WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
1–8 1. "ApplicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device. 2. "Artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2)" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments. 3. "DeveloperDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3)" means a person who, in this state, creates or substantially modifies artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) or an applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) that uses artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2). 4. a. "Device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4)" means a person engaged in the business of manufacturing smart devicesSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) and that has a registered office, a registered agent, or a business office in this state. b. "Device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4)" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devicesSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7). 5. "InitializeInitialize"Initialize" means the process of starting a smart device and associating the smart device with a new user account.§ 554I.1(5)" means the process of starting a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) and associating the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) with a new user account. 6. "Private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6)" means data that artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2), or an applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) that includes artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2), accesses on a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7), and that is not any of the following: a. Content that was generated by using the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) or the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) on the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7). b. Content to which the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2)'s developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3) or the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3) had previously received authorization to access for purposes described in the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8) or the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8). 7. "Smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) and that was sold in this state on or after July 1, 2025. 8. "Statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8)" means a statement made for an applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) or smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) that explains all of the following: a. The types of private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) or smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) was designed to access. b. How the private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) will be used, including but not limited to the types of new content the private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) will be used to generate and how the new content will be used. c. If the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) or smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) is designed to save, copy, or otherwise transfer private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) to a location outside the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7), an explanation of how and where private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) will be maintained, disseminated, and deleted, as applicable.
Section 554I.1 establishes the defined terms for the new chapter. Key definitions include device company (smart device manufacturers with an Iowa presence), developer (persons in Iowa who create or substantially modify AI or AI-enabled applications), smart device (electronic devices sold in Iowa on or after July 1, 2025, capable of running AI software), private data (data accessed by AI on a smart device, excluding AI-generated content and previously authorized content), and statement of purpose (a disclosure document explaining what private data will be accessed and how it will be used).
1(a)–(3)(b) 1 1. a. If a device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) makes a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) available for purchase with artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) installed on the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7), the device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) shall cause an agreement to appear when a user initializesInitialize"Initialize" means the process of starting a smart device and associating the smart device with a new user account.§ 554I.1(5) the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7). The agreement shall contain all of the following: (1) A notice to the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s user that the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) has artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) installed on the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7). (2) If the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) is designed to access the user's private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6), the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8). (3) (a) An option to uninstall the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2). (b) If the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s user does not uninstall the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) under subparagraph division (a), an interactive form that will allow the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s user to refuse the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) access to each type of private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) is designed to access on the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) prior to the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) accessing the private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6). b. The requirements of paragraph "a" shall be separate from any other agreement or disclaimer the device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) requires or is required to create for the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7), including but not limited to terms of service agreements and end user license agreements.
2 2 2. If a device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) changes any information contained in the statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8) for a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7), the device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) shall do all of the following: a. Update the agreement described in subsection 1. b. Cause the updated agreement described in subsection 1 to appear on each smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) affected by the change and which has not authorized or refused access to private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) based on the change.
3 3 3. If a device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) causes a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) the device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) manufactured to install artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2), the device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) shall not do any of the following: a. Permit the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) installed on the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) to access a type of private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) that the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) was not authorized to access in an agreement described in subsection 1. b. Use private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) accessed by the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) in a manner that is not stated in the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8). c. If the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) saves, copies, or otherwise transfers private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) to a location outside a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) from which the private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) originated, maintain, disseminate, or delete the private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) in a manner that is inconsistent with the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8).
4 4 4. a. A device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) shall not require a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) user to install artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) on the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) as a condition to use the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7). b. A device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) shall include clearly identifiable means to allow a user to uninstall artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) from a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) if the artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) was installed on the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) due to an action taken by the device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4).
Section 554I.2 imposes a layered set of obligations on device companies that sell smart devices with pre-installed AI. At initialization, the device company must present a standalone agreement — separate from any terms of service or EULA — that notifies the user of the AI's presence, presents the device's statement of purpose if the AI accesses private data, offers an option to uninstall the AI, and provides an interactive form allowing the user to refuse AI access to each category of private data before the AI accesses it.
If the device company changes the statement of purpose, it must update the agreement and re-present it to affected users who have not yet authorized or refused access based on the change. Device companies that cause AI to be installed on a device they manufactured are prohibited from allowing the AI to access unauthorized types of private data, using private data inconsistently with the statement of purpose, or handling transferred private data inconsistently with the statement of purpose. Device companies may not require users to install AI as a condition of using the smart device, and must provide clearly identifiable means to uninstall AI that was installed by the device company.
1(a)–(b) 5 1. a. If a developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3) makes an applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) that includes artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2), makes the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) available for general use, and designs the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) to access private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6), the developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3) shall cause an agreement to appear on the initial start up of the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) on the smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) to which the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) was installed. The agreement shall contain all of the following: (1) A notice to the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s user that the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) includes artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) and the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) is designed to access private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6). (2) The applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8). (3) An interactive form that will provide the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s user the ability to refuse the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) access to each type of private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) is designed to access prior to the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) accessing the private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6). b. The requirements of paragraph "a" shall be separate from any other agreement or disclaimer the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3) requires or is required to create for use of the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1), including but not limited to terms of service agreements and end user license agreements.
2 6 2. If an applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3) changes any information contained in the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8), the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3) shall do all of the following: a. Update the agreement described in subsection 1. b. Cause the updated agreement described in subsection 1 to appear on each smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) affected by the change which has not authorized or refused access to private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) based on the change.
3 7 3. A developer of an applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) that includes artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) shall not do any of the following: a. Permit the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) to access a type of private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) on a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) that the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) was not authorized to access in an agreement described in subsection 1. b. Use private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) accessed by the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) in a manner that is not stated in the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8). c. If the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) saves, copies, or otherwise transfers private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) to a location outside a smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) from which the private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) originated, maintain, disseminate, or delete the private dataPrivate data"Private data" means data that artificial intelligence, or an application that includes artificial intelligence, accesses on a smart device, and that is not any of the following: a. Content that was generated by using the artificial intelligence or the application on the smart device. b. Content to which the artificial intelligence's developer or the application's developer had previously received authorization to access for purposes described in the smart device's statement of purpose or the application's statement of purpose.§ 554I.1(6) in a manner that is inconsistent with the applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1)'s statement of purposeStatement of purpose"Statement of purpose" means a statement made for an application or smart device that explains all of the following: a. The types of private data the application or smart device was designed to access. b. How the private data will be used, including but not limited to the types of new content the private data will be used to generate and how the new content will be used. c. If the application or smart device is designed to save, copy, or otherwise transfer private data to a location outside the smart device, an explanation of how and where private data will be maintained, disseminated, and deleted, as applicable.§ 554I.1(8).
Section 554I.3 imposes obligations on developers that parallel those imposed on device companies in § 554I.2. When a developer makes an AI-enabled application available for general use and the application is designed to access private data, the developer must present a standalone agreement at initial startup that notifies the user of the AI's presence, includes the application's statement of purpose, and provides an interactive form for the user to refuse application access to each type of private data before it is accessed. The agreement must be separate from any other terms of service or EULA.
If the developer changes the statement of purpose, the developer must update the agreement and re-present it to affected users. Developers are prohibited from allowing the application to access unauthorized private data, using private data in ways inconsistent with the statement of purpose, or handling transferred private data inconsistently with the statement of purpose.
8 On or after July 1, 2025, a person shall not use artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) to intentionally recreate the audio or visual likeness of an individual without the consent of the individual if the likeness was intended to be substantially indistinguishable from the individual and the likeness is used in any of the following ways: 1. Commercial activity. 2. A political campaign which the individual does not support. 3. A manner intended to make other persons believe that the individual engages in activities the individual would reasonably find offensive. 4. A manner intended to diminish the individual's credibility, cause embarrassment, or otherwise lower the individual's esteem within the individual's community. 5. A manner intended to induce a person to take an action or divulge information the person otherwise would not.
Section 554I.4 prohibits any person from using AI to intentionally recreate the audio or visual likeness of an individual without consent, where the likeness is intended to be substantially indistinguishable from the individual. The prohibition applies only when the likeness is used in one of five enumerated contexts: commercial activity, an unsupported political campaign, making others believe the individual engages in activities the individual would find offensive, diminishing the individual's credibility or esteem, or inducing a person to take an action or divulge information they otherwise would not. This is a broad deepfake/digital replica prohibition that is not limited to intimate imagery — it covers commercial, political, reputational, and deceptive uses.
1–6 1. A person may bring an action for actual and punitive damages for a violation of this chapter, including reasonable attorney fees and costs. Punitive damages shall not exceed two hundred fifty thousand dollars for each violation. 2. A class action may be brought under this chapter in accordance with the Iowa rules of civil procedure. 3. The court shall specify the amount of each of the following for each violation of this chapter: a. Actual damages. b. Punitive damages. c. Court costs. d. Reasonable attorney fees. 4. In determining the punitive damages for a violation of this chapter, the court shall consider all of the following: a. The nature and extent of the violation. b. The severity of the violation. c. The potential economic effect of the punitive damages on the person who violated this chapter. d. The good-faith measures the person who violated this chapter took to comply with this chapter. e. The willfulness of the violation. f. The deterrent effect that the imposition of punitive damages will have. g. Any other factors the court finds appropriate. 5. a. For purposes of imposing punitive damages under this chapter, a device companyDevice company"Device company" means a person engaged in the business of manufacturing smart devices and that has a registered office, a registered agent, or a business office in this state. "Device company" includes a registrant as defined in section 548.101, that engages in the business of manufacturing smart devices.§ 554I.1(4) is considered to have committed a separate violation of section 554I.2 for each smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) manufactured on or after July 1, 2025, that is initialized in this state. b. For purposes of imposing punitive damages under this chapter, a developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3) shall be considered to have committed a separate violation of section 554I.3 for each smart deviceSmart device"Smart device" means a computer, smartphone, gaming console, tablet computer, or other electronic device capable of running software to download, install, or use artificial intelligence and that was sold in this state on or after July 1, 2025.§ 554I.1(7) that uses the developerDeveloper"Developer" means a person who, in this state, creates or substantially modifies artificial intelligence or an application that uses artificial intelligence.§ 554I.1(3)'s artificial intelligenceArtificial intelligence"Artificial intelligence" means any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.§ 554I.1(2) or applicationApplication"Application" means a software program designed for an electronic device to enable a user to perform a particular task or set of related tasks including checking the weather, playing games, accessing social media, or managing personal information, within the capabilities of the electronic device.§ 554I.1(1) on or after July 1, 2025, in this state. c. For purposes of imposing punitive damages under this chapter, a person shall be considered to have committed a separate violation of section 554I.4 for each day a violation continues. 6. This chapter shall not preclude a person from bringing a civil or criminal action under any other provision of law.
Section 554I.5 creates a private right of action for any violation of Chapter 554I, authorizing actual and punitive damages plus reasonable attorney fees and court costs. Punitive damages are capped at $250,000 per violation. Class actions are expressly authorized under the Iowa rules of civil procedure. The section specifies per-violation counting rules: each smart device initialized in Iowa is a separate device company violation, each smart device using a developer's AI or application is a separate developer violation, and each day a likeness violation continues is a separate violation. The court must consider seven enumerated factors in determining punitive damages, including the nature, severity, and willfulness of the violation. The chapter does not preclude other civil or criminal actions.