemented a risk management policy meeting specified criteria. Products used strictly for peer-reviewed scientific research are exempt. The Act supplements but does not supersede existing common law tort and product liability law.

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